Bank lending
I have to answer the questions below in 250 words. I have been reading the chapter and don't fully understand these questions:
Why is bank lending on the decline worldwide? How have banks responded to their loss of market share?
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Why is bank lending on the decline worldwide? How have banks responded to their loss of market share?
The bank lending came into decline due to the current financial crisis. As asset prices went down, bank were forced to take mark to market losses on their books. These losses reduced the balance sheet of the banks and so forced them to reduce lending. In order to lend money, banks need to have ...
Solution Summary
The solution details the decline in bank lending and how the banks have taken actions relating to the loss of market share.