How to prevent another financial crisis.

FeaturedImage_FinancialCrisis_1.jpg

To prevent another financial crisis we have three options:

. Don't lend money to everyone who asks.

. Give the banks stricter rules on how they look after their money.

. Reward the banks for being safe with money.

I believe the Bank of England should give banks stricter rules. I think we shouldn't reward bankers for being safe with money because then the bankers are getting paid, but their job is to earn money. It is their job to try to earn the bank as much money as possible. Then, they are earning money for doing nothing.

I think we shouldn't only lend out money to certain people because then we could be not lending money to some people (e.g. people starting a business) who could be able to pay it back.

Furthermore, the rules can be changed to suit how the banks are at that particular time. In addition to this, the rules can also cover lending money to only people who they think can pay it back, and rewarding bankers for being safer with money.

Thanks for reading.

Comments (3)

You must be logged in with Student Hub access to post a comment. Sign up now!