The financial crisis was when the country went into debt and couldn’t pay it back, due to the selfishness of bankers and the incapabilities of members of the public to pay it back adequately.
Firstly, I wanted to start with talking about the safer lending idea. There are many risks that could come with the safer lending idea: people could take advantage of the bankers who were still getting used to this idea, getting them to do what they want. They could do this by getting angry and then threatening them that they will get that certain banker fired leading them to doing what that person wants. This is a new idea after all meaning that you could lose your money. This is because people might not know the rule and maybe the business would start to corrupt and take peoples money with them. A way I would get around this would be to check that person’s job, see how much money they get in a month and see how much money they had in an account. If after a while the bankers feel that that person can’t pay it back then they should stop the loan payments and start taking the loan back. There should be a meeting beforehand with the person who this affects to inform them and help should be put in place, like a financial advisor, to assist them in improving their situation. The bank can then begin the payments again once the person has recovered. This means that the financial crisis might not happen again.
The negatives to this procedure could be that loans become too risky to give, resulting in none being given, which means banks may crash as they aren’t bringing enough money in. The positives to this may be that if some of the banks close, then lending becomes safer as it will be easier for the Bank of England to monitor due to their not being many banking societies.
Next I wanted to talk about changing how the bankers get paid. This could be either good or bad. It would be good because if people really wanted these rewards they would start working harder to get them and you might end up having a lot of people who would be working hard. But what is stopping them from stopping working hard after they get a reward? The way this could be stopped is that each week there were rewards being given out, it doesn’t matter if you already had one, if you’re working hard you should get one. This could also be very bad. Making people feel like they’re not special or not needed. This could start an argument and might end up with people quitting or being fired. How is this helping the financial crisis from not happening?
Finally, there is the stricter rules. Why would people be bothered by this? What type of stricter rules would there be? Well, I feel the stricter rules should include something like Safer Lending. This may be included separately in all of these but it can also be used in this but making them a bit more strict. The rules may end up being a bit to strict making people not want to visit anymore. But where would they put their money they can’t just leave it at home or on them. They would just have to accept that the Government is just trying to make sure their money is safe and making sure that the financial crisis doesn’t occur again like it did 10 years ago. They also wouldn’t be able to avoid it if it did happen because it would probably end up being put into all of the banks making sure every bank is safe and the people there are also. So the question is would people risk their money because they’re not happy or would they risk what happened with the financial crisis happening again.
To conclude, I believe that all of these could cause problems and solutions towards another financial crisis making this even harder but if I had to choose one I would choose stricter rules. Many people might disagree with me but I do believe this is the best option. Yes, it might make people angry because it’s to strict but keeping the bank strictly to these rules end up with people being safe and so is their money. This might make people trust the government even less but people have to learn to deal with it. These people were brought into this job because they are good at it, not because they were some random person. They went to school to learn everything they need for it and they have the information of the topic they are working on in full so we’ve got to trust them. Even though I personally think at the moment they are handling things in the wrong way.