A period of very high interest rate

A period of very high interest rates, fierce competition, devaluation and mismanagement of financial
institutions culminated with depositor’s losing their confidence in the financial market of
Northern Cyprus. The spark that leads to an explosion of banks collapsing was panic. Investors felt
insecure and surged on banks in order to withdraw deposits. This action dealt the last blow to those
banks, which were already encountering liquidity problems, causing them to close their doors and
go into liquidation. At the beginning of 2000, some of the banks in North Cyprus became insolvent
causing serious problems in banking sector. As a result of this development, government decided
to liquidate Kıbrıs Yurt Bank, Kıbrıs Finans Bank, Everest Bank, Kıbrıs Hürbank and Kıbrıs Kredi
Bank and turn over their management to Deposit Insurance Fund (DIF). In 2001, Tilmo Bank,
Yasa Bank, Ticaret Bank, Asya Bank and Endüstri Bank were also liquidated and their management
transferred to DIF. The Banks, which collapsed, encountered problems in recouping the
loans, granted to individuals, businesses and companies causing a tight liquidity situation resulting
in delayed daily cheque clearing transactions culminating in rumours and panic with a rush of investors
to banks demanding withdrawal of deposits. Large amounts loaned to a single borrower or
a specific area of the economy generate a high risk and are vulnerable to economic changes resulting
inability to service loan and subsequent default in loan repayments, which has a knock on effect
on reducing liquidity. This was clearly evident from the records of banks, which had gone into
receivership in Northern Cyprus.

Hasil (Bahasa Indonesia) 2:

Sebuah periode suku bunga yang sangat tinggi, persaingan sengit, devaluasi dan salah urus keuangan
lembaga memuncak dengan deposan kehilangan kepercayaan diri mereka di pasar keuangan
Siprus Utara. Percikan yang mengarah ke ledakan bank runtuh panik. Investor merasa
tidak aman dan melonjak pada bank untuk menarik deposito. Tindakan ini merupakan pukulan terakhir bagi mereka
bank, yang sudah menghadapi masalah likuiditas, menyebabkan mereka untuk menutup pintu dan
masuk ke likuidasi. Pada awal 2000, beberapa bank di Siprus Utara menjadi bangkrut
menyebabkan masalah serius di sektor perbankan. Sebagai hasil dari perkembangan ini, pemerintah memutuskan
untuk melikuidasi Kibris Yurt Bank, Kibris Finans Bank, Bank Everest, Kibris Hürbank dan Kibris Kredi
Bank dan menyerahkan pengelolaannya kepada Dana Penjamin Simpanan (DIF). Pada tahun 2001, Bank Tilmo,
Yasa Bank, Ticaret Bank, Asya Bank dan Endustri Bank juga dilikuidasi dan manajemen mereka
ditransfer ke DIF. Bank, yang runtuh, mengalami masalah di recouping
pinjaman, yang diberikan kepada individu, bisnis dan perusahaan menyebabkan situasi likuiditas yang ketat sehingga
di tertunda transaksi kliring cek setiap hari berpuncak pada rumor dan panik dengan serbuan investor
ke bank menuntut penarikan deposito. Jumlah besar dipinjamkan ke peminjam tunggal atau
area spesifik ekonomi menghasilkan berisiko tinggi dan rentan terhadap perubahan ekonomi yang mengakibatkan
ketidakmampuan untuk layanan pinjaman dan standar berikutnya dalam pembayaran pinjaman, yang memiliki ketukan di efek
pada pengurangan likuiditas. Ini jelas terlihat dari catatan bank, yang telah pergi ke
kurator di Siprus Utara.