2.1 Stakeholders

Question 1

Stakeholders

Answer 1

Individual or group who has an interest in a bank

Question 2

Stakeholder groups

Answer 2

1. Shareholders
2. Customers
3. Employees
4. Directors/managers
5. Local economy
6. Society
7. Future generations
8. Regulators
9. Government

Question 3

Shareholders

Answer 3

People who collectively own the bank and who provide to its share capital

Want the bank to make good profit = pay them dividends

Want the share value to be high = receive good price if they sell their shares

Question 4

Customers

Answer 4

Are mainly savers and borrowers

Savers - provide the banks with their deposits ( supplying the bank with money that it can lend out)

Want bank to be save and want to be paid a high rate of interest

Borrowers - provide bank with large part of its revenue
Want the bank to lend them on reasonable terms and at a low rate or interest

Question 5

Employees

Answer 5

Provide the bank with their time, knowledge, skills and expertise.

They want competitive salaries, good working condition, career progression, learn and develop.

Question 6

Directors/managers

Answer 6

People who make strategic decisions on how the bank should be run, and how the work should be allocated to staff.

Question 7

The local economy

Answer 7

Bank create employment for local people and provide their services to local customers

Personal customers may cover them to keep a branch open so they can easily access their services.

Business customers expect them to form relationships and provide services over the long term (loan, overdrafts)

Local economy expect bank to be involved in sponsoring local charities, sport team, getting involved in local sustainability issues.

Question 8

Society

Answer 8

All members of society are stakeholders.

Banks operation and performance affects the state of economy and there people’s wellbeing.

Of banks operate safely, finance consumer spend and investment = benefit from economic growth

Question 9

Future generations

Answer 9

Banks are involved as they want to help to direct and finance sustainable investment.

Need to ensure people can meet their needs now

Question 10

Regulators

Answer 10

They expect banks to comply with their rules and codes of conduct

Question 11

Government

Answer 11

Expects the bank to behave in accordance with the law and to pay its taxes

Question 12

The role of banks in society and the wider environment

Answer 12

Economic point of view - banks allow individual and firms to save and earn interest in their surplus money, and to finance personal consumption and business investments.

By providing mortgages, bank make it possible to buy a house to live in, providing long term saving plans and help people to save up for retirement.