Bank Business

Bank Business
Name
Institutional Affiliation
Bank Business
If a bank fails, the macroeconomy may not do well since it will not be offering its usual services to clients. Banks give loans to customers who are interested in investing and taking part in businesses that will make the macroeconomy better. If there are no loans to offer customers, they will not be able to engage in the businesses they intended to. If a bank fails, it is a risk to the macroeconomy since investors will not be willing to carry on with the investments since they do not know how safe their finances are. Bank failures raise the question of whether the finances are safe, whether the bank services can be accessed promptly. The macro economy may not be able to conduct business with other regions if a bank fails due to currency exchange failure (Allen and International Economic Association, 2014). Banks allow faster and easier foreign exchange since they have the forex services. If the bank fails, these services will become inaccessible.
Banks should be allowed to take part in any other business form since the customers will have the advantage of business diversification. The involvement of banks in other kinds of services will create a suitable environment for the consumers to also get involved in other business types. If banks involve themselves in other businesses, it will grow trust in the consumer’s minds. The involvement of banks in some activities creates a sense of the activity being authentic to the consumers (Borio, 2014).

For instance, some banks offer financial advice to customers who want to borrow loans from them. The information given allows the customers to handle their businesses well and they are able to make profits.
References
Allen, F., & International Economic Association. (2014). The global macro economy and finance. Basingstoke: Palgrave Macmillan.
Borio, C. (2014). The financial cycle and macroeconomics: what have we learnt? Journal of Banking & Finance, 45, 182-198.