Extreme conditions, including natural and man-made disasters, might cause disruptions to the work of ATMs and bank branches, as well as bank card terminals at retail locations, rendering consumers in the affected areas unable to acquire the cash they need to survive, APA reports quoting Sputnik.
Kristian Rouz – In the wake of two massive hurricanes pummeling the US, the sustainability of banking operations under extreme circumstances has become a major concern for the sector. As most advanced economies are gradually moving toward a ‘cashless society’ model, with bank transactions and various payment systems gaining a dominant position in the exchange of goods and services, unpredictable disruptions in such transactions might cause chaos, and hinder or halt consumer activity altogether.
The virtual flow of money liquidity through the veins of the market economy might face severe disruptions when key elements of bank infrastructure go offline, as demonstrated by the devastating effects of hurricane ‘Irma’. In Florida, consumer activity was paralyzed for days, as the cash savings of the local consumers have proven insufficient to help withstand or offset the storm conditions.
According to the Federal Reserve, the US central bank had to allocate an additional $2.9 bln in cash to commercial banks in Florida ahead of the hurricane’s onslaught on the state. Two Fed branches in the state were working 24/7 trying to meet the demand for cash, as local residents were anticipating out-of-order cash dispensers and closed commercial bank branches due to the storm.
The virtual flow of money liquidity through the veins of the market economy might face severe disruptions when key elements of bank infrastructure go offline, as demonstrated by the devastating effects of hurricane ‘Irma’. In Florida, consumer activity was paralyzed for days, as the cash savings of the local consumers have proven insufficient to help withstand or offset the storm conditions.
According to the Federal Reserve, the US central bank had to allocate an additional $2.9 bln in cash to commercial banks in Florida ahead of the hurricane’s onslaught on the state. Two Fed branches in the state were working 24/7 trying to meet the demand for cash, as local residents were anticipating out-of-order cash dispensers and closed commercial bank branches due to the storm.
Follow us on Telegram
t.me/apanewsaz
Follow us on Instagram
Follow us on TikTok
Follow us on Facebook
Follow us on X
