We all know that the existence of banks and the development of the banking system is vital for any economy. However, at the heart of the banking sector, there is always the paradox between being a financial provider with stabilised structure and being the successful business that aims maximise the profits. Unfortunately, in the first documentary “fixing the system”, we can realise the concentration of the banking sector has been shifted from doing the best for the customers to doing the best for the banks themselves. The transformation of bankers from conservative ones to risk takers can be recognised by the public easily following such scandals like LIBOR. This is what went wrong with the banking industry. People has been losing their trust and confidence in bankers since they started to behave very badly.
There is the invisible line between being stabilising and taking risk for profits. Bankers are the ones who work in the risky industry and thereby know thoroughly about this line. Nevertheless, the respect for the limit of risk taking as well as for the customers has not been shown. We understand that banks are, at its root, for-profit organisations who can totally have the trade-off decision risks and benefits. Unfortunately, bankers appeared to take all the risks and as a result had to attempt to manipulate LIBOR to cover their losses.
The show considered Libor Scandal, which were caused by the dishonestly of bankers, as the event that triggered the wider banking crisis later on. However, I reckon that the main point should be discussed here is the change in business culture amongst banks which effectively led to the significant impairment in trust and confidence of the society for bankers. Indeed, the problem in trust and confidence had been existed long before the crash of LIBOR. The banking should have been fixed for the sake of public interest from a long ago.
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