exactly. However, I was thinking more that has the credit crisis affected enough individuals for it to affect this system as well. Meaning, do less people use this now than before? It also makes me wonder, do some people trust this system more than the well established one that most people use?
The difference is that you gave your money to the banks and expected them to keep it safe. Instead, they took your deposit and lent it to underpaid Americans to buy overpriced houses, in the hope of making lots of money for themselves.
With Hawala, the money is quickly picked up at the other end and not lent out to whoever promises to pay the highest interest rate.
Many banks did not engage in the foolish investment practices we've been hearing about, and yet their lending rates were substantially affected by the credit crisis due to the ensuing market conditions: higher costs of borrowing, higher perceived risks, less overall liquidity, lower trust in other parties, etc.
No one is completely isolated from the effects of a credit crisis.
