LibraryScenariosWhen the bank's interest and the borrower's good pull apart
Scenario

When the bank's interest and the borrower's good pull apart

The numbers say I can approve this loan at a rate the family will struggle to carry, and it will be good business for the bank. Pricing the risk is the easy part, I could do it in my sleep. What tests me is the person across the desk, and holding what is good for them against what is good for the bank without one just swallowing the other.

Aurelius
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More people experience this than they realize.

What we've seen

You can price the risk easily; balancing the bank's gain against the borrower's good is the hard part.

If this sounds familiar, the Library can help you find the bigger picture.