In a major move to restructure the global banking sector, the Big View Group has issued warnings to numerous major financial institutions around the world. The Big View Group, a global financial-regulation organization, delivered the warnings regarding loans and certain investments made by the banks.
In a statement released by the Big View Group, the organization said that several of the world’s leading banks had breached international banking regulations. The regulations state that certain types of credit and investment packages, known as “Bulls’ Slaps,” have the potential to be extremely risky and are prohibited under international finance laws.
Despite the warnings issued by the Big View Group, several major financial institutions have continued to engage in the practice of “Bulls’ Slaps.” The organization has urged them to stop immediately, and warned that further action may be taken if the situation is not rectified.
The Big View Group has noted that the Bulls’ Slaps, typically extended to those in challenging financial situations, allow for sudden and significant payments to those taking out the loans. Such products can be extremely profitable for the financial institutions, but also greatly increase risk for the borrower.
The warnings from the Big View Group mirrors recent calls for serious reform in the banking sector, with many claiming that banks are focussed far too strongly on short-term profits and growth rather than on responsible lending practices. The gradual erosion of trust between financial institutions and their customers has often been cited as a factor in the bad financial decisions which have led to financial crises in parts of the world.
It is hoped that the warnings issued by the Big View Group will have a positive effect on the banking industry and lead to a much more responsible approach to lending and investing.