Banks and other corporations will never lend money to poor people again. Keep in mind that many countries have laws that allow private individuals to declare b

Banks and other corporations will never lend money to poor people again. Keep in mind that many countries have laws that allow private individuals to declare bankruptcy and default on their debt. Yet, banks still lend money to poor people in those countries. Banks will factor the possibility into their costs (and hence interest rates), and it might reduce their willingness to lend slightly, but this is far from the picture you're painting. All things being equal, people will borrow money smartly or stupidly, but the consequences, good or bad, are faced by the people who borrow. There is a saying that goes something like this: If somebody owes you 100€, it's their problem. If somebody owes you 100 million €, it's your problem. A loan is a two-way street, and it makes good (social, moral, economic, game-theoretic) sense that the lenders also face part of the consequence.