This website uses cookies to ensure you have the best experience. Learn more

Banking: An Ethical Dilemma? Essay

2628 words - 11 pages

Topic: Banking; an ethical dilemma?

Name: Kan Shen
ID number: u1368086
Module: Introduction to financial services
Module code: BFE0012
Tutor: Shabbir Dastgir and David Pearson
Date: 11 March, 2014
Word count: 2300

Introduction
With the massive development of modern society, people’s income statement has become better and better. The bank has played the important role in many different kinds of areas such as loan contracts, interest and reserves as well. Bank has become more and more significant in people’s life and no one can live without it. Due to the significant status the banks have, the question has come out that does any bank have the ethical dilemma and how ethical have recent banking practices been. In this assignment, the main target is to answer the question and making the analysis and discussion in the same time, including the definition of the bank, what kind of role the bank plays in the society, some typical examples, which are deeply associated with the modern society and the discussion of the examples. In the same time, the fractional reserves as well as maturity transformation are analyzed and discussed. Through the discussion of these two parts, the result can be got that banking system is ethical and positive to the modern society.
What is a bank and the role of bank
As is known to us all, the banking system still constitutes the largest part of the financial system in countries and plays the important role in the whole world in the same time, especially in some developing countries or markets such as China. ‘Banks are the major type of deposit-taking institution, they make their living predominantly by taking deposits which represent their liabilities and loaning these funds to borrowers which represent their assets’ (Pilbeam, 1998). The banks loan out the money in a higher interest rate to make the profit and sometimes some kinds of products are also seemed as the other way to get the benefits such as credit card facilities, the charge fee about the management of the bank account, insurance products and exchange service as well (Pilbeam, 1998). Banks play the important role in economy that it can encourage the growth of economy. According to Gobat (2014), the one of the most important roles of banks is that banks can match up creditors as well as borrowers. One reason why banks are essential to the society is that money could be created by the banks and it makes the great contribution to the international payment system. The individuals and governments need to find a place where can help them to keep their money or funds safety. The debit card or credit card has played the important role, which can make the transaction very fast and easy because each person such as young and old people has the right to use it with the different pin and that is the reason why it is safety. As a result, the economy grows obviously (Gobat, 2014). Money is the core of each bank. Banks can not be operated without enough money. Thus,...

Find Another Essay On Banking: An Ethical Dilemma?

Mandatory vaccination in Children – an ethical dilemma

2280 words - 10 pages Vaccination was first introduced globally for small pox and later on extended to other communicable diseases which are now known as vaccine preventable disease. Vaccination is beneficial both for individuals and community. This bring us to the ethical dilemma - Vaccination of a healthy child with the intention of protecting both the individual child and the community at the same time exposing the child to the theoretical risk of exposure to

Physician Assisted Suicide: An Ethical Dilemma

1939 words - 8 pages they began using the Mercitron, because as a doctor he didn’t want them to experience pain. (Jackson). The use of this machine brought about an ethical dilemma. Is it ethical for terminally ill patients to end their own lives with the assistance of their doctor? Many patients when faced with this decision do not wish to go through the suffering or loss of abilities for doing every day activities. They want to die before they become incapacitated

Mill and Kant's Efforts to Solve an Ethical Dilemma

1373 words - 6 pages It is natural for human beings to subscribe to particular moral ideologies and to apply them to their day-to-day lives since we all live in societies that have norms and values. For many centuries, philosophers have tried to formulate frameworks upon which these moral principles can be based and measured. This paper tries to apply the moral theories of John Stuart Mill and Immanuel Kant is solving an ethical dilemma. John Stuart Mill opens his

Developing an Ethical Framework and Applying It to an Ethical Dilemma

2319 words - 9 pages Introduction It is the purpose of this paper to explain the process by which I have come to develop my own ethical framework and apply this framework to an ethical dilemma. I have discovered through my research that an ethical framework is a collection of guidelines, usually in question format, that function together to support and reinforce the ethical decision-making process. Ethical frameworks can be designed and applied in both personal

The Case of Conjoined Twins- an Ethical Dilemma

3253 words - 13 pages Jodie and Mary are twins joined at their lower abdomens. Jodie is an alert baby, with functioning heart and lungs. Mary has no effective heart or lung function and lives purely because of her attachment to Jodie. According to commonly accepted medical evidence, Jodie’s life would be virtually as long as, and would have the quality of, that of any ordinary child if separated from Mary. It is clear that if the twins were separated then Mary

The Banking Industry

924 words - 4 pages involved in “the act of trading in an asset, or conducting a financial transaction, that has a significant risk of losing most or all of the initial outlay, in expectation of a substantial gain.” Because the initial outlay is essentially capital that doesn’t belong to the bank, the ethical issue is one of institutionalized gambling. More severely, speculative banking is done without the knowledge of the consumer whose money is being invested

Ethical and Moral Issues in Business

650 words - 3 pages because they represent standards or codes of behavior that a particular group adheres to. For instance, ethical issues typically pertain to a specific group setting such as ethical issues in nursing or banking. This difference in morals and ethics serves to divide ethics into two concepts known as personal and business ethics (Chadwick, 1998).Personal ethics are the rules to which an individual abides based upon their morality. If a person feels

Ethical Perspectives

1229 words - 5 pages discussion on issues one is likely to encounter dealing with ethical dilemmas at Bank of America.The four ethical perspectives include character/virtue, obligation/deontology, results/utilitarianism, and equity/relativism; thus, making up CORE. These different ethical perspectives help to explain what drives an individual's decision when faced with an ethical dilemma. It is easy for someone to say what they will do when faced with an example of an

Briefing Paper on Islamic Banking System

2424 words - 10 pages the discipline in the financial system may not appear unless the governments decrease their borrowing from the central bank to a level that is in agreement with the goal of financial constancy.Now a days at personal level people are more aware about Islamic banking and non Muslims are also adopted this concept due to ethical and value oriented approaches. On the corporate side, there is an increasing pressure on conventional banks to adopt Islamic

Together as one

924 words - 4 pages will go more in-depth about the ethical frameworks Ruggerio and Lonergan created and show how they closely relate in solving an ethical dilemma. Vincent Ruggeiro’s four steps of ethical analysis are to help someone analyze an ethical dilemma essentially. His consist of one; gathering details of the situation, two; determining the basic criteria, three; deciding the course of action and fourth; finally making a decision. In the first step

Capitalism's Role in Unethical Behavior

1281 words - 5 pages desiring to behave ethically is if neither firm substitutes. To achieve this outcome requires each firm to behave for the common good of society rather than pursuing individual self-interest. While each fishery may wish to correctly label salmon, it should be noted that the profits of an ethical fishery will erode further if unsophisticated customers shift their patronage to the unethical fishery. This then is the Corporate Dilemma: Should a firm

Similar Essays

An Ethical Dilemma Essay

1526 words - 7 pages guilty. Bowen’s ethical dilemma was this: Was it ethical to leave the Sadhu after doing his part to assist him, or should he have done more? This particular case also sheds light on Individual Ethics contrasted with Group Ethics. Bowen comes to the realization that he “walked by an ethical dilemma without appropriate action”. How can one identify an ethical dilemma upon encountering a situation such as this? An Ethical Dilemma is a complicated

Abortion: An Ethical Dilemma Essay

1960 words - 8 pages born I sanctified you and appointed you as my spokesman to the world." Here God clearly states that He knew Jeremiah, the unborn, before he was conceived and had a purpose for him. A prominent question in this ethical dilemma is "Is this life preconceived?" And if it is, "Do we have the autonomy to terminate this potential being?"A pro-choice stance supports the women's complete autonomy in her healthcare. They believe that life does not begin

Euthanasia, An Analysis Of An Ethical Dilemma

1083 words - 4 pages Voluntary euthanasia is defined as the act of killing someone painlessly, especially to relieve suffering from an incurable illness, with their consent (Collins English Dictionary, 2013). The morality and legal aspect of voluntary euthanasia has been a debate for many years. Voluntary euthanasia is a significant ethical dilemma that impacts nursing practice and other professionals in the healthcare field. With the utilization of ethical

An Ethical Dilemma Within The Army

1619 words - 6 pages Standards or Numbers: An Ethical Dilemma Every organization, both large and small, will typically have a well-defined set of values that they wish to espouse. This is the template for a successful, trained work force. These values will guide individuals during the decision-making processes that they will encounter. This blue print helps to ensure the integrity of the company and the individual, as well. Our Army today is no different. We