Unit 4 Topic 4 Flashcards
Why does the financial services sector receive extensive media coverage?
Due to its significance in the economy, public concerns about financial risks, and increased scrutiny after the 2007–08 financial crisis.
How can media coverage help financial services sustainability?
It acts as a watchdog, exposing bad practices, informing the public, and holding financial institutions accountable.
How can the media negatively impact financial services?
Sensationalized or biased reporting can create panic, damage confidence, and lead to financial instability.
What are the main types of mass media?
Broadcast media (TV, radio), print media (newspapers, magazines), online media (websites, blogs, social media).
How do financial newspapers like the Financial Times report on financial issues?
They provide in-depth, technical, and analytical reports with data and factual analysis for industry professionals.
How does the tabloid press cover financial matters?
With shorter, more sensationalized stories, often focusing on high executive salaries and financial scandals.
What is the role of social media in financial news?
It allows rapid sharing of financial news, enables public discussions, and is used by financial firms for PR and customer engagement.
What is media bias?
The tendency of media outlets to present financial news from a particular perspective, influenced by political, economic, or social agendas.
How can media bias affect public perception of financial services?
It can shape opinions, exaggerate crises, and influence consumer confidence in banks and financial products.
What is the difference between subjective and objective reporting?
Subjective reporting reflects personal or institutional opinions, while objective reporting presents facts from multiple perspectives.
What methods do journalists use to practice media bias?
Selective reporting, misleading headlines, omission of facts, and quoting biased experts.
Why do financial services need to be careful about extreme media reporting?
Negative or exaggerated coverage can lead to a loss of trust, bank runs, and reduced consumer confidence.
How did media reporting contribute to the 2007–08 financial crisis?
Sensationalized coverage of Northern Rock’s failure led to panic withdrawals, worsening the crisis.
What was the Payment Protection Insurance (PPI) scandal?
Banks mis-sold PPI policies to customers, leading to billions in compensation payments after media exposure.
What was the Libor scandal?
Banks manipulated interest rates for profit, undermining trust in financial markets.
How have banking IT failures been reported in the media?
High-profile failures, such as RBS’s system outages, received widespread negative media coverage, pressuring banks to improve IT infrastructure.
How does the media serve as a financial watchdog?
By exposing unethical practices, advocating for consumer rights, and prompting regulatory action.
What role did the media play in ending “teaser rates” in banking?
It highlighted misleading promotional rates, leading to changes in banking policies.
How can consumers ensure they get balanced financial news?
By consulting multiple news sources, being aware of bias, and fact-checking information.
