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"What we are seeing even now is a mix of the older, more aggressive form of lending coexisting with newer, more conservative types of loans," says Kristi Colburn, of GE Capital Markets.
An accomplished sailor and founder of Lending Club, Mr. Laplanche was hosting executives from hedge funds, Goldman Sachs and other banks — part of his effort to win over Wall Street on his plans to upend traditional banking with a faster, more democratic form of lending.
Peter Sands, the boss of Standard Chartered, an emerging-market leader, argues that there are swathes of the industry doing blameless but critical things like cash management and trade finance for companies that fall outside the definition of narrow banking.What is more, any form of lending entails risk.
When One or Both Ps Mean "Ponzi" The P2P concept was originally sold to investors as a more democratic and socially-conscious, less exploitative and costly form of lending.
Some home equity loan customers do not understand that this form of lending involves a lien on their homes, just as a first mortgage does.
"The susu gives us a sense of, 'Yes, I can manage my own money.' It's a form of lending to ourselves, to each other.
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Consider informal loans, small business loans, micro-lending and other forms of lending.
Yet the firm was unafraid of pioneering new forms of lending.
Their data suggest that rising levels of mortgage debt are a better predictor of financial crises than surges in other forms of lending.
The savings in capital this allowed brought banks higher rates of return on mortgages than on other forms of lending across the rich world.
The big investment banks' exposure to privately arranged credit derivatives is estimated to be nearly as large as to their more traditional forms of lending.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com