borrowers

Low credit borrowers won't repay, and higher credit borrowers can seek credit from other sources a much lower rates.

If a bank is lending out too much to borrowers, then its Capital Adequacy Ratio will get out of line and it will have to stop lending.

The bank charges interest to borrowers, and pays interest to depositors, and makes its profit off the margin.

They had to make most of their money by making loans directly to borrowers, instead of trading securities.

The borrowers were greedy, so they hired sharpers to help them borrow money they knew they couldn't repay.

Reserves are unconstrained as banks lend to each other after creating credit via deposits from borrowers.

If you care mostly about just dues or moral hazards, there are two sides to a bad loan: borrowers and lenders.

The key concern is all those borrowers with LTVs above 140% (about 5.2% of properties with a mortgage according to Zillow).

Yes, that's another important role - bringing together lenders and borrowers, for a fee.

The third party investors had no idea who the borrowers were or how trustworthy they were, they just trusted the rating agencies.

She then noticed him outside the branch talking animatedly to the borrowers, and realized something wasn't right, and stopped the finalization of the loan.

Instead they provide financing, they create new deposits for their borrowers.

I mean, historically, for basically all time, it was the job of banks to say "no" to borrowers who were not good credit risks.

Don't take my word for it; the Federal Reserve did a study on it: "Our results suggest that while strategic default is fairly common among deeply underwater borrowers, borrowers do not ruthlessly exercise the default option at relatively low levels of negative equity.

Banks borrow funds from their depositors (those with savings) and in turn lend those funds to the banks’ borrowers (those in need of funds)." Yes, there's the quibble about "demand deposits" vs other kinds of loans, but that doesn't really have anything to do with the expansion in the actual money supply.

Of the largest metro areas, markets with above average rates of deeply underwater homeowners include Las Vegas (3.8 percent), Chicago (3.8 percent), Atlanta (3.5 percent), Detroit (3.3 percent) and Miami (2.8 percent)" Almost half of the borrowers with negative equity have a LTV of 100% to 120% (8.2% in Q4 2014).