---
title: "Meaning & Key Takeaway of: Logically, it may be argued that banks…"
description: "\"Logically, it may be argued that banks could indeed lower interest rates and make up their profits through larger borrowing volumes. But banks, in turn..."
image: "https://sms4smile.com/quotes/i/e8c/sucheta-dalal-7319_arguing_logically-it-may-be-argued-that-banks-co_2319011.jpg"
---

#  Logically, it may be argued that banks could indeed lower…

![“Logically, it may be argued that banks could indeed lower interest rates and make up their profits through larger borrowing volumes. But banks, in turn, could justify exorbitant rates by arguing that they cater to a riskier segment.” quote by Sucheta Dalal](https://sms4smile.com/quotes/i/e8c/sucheta-dalal-7319_arguing_logically-it-may-be-argued-that-banks-co_2319011.jpg)   [Download](https://sms4smile.com/quotes/i/e8c/sucheta-dalal-7319_arguing_logically-it-may-be-argued-that-banks-co_2319011.jpg) [Open image](https://sms4smile.com/quotes/i/e8c/sucheta-dalal-7319_arguing_logically-it-may-be-argued-that-banks-co_2319011.jpg)

> “Logically, it may be argued that banks could indeed lower interest rates and make up their profits through larger borrowing volumes. But banks, in turn, could justify exorbitant rates by arguing that they cater to a riskier segment.”

[Sucheta Dalal](https://sms4smile.com/quotes/author/sucheta-dalal/)

## About This Quote

This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.

Banks can lower rates but may offset losses by charging higher rates to riskier borrowers, creating a cycle of risk pricing.

**In simple terms:** Banks may shift risk to vulnerable customers.

Key Takeaway

Consider fairness in lending practices.

Themes

finance risk pricing ethics

Mood

concerned analytical

Type

policy economic

When to use this quote

- lending policy
- regulatory review
- consumer protection

Key Concepts

interest rates profit margins risk assessment

Questions to Reflect On

- How can regulators ensure equitable lending?
- What alternatives exist for risk‑adjusted pricing?

A Different Perspective

Higher rates on risky segments can exacerbate inequality.

★ ★ ★ ★ ★   No ratings yet

[Borrowing](https://sms4smile.com/quotes/about/borrowing/) [Customer](https://sms4smile.com/quotes/about/customer/) [Interest](https://sms4smile.com/quotes/about/interest/)

## Related quotes

> [Lower interest rates are usually considered good for stocks because they lower the cost of borrowing and make bonds a less attractive alternative investment.](https://sms4smile.com/quotes/alex-berenson/lower-interest-rates-are-usually-considered-good-for-stocks-because/)

[Alex Berenson](https://sms4smile.com/quotes/author/alex-berenson/)

> [There's a tradeoff. Yeah, I lose the deduction that I really like, but my tax rate is going to go down, and I don't…](https://sms4smile.com/quotes/t-r-reid/there-s-a-tradeoff-yeah-i-lose-the-deduction-that-i-really-like-but/)

[T.R. Reid](https://sms4smile.com/quotes/author/t-r-reid/)

> [There are all these studies out there. But let's get at the bottom line. That is, I want to bring down rates. I want…](https://sms4smile.com/quotes/mitt-romney/there-are-all-these-studies-out-there-but-let-s-get-at-the-bottom/)

[Mitt Romney](https://sms4smile.com/quotes/author/mitt-romney/)

> [However, in spite of the general perception that monetary policy should be conducted so as to avert deflation, a central bank cannot lower interest…](https://sms4smile.com/quotes/toshihiko-fukui/however-in-spite-of-the-general-perception-that-monetary-policy/)

[Toshihiko Fukui](https://sms4smile.com/quotes/author/toshihiko-fukui/)

> [There have been times when the Federal Reserve has restricted the money supply and raised interest rates to gain an end, which had much…](https://sms4smile.com/quotes/wright-patman/there-have-been-times-when-the-federal-reserve-has-restricted-the/)

[Wright Patman](https://sms4smile.com/quotes/author/wright-patman/)

> [It would be helpful if someone would lay out exactly the economic mechanism that gets us from yet lower interest rates to actual economic…](https://sms4smile.com/quotes/jerry-a-webman/it-would-be-helpful-if-someone-would-lay-out-exactly-the-economic/)

[Jerry A. Webman](https://sms4smile.com/quotes/author/jerry-a-webman/)

> [It's time to level the playing field for small business owners and give them the same health care choices that large corporations have. Because…](https://sms4smile.com/quotes/jeff-merkley/it-s-time-to-level-the-playing-field-for-small-business-owners-and/)

[Jeff Merkley](https://sms4smile.com/quotes/author/jeff-merkley/)

> [Everybody will have lower rates, better quality, and better access.](https://sms4smile.com/quotes/nancy-pelosi/everybody-will-have-lower-rates-better-quality-and-better-access/)

[Nancy Pelosi](https://sms4smile.com/quotes/author/nancy-pelosi/)

> [I think the millions of people who had been able to renegotiate their mortgages so they are paying lower interest rates are better off.](https://sms4smile.com/quotes/david-axelrod/i-think-the-millions-of-people-who-had-been-able-to-renegotiate-their/)

[David Axelrod](https://sms4smile.com/quotes/author/david-axelrod/)

> [Multimillionaires cannot pay lower rates than their secretaries and other people working for them.](https://sms4smile.com/quotes/hillary-clinton/multimillionaires-cannot-pay-lower-rates-than-their-secretaries-and/)

[Hillary Clinton](https://sms4smile.com/quotes/author/hillary-clinton/)

> [Businesses and households react to lower rates by investing and spending more. Lower rates also support the prices of housing and financial assets such…](https://sms4smile.com/quotes/jerome-powell/businesses-and-households-react-to-lower-rates-by-investing-and/)

[Jerome Powell](https://sms4smile.com/quotes/author/jerome-powell/)

> [Starting in the '80s or so, after the United States sharply cut its rates, other countries decided they better do it too, and here's…](https://sms4smile.com/quotes/t-r-reid/starting-in-the-80s-or-so-after-the-united-states-sharply-cut-its/)

[T.R. Reid](https://sms4smile.com/quotes/author/t-r-reid/)

> [If you get rid of all these giveaways and loopholes and deductions and credits, then you can sharply lower the rates.](https://sms4smile.com/quotes/t-r-reid/if-you-get-rid-of-all-these-giveaways-and-loopholes-and-deductions/)

[T.R. Reid](https://sms4smile.com/quotes/author/t-r-reid/)

> [Close loopholes, close the special interest Washington carve outs and that means more incomes subject to taxation so we're going to lower the rates…](https://sms4smile.com/quotes/paul-ryan/close-loopholes-close-the-special-interest-washington-carve-outs-and/)

[Paul Ryan](https://sms4smile.com/quotes/author/paul-ryan/)

> [We had 90 percent rates, but nobody paid them. And so you had all these exemptions, exclusions, shelters, all this kind of stuff. And…](https://sms4smile.com/quotes/rick-santorum/we-had-90-percent-rates-but-nobody-paid-them-and-so-you-had-all-these/)

[Rick Santorum](https://sms4smile.com/quotes/author/rick-santorum/)

## More by Sucheta Dalal

> [The message for the smart investor is to watch out. Do not get carried away with news reports and turn smart by pooling information…](https://sms4smile.com/quotes/sucheta-dalal/the-message-for-the-smart-investor-is-to-watch-out-do-not-get-carried/)

[Sucheta Dalal](https://sms4smile.com/quotes/author/sucheta-dalal/)

> [We are living in a globalised world and most of us are worried stiff about powerful interest groups steadily pushing India towards obscurantist and…](https://sms4smile.com/quotes/sucheta-dalal/we-are-living-in-a-globalised-world-and-most-of-us-are-worried-stiff/)

[Sucheta Dalal](https://sms4smile.com/quotes/author/sucheta-dalal/)

> [We like to joke that India has sick companies but rich promoters. Yet, even after the bad loans and non-payment of dues have turned…](https://sms4smile.com/quotes/sucheta-dalal/we-like-to-joke-that-india-has-sick-companies-but-rich-promoters-yet/)

[Sucheta Dalal](https://sms4smile.com/quotes/author/sucheta-dalal/)

> [I have missed meetings because a Speed Post from a government office reached after the meeting. But these are rare blips in a large…](https://sms4smile.com/quotes/sucheta-dalal/i-have-missed-meetings-because-a-speed-post-from-a-government-office/)

[Sucheta Dalal](https://sms4smile.com/quotes/author/sucheta-dalal/)

> [The paper's self-confessed love affair is with the advertiser and its flourishing bottomline gives it the power to desecrate editorial space and express the…](https://sms4smile.com/quotes/sucheta-dalal/the-paper-s-self-confessed-love-affair-is-with-the-advertiser-and-its/)

[Sucheta Dalal](https://sms4smile.com/quotes/author/sucheta-dalal/)

> [Motherhood, pester power and emotional blackmail - Indian marketers have cottoned on to the fact that these three themes can sell just about anything…](https://sms4smile.com/quotes/sucheta-dalal/motherhood-pester-power-and-emotional-blackmail-indian-marketers-have/)

[Sucheta Dalal](https://sms4smile.com/quotes/author/sucheta-dalal/)

> [In the e-filing system, the accountant has the user identity and password of each company. This would potentially allow a rogue accountant to play…](https://sms4smile.com/quotes/sucheta-dalal/in-the-e-filing-system-the-accountant-has-the-user-identity-and/)

[Sucheta Dalal](https://sms4smile.com/quotes/author/sucheta-dalal/)

> [Entrepreneurial freedom and funding of potentially good businesses will certainly increase the number of wealthy Indians, create employment and have some cascading effect in…](https://sms4smile.com/quotes/sucheta-dalal/entrepreneurial-freedom-and-funding-of-potentially-good-businesses/)

[Sucheta Dalal](https://sms4smile.com/quotes/author/sucheta-dalal/)

> [If India is notorious for never punishing scamsters and letting politicians get away with loot, rape, murder and worse, it is because they are…](https://sms4smile.com/quotes/sucheta-dalal/if-india-is-notorious-for-never-punishing-scamsters-and-letting/)

[Sucheta Dalal](https://sms4smile.com/quotes/author/sucheta-dalal/)

> [If you are a small investor, do take the basic precaution of going to a registered broker/sub-broker and getting receipts for your transactions. Or…](https://sms4smile.com/quotes/sucheta-dalal/if-you-are-a-small-investor-do-take-the-basic-precaution-of-going-to/)

[Sucheta Dalal](https://sms4smile.com/quotes/author/sucheta-dalal/)

> [For Indias 40 million taxpayers, the bulk of whom are salaried employees, forking out hefty service tax is a double whammy the government taxes…](https://sms4smile.com/quotes/sucheta-dalal/for-indias-40-million-taxpayers-the-bulk-of-whom-are-salaried/)

[Sucheta Dalal](https://sms4smile.com/quotes/author/sucheta-dalal/)

> [Putting an end to usurious rates is not going to be as simple as asking banks to lay down internal guidelines, policies and procedures.](https://sms4smile.com/quotes/sucheta-dalal/putting-an-end-to-usurious-rates-is-not-going-to-be-as-simple-as/)

[Sucheta Dalal](https://sms4smile.com/quotes/author/sucheta-dalal/)

> [Mobile users happily suffer bad connections, dropped calls, inaccessible networks and pay higher charges for services that would have caused endless annoyance on a…](https://sms4smile.com/quotes/sucheta-dalal/mobile-users-happily-suffer-bad-connections-dropped-calls/)

[Sucheta Dalal](https://sms4smile.com/quotes/author/sucheta-dalal/)

> [The truth is that very few newspapers in the country are willing to do a fair and impartial investigation into the shenanigans of industrialists,…](https://sms4smile.com/quotes/sucheta-dalal/the-truth-is-that-very-few-newspapers-in-the-country-are-willing-to/)

[Sucheta Dalal](https://sms4smile.com/quotes/author/sucheta-dalal/)

> [Netizens and site operators must find ways to police themselves in order to keep government interference to a minimum.](https://sms4smile.com/quotes/sucheta-dalal/netizens-and-site-operators-must-find-ways-to-police-themselves-in/)

[Sucheta Dalal](https://sms4smile.com/quotes/author/sucheta-dalal/)

[Explore all 92 Sucheta Dalal quotes ](https://sms4smile.com/quotes/author/sucheta-dalal/)

## More Arguing quotes

> [I do wish you wouldn't argue with me when I'm knitting.](https://sms4smile.com/quotes/gerald-durrell/i-do-wish-you-wouldn-t-argue-with-me-when-i-m-knitting/)

[Gerald Durrell](https://sms4smile.com/quotes/author/gerald-durrell/)

> [Any comprehensive doctrine, religious or secular, can be introduced into any political argument at any time, but I argue that people who do this…](https://sms4smile.com/quotes/john-rawls/any-comprehensive-doctrine-religious-or-secular-can-be-introduced/)

[John Rawls](https://sms4smile.com/quotes/author/john-rawls/)

> [It's fine to talk about politics with people you agree with. But it is rude to argue about politics with people you disagree with.…](https://sms4smile.com/quotes/lawrence-lessig/it-s-fine-to-talk-about-politics-with-people-you-agree-with-but-it-is/)

[Lawrence Lessig](https://sms4smile.com/quotes/author/lawrence-lessig/)

> [Men are fair, and they have learned not to personalize anger - they can disagree with you and argue to the bone, but afterward…](https://sms4smile.com/quotes/warren-farrell/men-are-fair-and-they-have-learned-not-to-personalize-anger-they-can/)

[Warren Farrell](https://sms4smile.com/quotes/author/warren-farrell/)

> [When Eudæmonidas heard a philosopher arguing that only a wise man can be a good general, "This is a wonderful speech," said he; "but…](https://sms4smile.com/quotes/plutarch/when-eud-monidas-heard-a-philosopher-arguing-that-only-a-wise-man-can/)

[Plutarch](https://sms4smile.com/quotes/author/plutarch/)

> [Fasting is required, staying away from fighting and arguing and bombing of masjids is still going on. Hatred is still manifested between Sunni and…](https://sms4smile.com/quotes/louis-farrakhan/fasting-is-required-staying-away-from-fighting-and-arguing-and/)

[Louis Farrakhan](https://sms4smile.com/quotes/author/louis-farrakhan/)

> [The problem for the Left, however, is that the moment it stops painting the Right as vile, it has to argue the issues.](https://sms4smile.com/quotes/dennis-prager/the-problem-for-the-left-however-is-that-the-moment-it-stops-painting/)

[Dennis Prager](https://sms4smile.com/quotes/author/dennis-prager/)

> [To argue with a person who has renounced the use of reason is like administering medicine to the dead.](https://sms4smile.com/quotes/thomas-paine/to-argue-with-a-person-who-has-renounced-the-use-of-reason-is-like/)

[Thomas Paine](https://sms4smile.com/quotes/author/thomas-paine/)

> [You can argue that the Terminator movies reboot their world each time they go back in time, but that doesn't negate the value of…](https://sms4smile.com/quotes/david-hayter/you-can-argue-that-the-terminator-movies-reboot-their-world-each-time/)

[David Hayter](https://sms4smile.com/quotes/author/david-hayter/)

> [We may argue eloquently that 'Honesty is the best Policy' - unfortunately, the moment honesty is adopted for the sake of policy it mysteriously…](https://sms4smile.com/quotes/dorothy-l-sayers/we-may-argue-eloquently-that-honesty-is-the-best-policy-unfortunately/)

[Dorothy L. Sayers](https://sms4smile.com/quotes/author/dorothy-l-sayers/)

> [I'm a very serious person, but I don't take myself very seriously and I would rather laugh all day than argue.](https://sms4smile.com/quotes/stone-cold-steve-austin/i-m-a-very-serious-person-but-i-don-t-take-myself-very-seriously-and/)

[Stone Cold Steve Austin](https://sms4smile.com/quotes/author/stone-cold-steve-austin/)

> [These eyes, tho' clear To outward view of blemish or of spot, Bereft of light, their seeing have forgot, Nor to their idle orbs…](https://sms4smile.com/quotes/john-milton/these-eyes-tho-clear-to-outward-view-of-blemish-or-of-spot-bereft-of/)

[John Milton](https://sms4smile.com/quotes/author/john-milton/)

> [There's crucial distinction that has to be drawn between the Shari'a, which is this hugely expansive vision of cosmic order that I've been describing,…](https://sms4smile.com/quotes/sadakat-kadri/there-s-crucial-distinction-that-has-to-be-drawn-between-the-shari-a/)

[Sadakat Kadri](https://sms4smile.com/quotes/author/sadakat-kadri/)

> [Only fools argue whether to eat meat or not. They don't understand truth nor do they meditate on it. Who can define what is…](https://sms4smile.com/quotes/guru-nanak/only-fools-argue-whether-to-eat-meat-or-not-they-don-t-understand/)

[Guru Nanak](https://sms4smile.com/quotes/author/guru-nanak/)

> [The surest sign that you haven't any sense is to argue with one who hasn't.](https://sms4smile.com/quotes/laurence-j-peter/the-surest-sign-that-you-haven-t-any-sense-is-to-argue-with-one-who/)

[Laurence J. Peter](https://sms4smile.com/quotes/author/laurence-j-peter/)

Browse all 1,908 Arguing quotes

```json
{
    "@context": "https://schema.org",
    "@graph": [
        {
            "@type": "Quotation",
            "text": "Logically, it may be argued that banks could indeed lower interest rates and make up their profits through larger borrowing volumes. But banks, in turn, could justify exorbitant rates by arguing that they cater to a riskier segment.",
            "creator": {
                "@type": "Person",
                "name": "Sucheta Dalal"
            },
            "isPartOf": {
                "@id": "https://sms4smile.com/quotes/#website"
            },
            "url": "https://sms4smile.com/quotes/sucheta-dalal/logically-it-may-be-argued-that-banks-could-indeed-lower-interest/",
            "about": {
                "@type": "Thing",
                "name": "Arguing"
            },
            "@id": "https://sms4smile.com/quotes/sucheta-dalal/logically-it-may-be-argued-that-banks-could-indeed-lower-interest/#quotation",
            "image": {
                "@type": "ImageObject",
                "@id": "https://sms4smile.com/quotes/i/e8c/sucheta-dalal-7319_arguing_logically-it-may-be-argued-that-banks-co_2319011.jpg",
                "contentUrl": "https://sms4smile.com/quotes/i/e8c/sucheta-dalal-7319_arguing_logically-it-may-be-argued-that-banks-co_2319011.jpg",
                "url": "https://sms4smile.com/quotes/i/e8c/sucheta-dalal-7319_arguing_logically-it-may-be-argued-that-banks-co_2319011.jpg",
                "width": 1080,
                "height": 1080,
                "caption": "“Logically, it may be argued that banks could indeed lower interest rates and make up their profits through…” — Sucheta Dalal",
                "creditText": "SMS4Smile Quotes",
                "creator": {
                    "@id": "https://sms4smile.com/quotes/#organization"
                }
            }
        },
        {
            "@type": "BreadcrumbList",
            "itemListElement": [
                {
                    "@type": "ListItem",
                    "position": 1,
                    "name": "Home",
                    "item": "https://sms4smile.com/"
                },
                {
                    "@type": "ListItem",
                    "position": 2,
                    "name": "Quotes",
                    "item": "https://sms4smile.com/quotes/"
                },
                {
                    "@type": "ListItem",
                    "position": 3,
                    "name": "Sucheta Dalal",
                    "item": "https://sms4smile.com/quotes/author/sucheta-dalal/"
                },
                {
                    "@type": "ListItem",
                    "position": 4,
                    "name": "Logically, it may be argued that...",
                    "item": "https://sms4smile.com/quotes/sucheta-dalal/logically-it-may-be-argued-that-banks-could-indeed-lower-interest/"
                }
            ],
            "@id": "https://sms4smile.com/quotes/sucheta-dalal/logically-it-may-be-argued-that-banks-could-indeed-lower-interest/#breadcrumb"
        },
        {
            "@type": "WebSite",
            "@id": "https://sms4smile.com/quotes/#website",
            "name": "SMS4Smile Quotes",
            "url": "https://sms4smile.com/quotes/",
            "publisher": {
                "@id": "https://sms4smile.com/quotes/#organization"
            }
        },
        {
            "@type": "Organization",
            "@id": "https://sms4smile.com/quotes/#organization",
            "name": "SMS4Smile Quotes",
            "url": "https://sms4smile.com/quotes/",
            "logo": {
                "@type": "ImageObject",
                "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png",
                "width": 512,
                "height": 512
            }
        }
    ]
}
```