Risk ignorance

The accusation that banks lend recklessly without knowing or considering the risk involved. Banks were accused of having contributed to the financial crisis that followed the subprime crisis through their risk-ignorant behavior. When banks then held back on risky lending during the financial crisis, they were accused of having caused a credit crunch and thus ultimately exacerbating the financial crisis. – See credit absorption, adverse selection, risk culture, risk profile.

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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/