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Banks can't meet capital requirements for lower than prime lending or aren't willing to do it.

This leads to a segment of the population (usually lower income, but not always) without broad access to credit or leverage.



So? If they cannot afford to pay a reasonable interest rate on the money, could they even really afford to pay it back at 0%, or even negative?


There are certainly segments of this population that can afford to pay back a loan. Or there is a loan that can be structured so that this segment of customer can pay it back. Its just not profitable or efficient for a bank to lend in this segment as a whole currently.




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