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When a financial intermediary, such as a bank, lends money that is not repaid, it incurs a loss that can impact its profitability and capital reserves. If the default rate is significant, it may lead to liquidity issues, forcing the intermediary to tighten lending standards or raise interest rates. In severe cases, sustained losses can jeopardize the institution's solvency, potentially resulting in bankruptcy or requiring a government bailout. Overall, non-repayment affects not only the intermediary but can also have broader implications for the financial system and economy.
What else can I help you with?
When a bank or financial institution lends an person money what is it called?
a loan
What is credit provider?
A credit provider is a bank or financial institution that extends credit (lends money).
Introduction to banking?
A banker or bank is a financial Institution that acts as a payment agent for customers, and borrows and lends money.
Some one who lends money illegally is a called a what?
Someone who lends money illegally is typically referred to as a "loan shark." Loan sharks operate outside of legal regulations, often charging exorbitant interest rates and using intimidation or violence to collect debts. Their activities are considered predatory and can lead to serious financial and legal consequences for borrowers.
What is a person who lends money or the use of goods and services for payment at a later date?
A person who lends money is called a money lender or a Creditor. A person who lends the use of goods and services is called a Renter or a Seller.
What happens to the borrower if they cannot pay back the financial intermediary that lends those funds?
Help?
When a bank or financial institution lends an person money what is it called?
a loan
What is credit provider?
A credit provider is a bank or financial institution that extends credit (lends money).
Introduction to banking?
A banker or bank is a financial Institution that acts as a payment agent for customers, and borrows and lends money.
What does the lender of last resort mean to the federal reserve?
it lends money to banks or anyother 'institution' in financial difficulty.
What does lender of last resort mean with respect to the federal reserve?
it lends money to banks or anyother 'institution' in financial difficulty.
The indirect object of your father usually lends you money?
Lends me... -nova net
What agency of the United Nations UN is called the international money lender?
The World Bank or World Bank Group is an international financial institution. It lends money to countries.
What is the name of one who looks after and lends book?
A librarian looks after and lends book
Some one who lends money illegally is a called a what?
Someone who lends money illegally is typically referred to as a "loan shark." Loan sharks operate outside of legal regulations, often charging exorbitant interest rates and using intimidation or violence to collect debts. Their activities are considered predatory and can lead to serious financial and legal consequences for borrowers.
What is one reason Thomas Paine believes that the youth of the colonies is an advantage over Britain?
Because as a young nation, the colonies have less to lose
What is a person who lends money or the use of goods and services for payment at a later date?
A person who lends money is called a money lender or a Creditor. A person who lends the use of goods and services is called a Renter or a Seller.
