3 ms·
“It’s not as if we are suddenly going to start lending to [small and medium-sized enterprises],” said one. “There really isn’t the level of demand, so the dange
by RougeFemme 13y ago
“It’s not as if we are suddenly going to start lending to [small and medium-sized enterprises],” said one. “There really isn’t the level of demand, so the danger is that banks are pushed into riskier assets to find yield.”
I wonder how many small and medium-sized enterprises would agree that there isn't demand for bank loans. There is anecdotal evidence that small and medium-sized companies are looking for bank loans but can't get them. Is it that they truly can't get them at any rate or can't get them at the rates they want. . . Conversely, will banks be "pushed" into riskier assets because they truly have nowhere else to invest/loan their money or because lending to small/medium companies will not pay the yields required to satisfy Wall Street, their stockholders and their senior execs?