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Joined: Mar 2001
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"Bank liquid reserves to bank assets ratio (%)
Ratio of bank liquid reserves to bank assets is the ratio of domestic currency holdings and deposits with the monetary authorities to claims on other governments, nonfinancial public enterprises, the private sector, and other banking institutions."

The key here is "domestic currency". You can't get a fair comparison of true liquidity when you are comparing currency that is not internationaly traded with currency that is.
If the Belize Bank were operating under the same restrictions as a US bank, it would have been declared insolvent and taken over by the FDIC long ago based on its non-preforming loan ratio.
AS to a government bailout, I doubt if the Belize Government has the finacial ability to bail out my grandaughters piggy bank.

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More than 140 banks failed in the US in 2009 alone and another 157 in 2010 and then 44 year to date. Not sure Belize should consider any financial advise from the US.

Not only that but in terms of Mortgages approximately 11.18% of all mortgages in the US are either in default or foreclosure.

Now that is something you can be proud of!


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And the Belize Bank has over 35% in default.
The question asked at the begining of this was about Belize banks not US banks.

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If you think Belize money is as good as US try paying your departure tax at the Belize Airport with Belzie. They don't take it and that has to tell you something.

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I pay my departure taxes in BZ$.


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One of the major factors in the collapse of the US house market and home-loan debacle was the kind of Loan to Value Ratio (LTV) that became the industry standard. It was not uncommon to see LTV's in the ultra-scary range of 95-105%. Yep - sometimes they PAID the borrower to borrow the money. When you have that kind of lending, plus teaser rates and increasing balances - the lost dollars are a lot bigger than the "mere" 11% of non-performance might indicate.


In Belize the LTV is at most 60%, but usually it's 50%.

If Bz-Bank loans 50% of an appraised value of a property, with the title as security, and charges 15% interest amortized over 15 years ..... and if this loan goes sour in say, 2 years and the bank forecloses ---- and then if the bank sells short for say 75% of the appraised value --- they still make plenty of money. This is even allowing for an appraisal that is on the high side at the inception of the loan.

Joined: Mar 2009
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Originally Posted by Diane Campbell

In Belize the LTV is at most 60%, but usually it's 50%.

If Bz-Bank loans 50% of an appraised value of a property, with the title as security, and charges 15% interest amortized over 15 years ..... and if this loan goes sour in say, 2 years and the bank forecloses ---- and then if the bank sells short for say 75% of the appraised value --- they still make plenty of money. This is even allowing for an appraisal that is on the high side at the inception of the loan.


on the last public auctions there was mostly no buyer, even below the 60% percent margin. My neighbor's home was auctioned 3 times, and they never reached the banks value..... at the end my new neighbor got the home with his bid.... even below the banks internal value.

With so much bad debt and so many properties under auction
(mostly 1-2 pages in the reporter newspaper) there is no much room for error .

It's funny that you guys always compare with the US, but keep in mind, the US banking system is a hot air balloon, I still keep my cash back in Switzerland where it always was.

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