There is a reason that is an old banker's adage. My response would be, why would you loan to me at 3 when you could invest at 10? The answer is risk. The banker knows how to calculate risk.
Banks are constrained in this regard. Money earmarked for lending cannot instead be invested by the bank.
There is a reason that is an old banker's adage. My response would be, why would you loan to me at 3 when you could invest at 10? The answer is risk. The banker knows how to calculate risk.