Do banks really
discriminate against minorities when they issue loans or mortgages?
It depends on where you come from politically and also with your personal knowledge of business.
Banks are in business to make money. The only discrimination that affects this urge is the amount of risk involved in the pursuit of profit. If the risk is higher, they charge more or reject the transaction.
Unfortunately, many minorities are poor and are thus poorer risks when in the market for loans and mortgages. As a result, they may be turned down or asked to pay more to offset risk.
Repeat: Banks are in business to make money, not discriminator. On the other hand, politicians are in business only when they get votes. Citing banker bias helps their political cause. (See the Earl J. Weinreb NewsHole® comments.)
It depends on where you come from politically and also with your personal knowledge of business.
Banks are in business to make money. The only discrimination that affects this urge is the amount of risk involved in the pursuit of profit. If the risk is higher, they charge more or reject the transaction.
Unfortunately, many minorities are poor and are thus poorer risks when in the market for loans and mortgages. As a result, they may be turned down or asked to pay more to offset risk.
Repeat: Banks are in business to make money, not discriminator. On the other hand, politicians are in business only when they get votes. Citing banker bias helps their political cause. (See the Earl J. Weinreb NewsHole® comments.)
No comments:
Post a Comment