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The bank is taking all of the AML / KYC risk for all of these loans by law, which is costlier / riskier than you’d expect. Further, they’re taking a giant risk
by sailfast 7y ago
The bank is taking all of the AML / KYC risk for all of these loans by law, which is costlier / riskier than you’d expect. Further, they’re taking a giant risk that they did paperwork in line with a massive government program that was rolled out extremely quickly without guidance or details.
$10B seems like a pretty low number for this risk plus the cost of servicing the loans over time.
- tempsy 7y agoThat’s why most banks are only approving loans for their existing customers. All of that onboarding work is already done in that case.