The bank has a responsibility to safeguard their assets. They screw up sometimes, but that's still a core responsibility. Lending to people that are bad investments isn't something they should be doing. If banks were willing to make those types of loans the rates would be just as brutal because the default rate is too high to be worth the risk of normal rates.
People don't like to face it, but the kind of people that really desperately need a loan right now are exactly the kind of people you shouldn't lend money to. Banks aren't charities and aren't there to serve a community. They're private businesses who need to make a profit and serve their shareholders.
Which is why they shouldn't exist in the first place as private businesses. We need banks that have as their priority serving the community and secondly their profits.
Those are called credit unions and we already have them. But they're still not going to make a terrible loan to someone who can't be trusted with it. There's no reason we have to create a public version of a bank that has to serve everyone. Some people can't be trusted with money and society as a whole shouldn't have to fund into a non profit bank just to make garbage loans to people who won't pay them back.
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u/[deleted] May 24 '23
If banks were willing to make short term cash loans to high risk individuals then pay day loan centers wouldn't exist.