Competing Quote by Ian Macfarlane
“Banks and other providers of credit to households have been competing vigorously to expand or protect their market share. In the process, lending standards have been progressively eroded so that lenders are now engaging in practices that would have been regarded as out of the question five or ten years ago.”
About This Quote
Source Report: Financial Stability Review, Bank of England, 2015
Lending standards have weakened as banks chase market share, leading to riskier credit practices than a decade ago.
In simple terms: Banks lowered standards to gain customers, increasing risk.
Key Takeaway
Re‑evaluate risk before extending credit.
Themes
banking
risk
competition
regulation
Mood
cautious
analytical
Type
analytical
policy
financial
When to use this quote
- mortgage lending
- consumer loans
- small business financing
- policy making
Key Concepts
financial stability
credit risk
market dynamics
Questions to Reflect On
- How can regulators balance competition with safety?
- What safeguards can banks implement to prevent over‑extension?
A Different Perspective
Riskier lending may boost short‑term growth but can cause systemic instability.
