RESCUE THE GIVEN RISKS:
This phrase is meant to explain that banks should make sure the citizen can always pay back the bank’s money. Furthermore, I will explain my points to do so in this post and it will hopefully help the Bank Of England -protectors of our money- to make sure they can always pay back, and maybe have consequences if they can’t, and new rules so our bank always knows the appropriate times to give and to not. I already know that I am using one of our skills (open-mindness) to explain my own thoughts to make The Bank Of England, and maybe banks all over the world, be a safer place and have safer rules...
- THEY SHOULD KNOW IF THEY CAN PAY BACK... BUT HOW?
In my opinion, the bank should have a system to know if the citizen can pay money back from the loan they took. During the Financial Crisis, when people didn’t pay back money, they had to increase the amount of money that other people had to pay back towards the bank. If the bank knew that people couldn’t pay back, they wouldn’t of gave them money in the first place... but what can they do to stop this happening?
I think the bank should write a form to the citizen making sure they can pay back. Furthermore, it will explain if you can’t there will be severe consequences. For example: jail time; taking property; taking your car ect...
Recently, I have discovered that you are in need of a loan. As you know, the bank had major trouble earning money during the time of the crisis since people didn’t pay back money to the bank. The Bank Of England can not afford this to happen again. Therefore, there will be severe consequences if any citizen is enable to pay money back to us. For Example:
- Jail Time
A short amount of time in jail.
- Taking Your Property
Your property will be confiscated.
- Taking Your Car
Reposeasing your car; if you have one.
- Taking An Amount Of Money
They can take an amount of money from your savings salary.
This letter should be returned to the bank within 2 weeks.
Yours sincerely, (bankers name).
- SAVING MONEY:
I think saving money would help the bank a lot because if a crisis occurs once again, the bank can use their savings if they are in need of money. Furthermore, the money that the bank are saving can be used as back-up if they need something essential for the bank. I think by saving money, the bank will not have as much financial anxiety if they have a low amount of money.
- EXTRA IDEAS:
I think the Bank of England should have a low,high and medium risking and investment portfoli. What I mean by this is that if the bank only has a high portfolio(a large amount of money) the bank can earn a lot in return but can also lose a lot-this risk also resulted the financial crisis in the duration of 2008 and 2009. But if the bank had the whole range of the portfolio (low, high and medium) the bank might lose a little bit of money, but will also earn some in return; which is a SAFER option than to take a big risk which can result losing an abundant amount of money.
SHOULD BANKERS BE PAID A LOT:
In the duration of 2008 and 2009, bankers had trouble protecting and keeping citizen’s money safe. When the crisis ended, many doubted that we could still trust The Bank Of England: during the Financial Crisis the bank had major trouble protecting our money.This is why I think bankers should not be paid a lot of money if they can’t protect our money.
- A TRUE STORY:
One of my teacher’s friends is a banker. When they started working for The Bank Of England, at age 20, they earned a couple of 10 thousand pounds a year. Now age 36, he earns over one-million pounds. My father,who is a specialist doctor, only earns 50,ooo pounds every year. In my opinion, I think doctors should be paid more money, as they have a bigger role of keeping the community safe.
In my post, I have used a couple of the options that we had to make banks better. I have mainly had points of how the bank can become safer and have safer rules; mainly to not lose money in most situations. I hope when the bankers from The Bank Of England read my post, they can use the ideas I have written today to help the bank be safer, and make sure another crisis does not occur.