The repayment of borrowed money to some extent is dependent on the social attitudes and commitments of both the borrower and the bank. Briefly explain?

Social attitudes and commitments play a role in the repayment of borrowed money because they influence the borrower's sense of responsibility and willingness to fulfill their financial obligations. If a borrower values honesty, integrity, and keeping their word, they are more likely to prioritize repaying their debts. On the other hand, if a borrower lacks a strong sense of commitment or feels that they can easily walk away from their debts without consequences, they may be less motivated to repay what they owe.

Similarly, banks also have a role to play in shaping social attitudes towards borrowing and repayment. Banks that prioritize ethical lending practices and work with borrowers to find manageable repayment solutions can help foster a culture of responsibility and trust. Conversely, banks that engage in predatory lending practices or fail to provide adequate support to borrowers in financial distress may contribute to a negative attitude towards debt repayment.

Overall, the social attitudes and commitments of both borrowers and banks can impact the repayment of borrowed money by influencing individual behavior, shaping societal norms around financial responsibility, and determining the level of trust and cooperation between lenders and borrowers.