Recession strengthened the world

The global recession took a large toll on many people, but it resulted in the global economy being smarter and stronger for the future. The top bank regulators and central bankers of the world agreed yesterday to global bank rules that increase the amount of money banks need to hold at all times. This new figure is more than three times the amount it used to be and should be enough to prevent a future financial crisis.

Obviously, some bankers are not happy with the rules because it’s more regulations for them to have to deal with, but for the vast majority of people, this is probably a good thing. This recession also showed us that banks have been taking way too many risks and that is not what their purpose for being is. Now that we know that, we know what to look for and how to prevent it from happening moving forward.

These new rules are not automatically implemented. In fact, it will be several years before it is enforced. It will also require the G20 to adopt it and for each individual country to sign off on it. Hopefully the major economies in the world will support it and that will force all the others to follow along. Although it means that banks might find it a little harder to turn a profit, they still should be able to do so and it will strengthen their foundation. This is very important to everyone because we all rely on banks from both a personal and business perspective. Whoever first said that out of a big negative, some positives arise was on to something.