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The Banking Industry Essay

924 words - 4 pages

In addition to the myriad of career options that exist in the world, there are issues that present complications for professionals in those fields. As a Christian, it’s essential to develop a biblically appropriate approach in response to the various issues that manifest themselves in the professional world. The banking industry is an example of a career with manifest issues. Banking is the heart of every modern society’s economy, and cannot appropriately function without bankers, who control the ebb and flow of a nation’s currency, and therefore must appropriately handle the issues that arise. The banker’s ability to do so directly affect the worth of a national currency and the stability of an economy. Specifically, bankers have control over people’s money and must make crucial and calculated decisions with that money every day. This presents opportunity for one of the most prevalent issues facing bankers. Bankers, who are the professional officers of national economies, are confronted with ethical issues related to speculative banking, credit lending, and the temptation of greed, and therefore must develop biblical convictions in decision-making and money handling.
Bankers are the professional officers of national economies who are employed in banking institutions. According to Investopedia, “banks are financial institutions licensed to manage withdrawals and deposits as well as supplying short-term loans to individuals and small businesses.” Therefore as the professional officers in the banking industry, bankers enable banking institutions to operate and function suitably in an economy. To accomplish this task, bankers execute many duties and responsibilities involving the fiscal needs of other people. Because of the pecuniary emphasis of their work, ethical issues that tied to the handling of other people’s money are prevalent within bank systems.
Two ethical issues that bankers face include those surrounding speculative banking as well as those involving loans. These two areas of the banker’s responsibility carry heightened pressure because banks make their money through the lending of their consumers’ monetary deposits. In speculative banking, according to investopedia, bankers are 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. Consequently, the client, whose money the banker is using on any given investment, is unaware and unfamiliar with how their money is being handled. Second, because bankers counsel loan agreements and are the mediator between consumers seeking loans and the financial prosperity of the loaning institution,...

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