This post will be about what I learnt this week in my BNC club, rotating around three main ideas. They would be the ideas which I have reasons for and against and questions which associate with them. The ideas are about what the Banks could do or change. The three ideas are:
Safer Lending, Stricter Rules and Rewards and Bonuses.
We hadn't activity where put on three pieces of paper which had on them the ideas of: Safer Lending, Stricter Rules and Rewards and Bonuses. We were then asked a few questions and then to stand by one of the pieces of papers (which had been in three different places around the class) due to your answer.
Which Do You Understand the Least?
When this question was asked I stood next to the paper which had said Stricter Rules. I couldn't understand why you people wanted The Bank of England to give stricter rules after they'd learnt their lesson in the Financial Crisis! It was then explained to me and another person with me that Stricter Rules were needed as in the Financial Crisis, The Government hadn't been very strict and therefore Banks made bad decisions. I guess people didn't want the same to happen with The Bank of England.
Which Do You Think Is the Best Idea?
I'd thought that Safer Lending was the best idea because...
There wouldn't be ANY risks being taken and there's more of a chance you earn more money as risks could make you lose and gain money. Being safe will only gain.
The Financial Crisis was partly caused as people couldn't pay back their loans. Safer Lending would mean the Banks would only lend to those who they KNOW can pay back. This is a way to avoid another Financial Crisis.
Stricter Rules would mean less people would be likely to visit that Bank as the rules might be too strict and the Bank could go Bankrupt. Safer Lending would guarantee more people as they wouldn't want to have money business with a Bank which would take lots of risks or way too many rules!
Which Do You Think Is The Least Fair Idea?
I'd say that the least fair idea to be Rewards and Bonuses because not everyone would get an award and they might feel they're not favoured enough. This might make people feel upset or unwanted. Nobody would want that to happen at all! This can happen with children at schools as sometimes not everyone is a winner. People sometimes think this is due to favouritism or 'not being the teacher's pet'. In the subject of this post it would be not being the Boss of The Bank's favourite. We wouldn't the same problem for children to happen with adult.
I hope you enjoyed !this post and that you come up with some reason for your own ideas!