Banking on goodwill
By Deirdre McMurdy, Sympatico / MSN Finance
One of the biggest challenges for business leaders these days is to stay engaged and closely attuned to what's going on outside their immediate circle. It's human instinct, after all, to turn inward during times of trouble and to focus on the urgent matters at hand.
The perils of succumbing to that, however, are splashed all over the front page: chartered banks, which have no shortage of their own concerns, are coming under fire for being self-absorbed. Given the potentially steep cost of grassroots backlash against them, it might be a good idea for the bank chairs to listen up.
First, no one less than the Governor of the Bank of Canada, Mark Carney, is exhorting the chartered banks to help re-float the faltering domestic economy by lending to credit-worthy businesses and individuals at the new, lower rates - instead of hoarding capital as a cushion against bad loans.
The Premier of Ontario, Dalton McGuinty, is also scolding the Big Banks for their call for a provincial corporate tax cut from 14 per cent to 10 per cent. He wasn't too impressed with their suggestion that if a cut isn't forthcoming in 2009, there will be job cuts in the Ontario-centric financial services sector.
Taking a careful reading of the general mood - particularly on the political front - it might be a good time to cultivate an image as part of the solution. Not a new source of trouble.
Posted by: lazy j | Dec 21, 2021 10:00:50 PM
The banks threatening to cut jobs if they dont get a tax break is a little hypocritcal when they are the ones that caused this financial global mess through there greed. If they like threats to further line their own pockets, perhaps the govt should threaten them and revoke their charter and nationalize that bank or institution until they can find someone to run it for the good of the people. Iam sure we can find someone in govt to do so as we send so many high paid politicians every election to Ottawa .I would also like a 4% reduction in my rate of income tax , but would I ever see 1 NO .
Posted by: Trapper | Dec 27, 2021 11:30:45 AM
Why are banks expected to change their company goals or targets. When someone is not qualified for an overdraft, they ask anyways cause they need groceries,etc. Why won't the grocery stores provide this until the check comes in. One of the reasons our banking system is the best and solid is because of their practices. Even the government noted that. By the way , when taxation changed on cars did the government make them change their prices? When gas went down, did the retail stores lower their prices as quick, cheese is still at $8 to $9. We need to decide if this country is going to have free market or socialism in the market place. Oh, I forgot we are a socialist country.
Posted by: D. Huber | Dec 27, 2021 3:02:21 PM
I completely agree with Deidre, the Major banks have been virtually silent during the last 6 months, the CEOs have made no effort to communicate with shareholders or the public. The Royal Bank shares have dropped over 30% , yet the dividend has not been changed, providing a yeild of more than 5% . Where are the multi millionaire bank CEO s now that we are in a fiscal crisis?.This is where they can prove to shareholders that they really deserve their excessive salaries and bonuses.
As the Bank of Canada governor should demand, Show me the Money....
Posted by: rebar new york | May 5, 2021 6:59:24 AM
Hi, it is one of the most great posts I have ever seen before. It is obvious if you have goodwill then you will success in banking sectors .Thanks for sharing such a nice post. I am glad to read this. Thanks again...