Is being a banker as easy as it seems ?

Today, in class, we were discussing questions relating to banking as we are doing the financial crisis. Some of the questions made me think about how bankers have difficult choices to make. For example, they have to decide giving between different citizens loans. In class, we discussed four possible different people to loan to : a lady who wanted to buy an expensive watch, a man who wanted to buy a house for his family, another man who wanted to make a car business and a lady who wished to make a charity for refugees arriving in the country. At the time, our club chose the man who wished to start a car business. We chose him because we believed he would be able to pay off the loan ( with interest) most quickly. However, this was because we were thinking like business men. If I was being myself, I would have chosen the man who wanted to buy a house for his family because he was trying to provide for his family and it was the moral idea to do. I was curious to know whether bankers did , as we thought, choose the person to make more money or the person with the most justifiable reason; therefore, I decided to look into it. On the website below, I found out that your credit score largely determines whether you will qualify for a loan. This implies the bankers keep their personal feelings apart from their job. Let me know what you think.

Link found at : https://www.nerdwallet.com/blog/loans/personal-loan-bank-credit-union/

Comments (2)

  • Olivia-Avatar.jpg Olivia @ the BNC 1 month ago

    Hi honorable conclusion! Well done for explaining your thoughts about the activity you looked at in your club. Your response is great and I'm pleased to hear that you thought of this from different perspectives. I've given you a star for your curiosity (doing the extra research!) and open-mindedness. I would be interested to hear what other BNC members think too!

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  • Michael-Faraday-logo-250x250.jpg busy_song
    Michael Faraday School 1 month ago

    In my opinion, I believe that it is thoughtful to think about which reason is the most justifiable one, but when it comes to being a banker and giving someone a loan; I would want to know whether the person would definitely return the money or never return it. Obviously, it is impossible to simply ‘know’ whether the borrower would return the money but I did some research and found out that there are about 5 ways of determining whether the borrower will return the money by looking at this website:
    https://www.gobankingrates.com/loans/personal/banks-decide-personal-loan-eligibility/

    The five ways are if you check the person’s:

    1) Credit score (a number between 300 and 850 that tells you the risk a lender will take when he/she borrows money)

    2) Current income (how much he/she earns)

    3) Employment history (a report of the jobs he/she have did)

    4) Equated monthly installment (a fixed amount of money that he/she pays monthly when returning the money)

    5) Payment history (a record of his/her payments)

    If his credit score, current income, employment history, equated monthly installment and payment history is good, (if I were a banker) I would strongly believe that the best person to give the loan to is the man who wanted to start a car business. This is because, once he starts off the business he will earn money and it is much more likely that he will return the money than any of the other people who are mentioned in the post. Even though the man who wants to buy a house for his family has good intentions, it is less likely that he would return the money unless I check his eligibility and he is eligible.

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