Unsecured property loans


  • Bad property loans
  • Inadequately secured commercial property loans

Incidence

Competitive pressure on banks during the 1980s, especially in the USA, forced them to increase their investment in higher risk loans on commercial property resulting in a building glut and a corresponding increase in bad loans.

Claim

  1. Loans on commercial property are emerging in the 1990s as the equivalent to the Third World debt problem of the 1980s.

Aggravates


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