Do banks loan money?
There is an obvious and important difference between bank ‘loans’ and typical personal loans, viz., that banks charge interest in order to make a profit. Accordingly, what banks do is more accurately described as selling or renting money than as loaning money. Moreover, it is advantageous to banks m...
| Main Author: | |
|---|---|
| Format: | Electronic Article |
| Language: | English |
| Check availability: | HBZ Gateway |
| Journals Online & Print: | Drawer...
|
| Fernleihe: | Fernleihe für die Fachinformationsdienste |
| Published: |
Springer Science + Business Media B. V
1982
|
| In: |
Journal of business ethics
Year: 1982, Volume: 1, Issue: 3, Pages: 249-250 |
| Further subjects: | B
Personal Loan
B Economic Growth |
| Online Access: |
Volltext (JSTOR) Volltext (lizenzpflichtig) |
| Summary: | There is an obvious and important difference between bank ‘loans’ and typical personal loans, viz., that banks charge interest in order to make a profit. Accordingly, what banks do is more accurately described as selling or renting money than as loaning money. Moreover, it is advantageous to banks misleadingly to describe their activity as loaning. For this assimilates their activity to the case of personal loans and helps to create an impression that banks do us a favor by loaning us money and that we owe them gratitude for so doing. Since these impressions are false, banks ought cease to describe what they do in this way. |
|---|---|
| ISSN: | 1573-0697 |
| Contains: | Enthalten in: Journal of business ethics
|
| Persistent identifiers: | DOI: 10.1007/BF00382777 |