GF500 DQ1 Can Bank Failures be Avoided?
I’m studying for my Mathematics class and need an explanation.
Can Bank Failures be Avoided?
Your postings should be qualitative and provide substantive depth that advances the discussion.
POINT: No. Banks are in the business of providing credit. When economic conditions deteriorate, there will be loan defaults and some banks will not be able to survive.
COUNTER-POINT: Yes. If banks focus on providing loans to creditworthy borrowers, most loans will not default even during recessionary periods.
WHO IS CORRECT? Use the Internet to learn more about this issue. Offer your own opinion on this issue. Provide links for supporting references.