Paragon Financial Group is funding during the COVID-19 crisis.

Why are banks still not lending?

Even though there has been constant urging by Washington for banks to start lending, it simply has not happened. The reality is Washington bureaucrats and politicians are making it impossible for banks to actually lend. It all comes down to risk.

With so many new regulations and laws being formulated, it has become nearly impossible to mitigate risk when it comes to business and consumer loans. Banks simply can’t nail down a proper risk assessment with how much Washington has been meddling in the credit markets. Bank examiners have been obsessively cautious on how they value bank assets. This has put a demand on increased bank revenues and, as a result, a decrease in lending practices.

It’s great that Washington has been attempting to tackle the economy, but they need to start creating stability and confidence in their economic policies and methodologies for the banking industry to start lending again.

Let Paragon help when banks say no!

Apply Securely, call 888-400-5931 ext 1 or email us.

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