Question

During the credit crisis in the 2008 – 2009, banks were criticized for restricting their credit. Do you think banks should be allowed to restrict their credit during the credit crisis? Why or Why not?

Answer 1

ANSWER: The credit crisis in 2007 to 2009 was referred to as the global financial crisis this was the worst hit on the global economy ever since after the depression of the 1930s The governing body rules like 12 USC 1972 (one) restrict banks and limit them on extending credits Hence during the time of global crisis, the govemnment law restricted banks from extending unlimited credits to their customers - as the pain was to be shared by everyone, the act of credit restriction by banks were justified Hence banks were allowed to restrict credits during a national and global crisis in order to recover the Gross Domestic Product GDP and the Gross National product GNP