ethical banking essay

I believe that banker should be allow bonuses as without the work that they put into the banks then this would result is a fall within the economy, so in result I do not believe that these bonuses to be unethical. Schermerhon (2005).

Several reputed financial institutions own shares in companies like GenCorp, Lockheed Martin, Textron, and Raytheon, which add up to double-digit equity positions in those companies. Although these are the main roles this is not an indication of the products and service which are provided by individual banks and may differ between them. We are concerned that banks are frequently charging excessive rates and imposing unfair advantages for themselves upon customers. Ethics is crucial in any type of industry and the banking industry is not exempt from it.

Listed below are the results of their studies.

This paper will identify and describes the legal, ethical, and regulatory issues that impact online banking the Websites. Apart from that, banking operations are also one of the factors which contribute to the economical growth of a country. It will ensure financial health as well as social welfare. The scandals that have occurred in the banking sector in the past have further questioned the ability of the banking industry to stick to the ethical code. According to the business student, “ethics refers, security banking and ethics However, the question is do all the banks support and obey these policies? Banks primarily make money by charging higher interest rates on their loans than they pay for deposits. They include giving directions on the right action, obtaining undertakings from commercial banks, revoking the banking license, and imposing penalties. By lending money to others, money enables and promotes actions, and in this sense, when banks lend money to evil-doers they are facilitating their activities. From these policies, it allows a more transparent view into the bank and how it is ran. The writing could be seen on the wall the day BCCI divided its operations between two auditors none of whom had a right or capacity to audit a corporation of this magnitude. The meaning of investment is a venture that involves risks.

They don’t just turn up one day and take possession of the asset. Among these banks, there are managers and directors who reaped millions from the crisis.

However, banks that charge excessive interest rates, abusive commissions, or ultra-profitable credit charges that go beyond reasonable standards for taking an extra benefit from a specific situation in detriment to their customers, are guilty of usury. Banking has failed to fulfill its social function. The fact that regulators have focused on making banks more efficient and transparent shows that the financial sector can improve. It is evident in the lack of uniformity in the industry. They say that the fact that the government has separated these two activities does not necessarily mean better management in the banking sector.

Is a better banking industry possible? It is vital for the systems, which depend on trust, to work. At the moment the reserve requirement is from 8% – 10% of the bank’s total deposit.

It specifically shows how those employed in the banking sector feel about ethical banking. This is an essay portal with lists of topics, sample essays and research papers, and writing tips for high school and college students.

We use cookies to give you the best experience possible. Many people, when they think of banks, they think of all the negatives things however, banks are not bad at all.

Banks have great importance within the economy, and without them, we would see a different world from the one we see today.

For such a scandal to happen, the supervision and regulation of an individual government must have been poor or even unavailable. Earlier on, before the financial crisis, the public saw the banking sector as a too big enterprise to fail. Ethical platforms are channels used to ensure that organizations can be held liable and responsible to ethical issues and actions (Fradkin, 2002). The main purpose of a bank is to provide a safe place where people have confidence to deposit money. Pearson Education Limited. Some banks, mainly small institutions in developed countries have realized the importance of being ethical beyond their internal Code of Values that is, beyond paper and beyond what is strictly within its operations. Thus, the banking industry is independent in terms of its dealing with clients. Ethicss In Banking: Ethics And Ethics In Ethical Banking. There many banking activities which have a positive affect on the economy and which make peoples live much easier. Banks effectively enact, enable, and promote the realization of actions with their lending of financial resources.

So as you can banks play a very important role in modern day’s society. Much work has to be done to estimate ethics in banking for its effectiveness. Ethical dilemma is any situation where the moral principles can’t determine whether the action taken is ether right or wrong.

[online] Available at http://www.thefreedictionary.com/dilemma [Accessed 17th March 2011] * Blurtit (2010) What is the importance of the banks. Commercial banks should also regulate their operations to avoid running back to the government after their collapse (Groarke, 1998). (http://useconomy.about.com/od/glossary/g/Banking.htm) ‘Ethics’ comes in many forms but can primarily be defined as the code or rules of moral principles that are set standards of good or bad, or right or wrong decisions, in personal conduct and therefore is a guide to the behaviour that is morally acceptable from a person or within a group or an organisation. If it were put into place that banks were made national this, this would mean that they would have to be more cautious and would take no risks in the services, which they provide. Siddiqui (2010) With this definition of ethics, ethical behaviour is very much as it seems. Later, the Federal Reserve Bank found out that banks were in different financial positions that they actually reported. The main aim of the minimum requirements is to promote the objectives of the regulatory body. As much as this can be seen to be ethical, the problem with this is that there is higher risk investing in smaller companies as there are not necessarily going to be successful and as a result create more risk of no return on initial investment. Banks also offer overdrafts, this is where the bank provides a short term loan to pay off for example bills. Examples of these banks would be; HSBC, Lloyds TSB & NatWest. This essay has discussed about the different argument about the banking sector as an ethical and unethical. Ethics cannot be “pinned down” to a certain definition, meaning that people perceive the word “ethical” in many different ranges. This is not an example of the work written by professional essay writers. There are a lot of economic, social, and environmental issues arising in this century. That bank will then go on and lends £81 and keep 10%. Boosta Ltd - 10 Kyriakou Matsi, Liliana building, office 203, 1082, Nicosia, Cyprus. Jacklyn Martin The promise to repay is to repay at the branch of the bank where the account is kept, and during banking hours.

Disclaimer: This work has been submitted by a university student.

Money laundering involves making money whose source is illegal seem as if it came from legitimate sources. Now, government efforts aim at reducing this threat. While we acknowledge that there are other points of view regarding the value of families and their role in society, we prefer to keep our investments, and recommendations for our clients' investments away from companies promoting non-family friendly causes and activism. We use cookies to give you the best experience possible. The main essence of private banking in the global market is to undertake investments.

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