Why Is Bank Lending to Large Corporations More Difficult Than

question 50

Essay

Why is bank lending to large corporations more difficult than making loans to small or mid-size firms? What additional factors are involved? Do banks have some additional tools to help in assessing credit risk of large firms? What are some examples?

---

Definitions:

Sensations

The immediate and basic experiences generated from sensory stimulation.

Research Laboratory

A controlled environment designed for scientific experiments, research, and analysis in various fields of study.

Freud

Sigmund Freud, an Austrian neurologist best known as the father of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Aristotle

An ancient Greek philosopher and scientist, known for his contributions to a wide range of subjects including metaphysics, ethics, and biology.