Banks aren't going to stop loaning money because of higher interest rates. They're going to loan more money. We will see another economic expansion...
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LamontCranston · M
As rates go up, loans become more expensive for borrowers; fewer are able to afford them.
From the borrower perspective, the loan (especially as inflation makes things more expensive) becames more difficult to afford. From the lender perspective, the potential borrower becomes less likely to pay the loan back.
Banks won't stop lending; that is their business. But they will by necessity have to scrutinize borrowers more carefully, decline more, and lend less to those they approve.
Not quite what you said above.
From the borrower perspective, the loan (especially as inflation makes things more expensive) becames more difficult to afford. From the lender perspective, the potential borrower becomes less likely to pay the loan back.
Banks won't stop lending; that is their business. But they will by necessity have to scrutinize borrowers more carefully, decline more, and lend less to those they approve.
Not quite what you said above.
