Cyprus banking crisis causes expats to consider asset diversity

Published:  12 Apr at 6 PM
Want to get involved? Become a Featured Expat and take our interview.
Become a Local Expert and contribute articles.
Get in touch today!
Difficult times may be ahead for many thousands of expats who believed that banks were the safest place for their savings and investments.

In the wake of the ongoing banking crisis in Cyprus, expats living in many favoured destinations are being advised to diversify their assets to prevent being caught in a similar trap. It’s slowly being realised that bank deposits are no longer a safe, risk-free haven, especially as the waves of the 2008 financial meltdown continue to break over a number of European countries.

Of major concern in expat circles nowadays is the confusion over the various deposit guarantee schemes which vary between jurisdictions. For example, those using banks in the Isle of Man may not realise that the level of protection is only £50,000, whereas in the EU and UK it’s double that amount.

However, the mere fact that banks in Cyprus were forced by the EU to surrender percentages of client savings gives pause for thought as regards any compensation scheme. It’s generally accepted that trust and confidence in banks across the EU has been severely dented by the EU’s demands, with investment advisers rushing to convince their clients that cash is not the only asset worth having.

Diversification is the name of the game nowadays, with savings ideally spread across funds, sectors and maybe even different managers although, for expats with no experience in investment matters, finding the right advisor in an unfamiliar country may be more by chance than design. Recently, investment scandals in Spain hit the expats news boards, and it’s still not clear how many expats worldwide will lose their savings over the as yet unresolved LM Australia debacle.
Like this news?

Comments » No published comments just yet for this article...

Feel free to have your say on this item. Go on... be the first!

Tell us Your Thoughts On This Piece:

Your Name *
Email * (not published, needs verification one time only)
  • Facebook
  • Follow us on Twitter
  • RSS feed
  • Facebook

Latest Headlines

News Links

News Archive