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Can sub-prime lending be considered the highest risk facing banks??

Suprime lending is the event of banks lending money to people who won't be able to repay back according to a maintained repayment schedule

Loans Risk Management Credit Risk Banking Finance
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تم إضافة السؤال من قبل Nancy Refai , Health, safety and environmental management Trainer and consultant , Freelancer
تاريخ النشر: 2015/03/01
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Amjad Ali
من قبل Amjad Ali , Regional Manager , NATIONAL BANK OF PAKISTAN

Yes it is great risk but banks always take calculated risk and price is charged according to risk involved 

Nancy Refai
من قبل Nancy Refai , Health, safety and environmental management Trainer and consultant , Freelancer

It's a serious risk with high likelihood. banks usually treat it by lending money while having guarantees that payments will be made. Suprime lending is the event of banks lending money to people who won't be able to repay back according to a maintained repayment schedule.

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