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  • 3 years ago

During the recent global financial crisis and recession, banks throughout the world have experienced an increase in non-performing loans i.e. bad debt. Most publicity has been given to the plight of housing markets. However, many loans to small business and households have also turned out to be non-performing. Discuss the following as possible explanations: (a) Banks have become less risk averse (b) Banks have made loans on the basis of incomplete information (c) Central banks have made available lender of last resort facilities Can I get any advice on what to discuss?

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