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What did customers not repaying loans do to banks?

2 Answers

6 votes

Answer:

If the borrowers do not repay a loan, the bank will seize their collateral. Hence, the consequence of not paying a secured loan is simple: you will lose whatever collateral you put up for the loan. Most Regular Singaporeans Take Unsecured Bank Loans It is impractical for a bank to demand secured loans for small sums like S$10,000 or S$20,000.

Step-by-step explanation:

User Foxan Ng
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10 votes

Answer:

The banks' customers could not repay their loans.

People sold off bank stocks, making them worthless.

People stopped taking out loans because they were bankrupt.

The Federal Reserve Board reduced how much money it gave banks to loan.

User Rcannood
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