A major cause of the 2008-2010 banking crisis was the neglect of banks to seriously scrutinize loan applicants for creditworthiness.

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Subprime lending, where banks extended loans to borrowers with poor credit histories, played a significant role in the banking crisis. Banks were criticized for not thoroughly assessing the creditworthiness of borrowers and approving loans that borrowers could not afford to repay, leading to a high number of defaulting borrowers and ultimately the collapse of numerous banks.

A Major Cause of the 2008-2010 Banking Crisis Was the Neglect