Corp loan share in non-food credit slips: Wilful defaulters up funding costs

“Wilful defaults if unchecked would increase the cost of borrowing for everyone else, including genuine businesses with profitable investment opportunities before them,” said the survey. “In fact, at high enough credit spreads, adverse selection may force genuine borrowers to exit the market altogether, leaving only cronies in the market and resulting in a market failure that slows economic growth, employment and wealth creation capacity.”

from Banking/Finance-Industry-Economic Times https://ift.tt/36LGNbF