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Can Bank Failures Be Avoided? Point No. Banks are in the business of providing credit. When economic conditions deteriorate, loan defaults will inevitably occur and
Can Bank Failures Be Avoided?
Point
No. Banks are in the business of providing credit. When economic conditions deteriorate, loan defaults will inevitably occur and some banks will not be able to survive.
Counterpoint
Yes. If banks focus on providing loans to creditworthy borrowers, most loans will not default even during recessionary periods.
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