Do we need banls?

oddsocksjamie

As part of a report for college I need to answer the question "Do we need banks?"

I have started the report and have mentioned the following factors;

> Security of Personal Depositis
> Ease of carrying out transactions

Has anyone else got any views or ideas on the subject?

I plan to go onto explain the need for international banking too.

Thanks for reading this! And Im looking forward to your replies.

Thanks

Aegis

Banks perform the fairly vital role of taking short- to medium-term deposits and transforming them into long term loans to allow people to take out a mortgage. Pretty useful for a start.

Oblivion

Aegis wrote: »

Banks perform the fairly vital role of taking short- to medium-term deposits and transforming them into long term loans to allow people to take out a mortgage. Pretty useful for a start.

Possibly an outmoded concept given that this very model has provided the credit bubble, the consequences of which we are all now suffering from ... discuss.

Dave.

Blah99

You need to define what a "bank" is. A bank can be an institution that simply takes deposits and allows withdrawals, or it can lend money as well. Our entire economy is predicated on the ability for citizens and businesses to borrow money to buy cars, houses, machinery etc.

Aegis

Oblivion wrote: »

Possibly an outmoded concept given that this very model has provided the credit bubble, the consequences of which we are all now suffering from ... discuss.

Dave.

The concept is itself sound, the problem is deciding who to lend to, and how much...

Oblivion

Aegis wrote: »

The concept is itself sound, the problem is deciding who to lend to, and how much...

And since most financial institutions have shown themselves to be incapable of making such value judgements, where does that leave us?

Dave.

Mikeyorks

Whilst the rest happily discuss the merits and demerits of the Banking system ....... there's a lot of info here for you to do your 'own' research.

But it's Bank ....... the title is a bit of a puxxle!

http://en.wikipedia.org/wiki/Bank#History

(read the whole - and some of the links)

TRUSt_NO_1_2

oddsocksjamie wrote: »

As part of a report for college I need to answer the question "Do we need banks?"

I have started the report and have mentioned the following factors;

> Security of Personal Depositis
> Ease of carrying out transactions

Has anyone else got any views or ideas on the subject?

I plan to go onto explain the need for international banking too.

Thanks for reading this! And Im looking forward to your replies.

Thanks

Computers and the Internet have remodelled many businesses and sent many to the grave.

There are numerous alternatives.It's just that the banks are so powerful that the alternatives are given no credence .
People are affected by the media/advertising and the comfort factor of the 'establishment',which has now been seriously questioned and is maybe the reason why you're lecturer has set this assignment.

eg:
National Savings
Natiional Lending..a governement agency with strict interest rate differentials.(ie no loan sharks)

Person to person lending/borrowing is the most obvious..the name of the company that has started this escapes me.
Cut out the middle men.

Banks were formed as a safe place to put your gold so you didn't get robbed.
It's all electronic now.Anybody with a computer could be a 'bank'..provided they could 'persuade' politicians to let them create 'money' at the click of a mouse.

Here's another one..

Have an account at work (regulated by the government and seperate from the company assets)
All your money gets paid straight into your account at work..no delay ..no banks.
You may have an option to 'lend' to your company to earn interest.
Direct debits/standing orders can be set up,and are paid through the internet and cannot be drawn upon unless your wages have been paid in.In case you're wages are not paid in time, the regulations could enforce any penalty costs against the assets of the company.
The monthly sum of outgoings cannot exceed your minimum income stopping you spending more than your income.Anything above that would have to be drawn against a seperate National Savings account,which would have checks on available credit versus current assets.

I've typed this 'on the fly'....but the options are almost endless.

Banks thrive on debt (assuming it can be paid back)