(Answered) Topic 1 can bank failures be avoidedpoint no banks are in

Finance

Topic 1: Can Bank Failures be Avoided?

POINT: No. Banks are in the business of providing credit. When economic conditions deteriorate, there will be loan defaults and some banks will not be able to survive.

COUNTER-POINT: Yes. If banks focus on providing loans to creditworthy borrowers, most loans will not default even during recessionary periods.

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