To recover from the current crisis, we’ll need to think about the bigger picture and to think about other people too. And right now, I’m talking about banks. Banks need to remember the past and specifically the last financial crisis. Banks need to realize that their whole business model is based on lending money to people and those people being able to pay back those loans. However, on a lockdown, people and businesses may not be able to pay back the loans they took or the credit card debt they accumulated when times were good.
In some countries in Europe, banks are postponing loan payments and credit cards debts due to the coronavirus, for a few months. Needless to say that this is rather helpful for people and businesses. Why would banks do that? Not only to help people, but to help themselves too. If they don’t, many people and businesses won’t be able to pay their debts and could go bankrupt. If they go bankrupt, banks will end up with loads of bad loan portfolios and ding ding ding! just like 12 years ago, they will run to the Government to bail them out. But bail out money may not be available due to healthcare costs , and this time around the whole banking system may go to shit.
So banks(and other corporations) let’s forget about greed being good for a few months and let’s save the world.