Banks Warned to be Careful over Lending Levels In Light of Current Financial Turmoil

The British Chancellor Alistair Darling has warned banks to be careful about their lending policies in light of the recent credit crunch and financial crisis.

Personally I do not think its the banks responsibility, there are just a business and they are their to make money.

If a bank thinks that they can make money by lending a certain person a mortgage, then its up to the bank to make the person that offer. If the bank makes a bad decision, then the bank will go bust, that’s how business works.

But the person also has a responsibility to decide if they can afford this home loan or mortgage. I think many people lack the proper financial education and so do not fully understand the agreements they are making and do not fully understand the risks involved.

Do you think the banks are to blame?

Or is it the people that are borrowing way too much?

What do you think?

Source

CLICK HERE to keep updated with the latest news, share a comment or problems with products and services. Follow us on twitter or read more news.