Banks Do Not Hate Lending, They Just Love Easy Money
When people say African banks refuse to lend, the usual explanation is a poor credit culture. That is part of the story, but it is not the whole story. Banks are businesses, and every business chases the best return for the least risk. Because of this, a bank that can earn a high yield from the government, with no defaults and no collection costs, will rarely choose a small business loan instead.
Think about it from the banker’s chair. A government security pays a generous rate, arrives on schedule, and needs no site visits. A loan to a bakery, on the other hand, needs underwriting, monitoring and recovery. As a result, the safest borrower in the country quietly becomes the bank’s favourite customer.
That is why the rate the government offers matters so much. When the risk-free return is high, every other borrower has to clear a very high bar before a bank even considers them. Until that bar comes down, credit will keep flowing to the treasury first and to everyone else last.
The lesson for you is simple: do not wait for the system to hand you capital. Understand how money flows, then position yourself on the right side of it. If you want to grow your capital alongside an experienced master trader, copy my trades here: https://www.binance.com/en/copy-trading/lead-details/5293024773212277505?timeRange=365D
Disclaimer: This post is for educational purposes only and is not financial advice. Crypto trading involves risk, including the loss of capital. Always do your own research.
#Economics #Banking #Africa #Investing #Copytrading
$BNB $BTC
When people say African banks refuse to lend, the usual explanation is a poor credit culture. That is part of the story, but it is not the whole story. Banks are businesses, and every business chases the best return for the least risk. Because of this, a bank that can earn a high yield from the government, with no defaults and no collection costs, will rarely choose a small business loan instead.
Think about it from the banker’s chair. A government security pays a generous rate, arrives on schedule, and needs no site visits. A loan to a bakery, on the other hand, needs underwriting, monitoring and recovery. As a result, the safest borrower in the country quietly becomes the bank’s favourite customer.
That is why the rate the government offers matters so much. When the risk-free return is high, every other borrower has to clear a very high bar before a bank even considers them. Until that bar comes down, credit will keep flowing to the treasury first and to everyone else last.
The lesson for you is simple: do not wait for the system to hand you capital. Understand how money flows, then position yourself on the right side of it. If you want to grow your capital alongside an experienced master trader, copy my trades here: https://www.binance.com/en/copy-trading/lead-details/5293024773212277505?timeRange=365D
Disclaimer: This post is for educational purposes only and is not financial advice. Crypto trading involves risk, including the loss of capital. Always do your own research.
#Economics #Banking #Africa #Investing #Copytrading
$BNB $BTC