Though banks take collateral for recourse, TRUST plays a major role. With a loss of TRUST everything will collapse. What's your view on this ?

Absolutely correct. 

Trust is essential element of lending. Financial analysis and collateral are secondary aspects to lending. Collateral are taken as security precaution but lending should not be done in absence of trust

agree with the answers ..................................................

agree with ur answers

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Agree with Sai Animesh Kumar Nandivada

The time when TRUST is lost, all businesses collapse and the entire economy collapses. Co-ordination and co-operation along with TRUST play major role in performance of a business.