How to prevent another financial crisis.

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To prevent another financial crisis we have three options:

. Don't lend money to everyone who asks.

. Give the banks stricter rules on how they look after their money.

. Reward the banks for being safe with money.

I believe the Bank of England should give banks stricter rules. I think we shouldn't reward bankers for being safe with money because then the bankers are getting paid, but their job is to earn money. It is their job to try to earn the bank as much money as possible. Then, they are earning money for doing nothing.

I think we shouldn't only lend out money to certain people because then we could be not lending money to some people (e.g. people starting a business) who could be able to pay it back.

Furthermore, the rules can be changed to suit how the banks are at that particular time. In addition to this, the rules can also cover lending money to only people who they think can pay it back, and rewarding bankers for being safer with money.

Thanks for reading.

Comments (3)

  • Millbank-logo-250x250.jpg precious_cheetah | Millbank Academy A
    11 Dec 2018

    We can prevent a financial crisis by telling the banks to stop making money. What I mean is when you put money in your bank account , they use your money and double the money as much times as they want and sell it to people who borrow money from the bank. So to prevent another financial crisis banks have to stop making money.

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  • The-Farnley-logo-250x250.jpg delightful_seagull | The Farnley Academy
    17 Dec 2018

    Although that is a way to prevent another financial crisis, without banks making money they would not have enough money to carry on being banks. Without banks, no one could borrow any money.
    Thanks for reading my post.

    Reply to this comment
  • The-Farnley-logo-250x250.jpg entertaining_trumpet | The Farnley Academy
    17 Dec 2018

    Your points are vaild but this links to bankers getting paid more for being safe with loans because if the bankers want to be safe with loans they think about if the people can pay it back as you said.

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