# Bank lending basic rule

- Canonical URL: https://www.gerhardmerk.de/bank-lending-basic-rule
- Post ID: 591572
- Modified: 2023-07-25T21:00:39+00:00
- Language: en

## Definition

A loan may only be granted to those who - subjectively are willing and - objectively are able to repay the loan. - Financial history clearly shows that as soon as these two circumstances are not conscientiously taken into account, bank failures with far-reaching consequences occur sooner or later, as well as in the course of the subprime crisis. - See payoff assistance, Community Investment Act, credit, short-term, credit maturation, credit card fiasco, credit scoring procedure, credit loss, air securities, ninja loans, papers, toxic, subprime lending, subprime housing finance, lemon trade, twenty-two-eight credit. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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