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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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