My Final Piece

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The Financial Crisis was in 2008 when things started to go downhill for banks.This was because bankers were lending money to anyone who asked for it without checking if they could pay it back.After a while banks ran out of money,therefore people lost thousands of pounds and people could'nt pay for their rent/daily needs.

I chose Idea 3:Stricter rules for banks.I picked this because if there are stricter rules for banks it is more likely that there won't be another Financial Crisis because less people can take money out.Also some people would get to take money out if the banks knows they are trustworthy enough to pay it all back.This idea should be enforced because the quicker it happens the faster there won't be another Financial Crisis.Although, it would be difficult to make it happen because lots of people would rebel against the idea since they might not be able to pay their money back in time,then would not be able to borrow money from their bank anymore if they wanted to buy a house/technology/expensive things.

The winners of this idea is the bank because they wouldn't have to suffer from another Financial Crisis.Also people that pay that money back to the bank in time would benefit since if less people borrowed money they possible may be able to borrow more when they need it.For example, a man called Dave works in an office he often asks to borrow money from the bank to pay for his rent,the bank lends it to him because they know he can pay it back.

The losers of this idea are the people that can't always pay the money they ask from the bank back in time/not regularly.For example, a man called Bob works in a cafe he also often asks for money from the bank to pay for his daily needs and rent.One time the bank said no to lending him money and Bob could not pay his rent and was then in an extremely difficult position.

This idea is fair because the people that pay their money back would still be able to borrow money when they need it.This idea is also not fair because the people that don't pay their money back in time wouldn't be able to borrow money and they would say the idea was not at all fair.

Thank You for reading my Final Piece!

Comments (5)

  • Tiff-Avatar.jpg Tiff @ the BNC
    18 Dec 2018

    I've given this a star because you've consider the winners and losers of your rule. You've been open-minded in thinking about how it might affect people differently.

    How might the Bank of England check that banks are behaving? What consequences could be put in place?

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  • Michael-Faraday-logo-250x250.jpg busy_song | Michael Faraday School
    30 Dec 2018

    I believe that the Bank of England will always check how the banks are behaving when giving loans to people.

    I believe the Bank of England have their own skilful team of people to monitor how all of the banks are behaving when they give loans, mortgages and any financial activities. Through this team of people, the Bank of England can:

    • give advice to other banks
    • connect all the banks together
    • monitor all of the loans and mortgages that have been put
    • Will give a warning to all the banks any financial risks, financial decisions and safe banking information

    With these consequences put, there are even more questions:

    What will happen if the banks give loans to people and the Bank of England is unaware of this?

    Who can check every day in the bank if they are putting the right information and if how much information they are informing to the Bank of England?

    With the team being in place, the Bank of England will monitor exactly how every loan and mortgage every bank puts. In addition, they can monitor if any bank manager is giving the correct information to people. If the bank does any illegal activities, then the Bank of England will give severe financial penalties or otherwise (jail sentences to the bank managers who are doing illegal banking behaviour) to that particular bank.

    If this is not enough to see the full evidence of what is happening in the bank, there will be solid evidence which, the FSA (Financial Services Authority) will investigate of what has actually been happening in the bank and whether and how the bank has approved the loan. The FSA can also monitor suspicious behaviour if someone informs them about the illegal financial activities and this will inform to the Bank of England.

    These consequences put will allow the Bank of England to monitor every bank in the UK.

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  • Michael-Faraday-logo-250x250.jpg amicable_tornado | Michael Faraday School
    14 Jan 2019

    I enjoyed reading your post, it was quite interesting. I agree with you that idea 3 is the best because the bosses need to set stricter rules for the people that are lending money

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