How to revolutionise a modern day bank

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The Financial Crisis is one of the main topics at the moment and some of us at Faringdon Community College think it's the bank's fault so we created some rules for bank for modern day banks to follow so the financial crisis doesn't happen again:

Rule One- Safe Lending

Banks need to make sure that they loan a safe amount of money which they are positive that their customers can pay back.They also need to make sure that the banks can pay back customers because sometimes they couldn't but took the risk. This would really help because this was one of the main causes of the Financial Crisis of 2008.

Rule Two-Permission For Spending

Banks need to have tighter rules for spending money, they should have to ask to use your money to pay for others. The public should be able to choose how banks spend their money and be able to access more infomation about it.

Rule Three-Less Bribery

One of the main problems which caused The Financial Crisis was bribery- the banker's bosses would give their employees rewards if they took risks and it worked out in their favour. This motivated the bankers to take more risks with peoples money, but sadly for them sometimes it didn't work out, bribery shouldn't be allowed as much.

Comments (3)

  • Tiff-Avatar.jpg Tiff @ the BNC 1 week ago

    We're excited to see some suggestions for bank rules on the Hub! I'm particularly interested in your second rule.

    1) Bribery is an interesting way to consider the concept of how bonuses works. Actual bribery is illegal in banks, can you find out more about this.

    2) What might be some of the risk of bringing in these rules for the economy?

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  • Faringdon-logo-250x250.jpg compassionate_avocado
    Faringdon Community College 4 days ago

    If we brought rule one into action,although it would be safer the people who take money out of banks - especially those who take large amounts- wouldn’t be happy as they would be restricted with their own money which they have earned and deserve. Bribery in banking as you say is illegal but in the financial crisis it boosted the bankers work ethic and general mood because everyone likes rewards for their jobs although in 2008 they just got a bit carried away. On this topic if bankers weren’t allowed to get rewards for good work their performance at work would lower and so the company that they work for may end up having to fire those people. If they fired workers then those workers would have jobs and having no job equals no income. Also the company may have to shut down if it has no workers because the company needs employees especially if it is a large company which more than one person is needed to manage it.

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  • Olivia-Avatar.jpg Olivia @ the BNC 4 days ago in reply to compassionate_avocado's comment

    Well done for thinking these answers through and showing great reasoning!

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