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Answer on Other Management Question for Alexander

Question #52991
Explain the measures that need to be taken to tame banks against charging high interest rates on loans especially in developing economies.
Expert's answer
Usury is the practice of making unethical or immoral monetary loans that unfairly enrich the lender. A loan may be considered usurious because of excessive or abusive interest rates or other factors.
In the United States, the primary legal power to regulate usury rests with the states. Usury laws are state laws that specify the maximum legal interest rate at which loans can be made. Each U.S. state has its own statute which dictates how much interest can be charged before it is considered usurious or unlawful.

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