MOGADISHU (KAAB TV) – Information received by the local media in Somalia says that thousands of Somalis are at risk of losing their savings as several banks in the country are facing collapse after mishandling their money. save their customers.
Banks including My Bank, IBS Bank, and Premier Bank have reportedly used depositors’ money to buy public land from the government, a move that failed as they struggled to acquire it. had people buy these houses.
Banks based in Mogadishu are facing a severe cash crunch, making it difficult to honor withdrawal requests or refund their customers. These financial institutions invested in real estate, building houses in the hope of making a profit. However, the houses were deemed unfit for habitation, resulting in the loss of tenants and the inability to resell the land.
Economic experts have pointed out that the banking problem is increasing the government’s occupation of these lands, which has led to people who can buy them. This leaves banks unable to liquidate their assets to recover funds.
Private banks in Somalia are important to keep the savings of many citizens, who rely on these institutions for financial security. The potential failure of these banks could lead to significant financial losses for depositors.
In addition to the banking crisis, more than 100 MPs in the Federal Parliament of Somalia from both houses have publicly suggested not to buy land that the government sells from what they described as “unusual laws and procedures”. . This advice directly affected the banks’ ability to sell off their land investments, adding to their financial woes.
The situation underscores the fragility of Somalia’s banking sector and the wider implications for the country’s economic stability.