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One of the factors contributing to the 2008-2009 recession was the unwillingness of commercial banks to...

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Finance

One of the factors contributing to the 2008-2009 recession wasthe unwillingness of commercial banks to extend loans to customers,some of whom were quite creditworthy. This unwillingness led towhat was called a "credit crunch." Discuss reasons why banks wouldbecome reluctant to extend credit to customers, and how thefinancial reporting system represents these loans on the banks'financial statements.

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The financial crisis of 2008 has made commercial risk averse for few years and therefore they started to become reluctant for extending loans to even individuals and businesses with good credit    See Answer
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One of the factors contributing to the 2008-2009 recession wasthe unwillingness of commercial banks to extend loans to customers,some of whom were quite creditworthy. This unwillingness led towhat was called a "credit crunch." Discuss reasons why banks wouldbecome reluctant to extend credit to customers, and how thefinancial reporting system represents these loans on the banks'financial statements.

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