Banks .. What are they good for ? Absolutely Nothing (?)
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Banks .. What are they good for ? Absolutely nothing (?)
Wouldn't be great if Banks actually had a Social Purpose.
Before I go on, I must confess to having worked for HSBC for about 30 years, and I have many fine friends of great character and generosity, that work within this sector.
So before I jump on the bandwagon, and reply to the question 'What are Banks Good For ?' with the obvious answer 'Absolutely Nothing', I feel as though it is right to list what Banks are vital for :-
1. Transactions. Where would be without the smooth running of the payments systems. Banks do invest heavily in this line of work. And it's great to see the UK's contact-less limit rise to £45.
2. International Trade. Again, Banks are essential in financing the business of Imports and Exports.
3. Credit Facilities. As individuals with overdrafts, credit cards and mortgages. As businesses for financing domestic trade.
And I am sure that there are a few more that I could add to the above.
Again before I go on, my comments below, are aimed at the senior leadership teams in the Banks.
I can honestly say that within my Bank, there were only ever a handful of senior leaders that worked with compassion and understanding and empathy.
The staff that provide the 'day to day' front and back office support are lovely people, who are just trying to do a great job.
The problem is that there are to many senior Leaders within Banks, that have climbed over so many colleagues to get into their position.
They are ultra political, and only act for the good of themselves i.e. what do I need to do to maximize my bonus and career prospects.
There is zero compassion for the poor, the desperate and the needy.
There is also one Bank ( with a blue bird for a logo) that is heavily involved in the tax-avoidance / tax evasion sector.
This 'service' had been actively marketed to its wealthy clients for many years, and it's reputation for such shady dealing is well known in the Financial Markets.
The Financial crisis in 2008 was not caused by the Labour Government ( and great to see the right wing papers now acknowledging this) but by the failure of the majority of banks to fund themselves correctly.
There was only one major Bank in the UK that did not need rescuing, and that was HSBC.
So we enter the world of COVID, and what have we seen from the Banks ?
Absolutely nothing.
That is in terms of the blanket support that was needed.
Business-people in need have had to offer personal guarantees and charges over family homes.
In some cases they have been offered standard high cost loans.
And the interest rate margin on the Government backed lending should only be 2% above base rate and no fees.
End of.
Instead, we are hearing of margins of multiples of this, plus hefty arrangement fees.
Today we have heard of a zero interest £500 personal overdraft facilities, which is subject to Bank criteria.
For a family awaiting registration for Unemployment benefits this £500 availability might only last 5 weeks ( if they are frugal).
Where is the boldness Banks ?
Where is your Compassion ?
Where is your humanity ?
It was interesting to see the Right wing Daily Telegraph lead with a Front Page yesterday on the above subject, and furthermore recommended that the big 4 banks be nationalized.
There rational was that it could take quite a few to instill a proper sense of social purpose into the industry.
It may take 10 years to root out the self seeking leaders within the Industry.
It may 20 years.
But surely we now need to have the financial system play its part in making a fairer world.
Now if that was achieved, wouldn't it be nice.
Love and Peace
Banks .. What are they good for ? Absolutely nothing (?)
Wouldn't be great if Banks actually had a Social Purpose.
Before I go on, I must confess to having worked for HSBC for about 30 years, and I have many fine friends of great character and generosity, that work within this sector.
So before I jump on the bandwagon, and reply to the question 'What are Banks Good For ?' with the obvious answer 'Absolutely Nothing', I feel as though it is right to list what Banks are vital for :-
1. Transactions. Where would be without the smooth running of the payments systems. Banks do invest heavily in this line of work. And it's great to see the UK's contact-less limit rise to £45.
2. International Trade. Again, Banks are essential in financing the business of Imports and Exports.
3. Credit Facilities. As individuals with overdrafts, credit cards and mortgages. As businesses for financing domestic trade.
And I am sure that there are a few more that I could add to the above.
Again before I go on, my comments below, are aimed at the senior leadership teams in the Banks.
I can honestly say that within my Bank, there were only ever a handful of senior leaders that worked with compassion and understanding and empathy.
The staff that provide the 'day to day' front and back office support are lovely people, who are just trying to do a great job.
The problem is that there are to many senior Leaders within Banks, that have climbed over so many colleagues to get into their position.
They are ultra political, and only act for the good of themselves i.e. what do I need to do to maximize my bonus and career prospects.
There is zero compassion for the poor, the desperate and the needy.
There is also one Bank ( with a blue bird for a logo) that is heavily involved in the tax-avoidance / tax evasion sector.
This 'service' had been actively marketed to its wealthy clients for many years, and it's reputation for such shady dealing is well known in the Financial Markets.
The Financial crisis in 2008 was not caused by the Labour Government ( and great to see the right wing papers now acknowledging this) but by the failure of the majority of banks to fund themselves correctly.
There was only one major Bank in the UK that did not need rescuing, and that was HSBC.
So we enter the world of COVID, and what have we seen from the Banks ?
Absolutely nothing.
That is in terms of the blanket support that was needed.
Business-people in need have had to offer personal guarantees and charges over family homes.
In some cases they have been offered standard high cost loans.
And the interest rate margin on the Government backed lending should only be 2% above base rate and no fees.
End of.
Instead, we are hearing of margins of multiples of this, plus hefty arrangement fees.
Today we have heard of a zero interest £500 personal overdraft facilities, which is subject to Bank criteria.
For a family awaiting registration for Unemployment benefits this £500 availability might only last 5 weeks ( if they are frugal).
Where is the boldness Banks ?
Where is your Compassion ?
Where is your humanity ?
It was interesting to see the Right wing Daily Telegraph lead with a Front Page yesterday on the above subject, and furthermore recommended that the big 4 banks be nationalized.
There rational was that it could take quite a few to instill a proper sense of social purpose into the industry.
It may take 10 years to root out the self seeking leaders within the Industry.
It may 20 years.
But surely we now need to have the financial system play its part in making a fairer world.
Now if that was achieved, wouldn't it be nice.
Love and Peace
Banks and Covid what an interesting mix, I have an idea as do others that this situation is much much bigger that what we see and perceive before us
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