The same product carries the same price—except for a loan. Due to risk premiums, some borrowers pay more than others for the same loans to protect lenders from the possible consequences of high-risk lending. The current approach ignores that paid instalments reduce the risk over time. After full payment of the principal the risk is reduced to zero. Is it time to rethink this process to ensure that human rights are not violated and resources are rerouted to meet pressing needs?
The global economy is caught up in a vicious spiral of worsening financial conditions spawned by the pandemic. Many developing economies were lumbered with high debt loads before COVID-19, but the crisis has greatly aggravated their crippling debt situations. As millions of people teeter on the brink of extreme poverty levels, what are the three weakest gaps in the international debt architecture, and how can they best be patched up?
When we think of tax fraud in banking, we often don’t consider its far-reaching consequences, including its impact on the human rights of the residents of the states in which it occurs and beyond. By diverting public funds away from where they are needed most, sophisticated tax-avoidance schemes facilitated by banks make the quality of life of affected people that much worse. What must banks do to meet their obligations to the general public?