Thread Starter: Chuck Copypaste
Title: Re: Customer is a lender
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Let me quote some RLC at you. This was an answer about banking a third party debt collector, but I think it arguably applies to banking an NBFI/lender too:
"First question I would ask is why is this [new customer] sitting on my doorstep when we are not known for banking such high risk customers. There would be two answers that make sense. one - they are brand new or two - they just got kicked out of their old bank. Both present unacceptable risks even if you do normally bank these sorts of businesses."
https://www.bankersonline.com/forum/ubbthreads.php/topics/2246286/how-would-we-do-this#Post2246286
And if you don't normally bank these sorts of businesses, thus, you lack the knowledge and ability to effectively monitor them, why would you consider accepting them as a new customer?
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