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If the loan is actually written by another bank, why is there any requirement on Ant? Though my position is that 30% capitalization is actually reasonable and
by pushrax 6y ago
If the loan is actually written by another bank, why is there any requirement on Ant?
Though my position is that 30% capitalization is actually reasonable and that our current collective level of leverage is unnecessarily unstable.
- whatok 6y agoYour underwriting standards are going to be different depending on how much skin in the game you have.
- Klinky 6y agoWhy would partner banks accept trash loans without doing due diligence? Though thinking about the housing crisis, greedy short-sightedness comes to mind. It's amazing how some of the people who claim to be the smartest with money are actually the dumbest and riskiest. Are they actually smart or just lucky they won a bet?
- srtjstjsj 6y agoAdding links to a chain makes it weaker, nor stronger.
- TearsInTheRain 6y agoGovernments have a history of bailing out the financial system. Lenders take that into account and will take on riskier loans since they effectively have a put on them.
- balola 6y agoIt's not, the banks lend their excessive cash to a big tech company, Ant then use that money to make small/short-term loans with "big data" credit ratings to individuals unqualified for low-interest bank loans.
- pushrax 6y agoThat makes sense. Though it seems like it should be inconsistent with "if the loan defaults, it's the partner bank's problem, not Ant's."