Subject: Banking; an ethical dilemma?Module: Introduction to financial servicesIntroductionWith the massive development of modern society, people's income account has improved more and more. The bank has played an important role in many types of areas such as loan contracts, interest and reserves. Banking is becoming more and more important in people's lives and no one can do without it. Due to the important status of banks, the question has arisen whether a bank faces an ethical dilemma and to what extent its recent banking practices have been ethical. In this assignment, the main objective is to answer the question and at the same time do analysis and discussion, including the definition of bank, what kind of role bank plays in society, some typical examples, deeply associated with modern society and discussion of examples. At the same time, fractional reserves as well as maturity transformation are analyzed and discussed. Through the discussion of these two parts, it can be concluded that the banking system is ethical and positive for modern society. What is a bank and its role? As we all know, the banking system still constitutes the largest part of the banking system. financial system in countries and at the same time plays an important role worldwide, especially in some developing countries or markets like China. “Banks are the primary type of deposit-taking institution; they earn their living primarily by accepting deposits which represent their liabilities and lending these funds to borrowers who represent their assets” (Pilbeam, 1998). Banks lend money at a higher interest rate to make profits and sometimes certain kinds of ...... middle of paper ......emma_.html [Accessed March 10, 2014]. Gobat, J. 2014. Finance and development. [online] Retrieved from: http://www.imf.org/external/pubs/ft/fandd/2012/03/basics.htm [Accessed: March 10, 2014]. Hülsmann, JG 2008. The ethics of monetary production. Auburn, AL: Ludwig von Mises Institute. Hutt, W. H. 1956. “The Return on Money Held,” in Mary Sennholz (Ed.), On Liberty and Free Enterprise: Essays in Honor of Ludwig von Mises: 196-216. Princeton, NJ: Van Nostrand. Pilbeam, K. (1998) Finance & Financial Markets, New York: PALGRAVEReamer, F. (1995). Values ​​and ethics of social work. New York: Columbia University Press. Robison, W. and Reeser, L. C. (2002). Ethical decision making for social workers. New York: Allyn & Bacon. Rothbard, MN [1962] 2009. Man, Economy and the State: A Treatise on Economic Principles, 2nd ed. Auburn, AL: Ludwig von Mises Institute