The Role Of Banks In Economic Development is a crucial topic that frequently appears in IELTS Writing Task 2 exams. Based on past exam trends and the increasing importance of financial institutions in global economies, it’s highly likely that this subject will continue to be featured in future tests. To help you prepare, we’ll analyze a relevant question and provide sample essays for different band scores.
Let’s examine a question that has appeared in recent IELTS exams:
Some people think that banks should only provide financial services, while others believe they should also offer advice to their customers on how to manage their money. Discuss both views and give your own opinion.
Analyzing the Question
This question addresses the role of banking in supporting small businesses and individuals. It requires you to:
- Discuss the view that banks should focus solely on financial services
- Explore the opinion that banks should offer financial advice
- Present your own perspective on the issue
Now, let’s look at sample essays for different band scores.
Band 8-9 Sample Essay
Banks play a pivotal role in the financial ecosystem, and their responsibilities have been a topic of debate. While some argue that banks should limit their services to traditional financial operations, others believe they should extend their role to include financial advisory. In my opinion, banks should offer both financial services and advice to their customers, as this comprehensive approach can lead to better financial health for individuals and the economy as a whole.
Those who advocate for banks to focus solely on financial services argue that this specialization allows for more efficient and effective banking operations. They contend that banks’ primary function is to safeguard deposits, facilitate transactions, and provide loans. By concentrating on these core services, banks can optimize their processes, reduce costs, and potentially offer more competitive rates to customers. Moreover, this view suggests that financial advice should be left to specialized financial advisors who can provide more personalized and unbiased guidance.
On the other hand, proponents of banks offering financial advice argue that this additional service can significantly benefit customers and contribute to overall economic stability. Banks have access to vast amounts of financial data and expertise, which can be leveraged to help customers make informed decisions about their money. By providing advice on budgeting, investing, and long-term financial planning, banks can help their customers avoid financial pitfalls and build wealth over time. This approach aligns with the concept of central bank’s role in economic recovery, where financial institutions actively contribute to economic well-being.
In my view, banks should embrace both roles: providing financial services and offering advice. This integrated approach can create a symbiotic relationship between banks and their customers. By offering financial advice, banks can build stronger, more trusting relationships with their clients, which in turn can lead to increased loyalty and business opportunities. Furthermore, well-informed customers are more likely to make sound financial decisions, reducing the risk of defaults and contributing to a more stable financial system.
However, it is crucial that banks maintain transparency and address potential conflicts of interest when offering financial advice. They should clearly distinguish between their role as service providers and advisors, ensuring that customers understand the nature of the guidance they receive.
In conclusion, while the debate on banks’ roles continues, I believe that a balanced approach combining financial services with advisory support is most beneficial. This comprehensive strategy can foster financial literacy, strengthen the economy, and ultimately serve the best interests of both banks and their customers.
Band 6-7 Sample Essay
The role of banks in society is an important topic to discuss. Some people think banks should only provide basic financial services, while others believe they should also give advice to customers about managing their money. I will discuss both views and give my opinion.
Firstly, some people argue that banks should focus only on financial services. They think banks should mainly handle tasks like keeping money safe, helping with transactions, and giving loans. This view suggests that banks can do these jobs better if they don’t try to do too many things. Also, some people worry that banks might give biased advice to sell their own products, which could be bad for customers.
On the other hand, many people believe banks should offer financial advice too. They say that banks have a lot of knowledge about money and can help people make good decisions. For example, banks could teach customers about saving, investing, and planning for the future. This could help people avoid money problems and maybe even grow their wealth. It’s similar to how central banks play a role in financial crisis management, but on a more personal level.
In my opinion, I think banks should do both things – provide financial services and give advice. This is because many people need help understanding money matters, and banks are in a good position to offer this help. However, I also think it’s important for banks to be honest and clear about their advice. They should tell customers if they might benefit from recommending certain products.
To conclude, while there are arguments for banks to stick to just financial services, I believe offering advice as well can be very helpful for customers. As long as banks are transparent, this approach can lead to better financial health for many people.
Band 5-6 Sample Essay
Banks are important for our money. Some people think banks should only do simple things like keep our money safe and give loans. Other people think banks should also tell us how to use our money better. I will talk about both ideas and say what I think.
First, some people say banks should just do basic jobs. They think banks are good at keeping money and helping us pay for things. If banks only do these jobs, they might do them very well. Also, some people worry that banks might give bad advice to sell their own things.
But other people think banks should give advice too. They say banks know a lot about money and can help us. Banks could teach us how to save money and make it grow. This might help people have fewer money problems. It’s a bit like how banks should offer financial education to their customers.
I think banks should do both things. Many people don’t know much about money, so banks can help them learn. But banks should be honest when they give advice. They should tell us if they might get money from telling us to buy something.
In conclusion, I believe banks should keep our money safe and also help us learn about money. This can help many people use their money better.
Explaining the Scores
Band 8-9 Essay:
- Fully addresses all parts of the task with well-developed ideas
- Uses a wide range of vocabulary accurately and flexibly
- Uses a wide range of complex structures with full flexibility and accuracy
- Organizes information coherently and uses a wide range of cohesive devices effectively
- Presents a clear position throughout the response
Band 6-7 Essay:
- Addresses all parts of the task, though some parts may be more fully covered than others
- Uses a sufficient range of vocabulary with some flexibility and precision
- Uses a mix of simple and complex sentence forms
- Arranges information coherently and uses cohesive devices adequately
- Presents a clear overall position, though conclusions may be unclear or repetitive
Band 5-6 Essay:
- Addresses the task only partially; format may be inappropriate in places
- Uses limited range of vocabulary; errors may occur when expressing complex ideas
- Uses limited range of structures with some attempt to use more complex sentences
- Presents information with some organization but may lack overall progression
- Expresses a position but development is not always clear
Key Vocabulary to Remember
- Pivotal (adjective) /ˈpɪv.ə.təl/ – critically important
- Ecosystem (noun) /ˈiː.kəʊ.sɪs.təm/ – a complex network or interconnected system
- Advocate (verb) /ˈæd.və.keɪt/ – to publicly support or recommend a particular cause or policy
- Contend (verb) /kənˈtend/ – to assert something as a position in an argument
- Proponent (noun) /prəˈpəʊ.nənt/ – a person who advocates for something
- Leverage (verb) /ˈlev.ər.ɪdʒ/ – use (something) to maximum advantage
- Symbiotic (adjective) /ˌsɪm.biˈɒt.ɪk/ – involving interaction between two different organisms living in close physical association
- Transparency (noun) /trænsˈpær.ən.si/ – the quality of being open and honest
- Comprehensive (adjective) /ˌkɒm.prɪˈhen.sɪv/ – including or dealing with all or nearly all elements or aspects of something
- Literacy (noun) /ˈlɪt.ər.ə.si/ – competence or knowledge in a specified area
In conclusion, the role of banks in economic development is a complex and multifaceted topic that is likely to appear in future IELTS Writing Task 2 exams. By understanding different perspectives and practicing with sample essays, you can improve your ability to address this subject effectively. Remember to consider various aspects of banking, such as their role in supporting small businesses and their impact on the effects of a global economic recession on developing nations.
To further enhance your skills, try writing your own essay on this topic and share it in the comments section below. This practice will help you apply the strategies and vocabulary you’ve learned, preparing you for success in your IELTS Writing Task 2.