Banks must lend more to spur expansion

Commercial banks should lend more of the customers’ deposits they are sitting on to spur more investments and stimulate the economy. The banks have every reason to do so — the sharp drop in the risk profile of borrowers has made lending more worthwhile. If expert estimates are anything to go by, only 5.7 per cent of borrowers defaulted on their loans by the end of 2015, about a third of the risky bank customers in 2010.