Want A Better Loan From A Bank? Rob It!
September 22, 2015 in Daily Bulletin
The Economist seemingly encouraged bank robberies, pointing out all the benefits they bring:
- After banks are robbed, loan officers sanction the same number of loans, but offer better terms for each loan.
- Interest rates are lower, and borrowers have 70% more time to pay the loans.
- They do require more collateral but for the honest bank thief who truly intends to pay back their loan this isn’t much of a problem.
- The reason seems to be that offering better loans means that nervous or traumatized loan officers have to spend less time haggling over terms with each new customer.
- The higher collateral means that loan officers also have to spend less time vetting customers.
- The effect is only seen when bank robberies are violent. Non-violent ones don’t lead to the same sort of traumatized avoidance behaviour.
- The effect lasts about 90 days.
Read more about the study that found the effect, and other details here.
Source: The Economist
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