Too much credit leads to underwriting mistakes and mispricing of risks, as well as an overheated economy. Too little credit can choke an economy, as businesses can’t find adequate funding for expansion and consumers are unable to borrow against their future income to purchase cars and houses and to invest in education and training.
In the banking industry, integrity should be a palpable mark of distinction. By integrity I mean that board members do not make decisions just for a quick buck. It means board members are not solely transaction-driven; they are in for the long-term benefits of their companies as well as of their clients.