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Why does rapid loan growth predict bad performance for banks?
[ad_1] By Rüdiger Fahlenbrach, Swiss Finance Institute Professor at the Ecole Polytechnique Fédérale de Lausanne (EPFL), Switzerland It is well known that credit booms usually end badly and are followed by poor economic performance. But it is less clear what is causing this poor performance. It could be explained by macroeconomic phenomena. With this in …