Intercontinental Bank is a well established bank in the financial sector with significant consumer and small business loans. The Bank believes that the construction sector in your jurisdiction is carded to pick up soon especially in this pandemic and intend to move into lending to construction companies financing luxury homes. Intercontinental Bank intends to change its business model and focus on corporate lending to construction firms. Given the current economic climate why it may or may not be an appropriate move for Intercontinental Bank to concentrate its lending portfolio in luxury construction
Intercontinental Bank is a well established bank in the financial sector with significant consumer and small business loans. The Bank believes that the construction sector in your jurisdiction is carded to pick up soon especially in this pandemic and intend to move into lending to construction companies financing luxury homes. Intercontinental Bank intends to change its business model and focus on corporate lending to construction firms. Given the current economic climate why it may or may not be an appropriate move for Intercontinental Bank to concentrate its lending portfolio in luxury construction
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Intercontinental Bank is a well established bank in the financial sector with significant consumer and small business loans.
The Bank believes that the construction sector in your jurisdiction is carded to pick up soon especially in this pandemic and intend to move into lending to construction companies financing luxury homes. Intercontinental Bank intends to change its business model and focus on corporate lending to construction firms.
Given the current economic climate why it may or may not be an appropriate move for Intercontinental Bank to concentrate its lending portfolio in luxury construction.
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