Overdrawn Account

what risk does a bank face if customers withdraw money in excess of their limits?
Replies (2)
Quick Summary
This discussion explores the potential risks banks encounter when customers withdraw funds exceeding their authorised limits. Key concerns raised include the possibility of a customer liquidity problem, a lack of positive business growth, and the diversion of funds. Further clarification is sought on how funds might be diverted in such scenarios.

The bank might feel that there is liquidity problem in the hands of the customer.

The business might not be showing positive growth

There might be diversion of funds. 

Diversion of funds in what way? can you please explain further?

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