Commercial banks readily extend credit to MNEs, but hesitate to lend money to SMEs.

Name: Commercial banks readily extend credit to MNEs, but hesitate to lend money to SMEs.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Commercial banks often perceive lending to multinational enterprises (MNEs) as less risky due to their diversified operations and stronger financial positions, whereas small and medium-sized enterprises (SMEs) are seen as higher risk due to limited resources and market presence, leading to hesitation in extending credit to them.

Commercial Banks Readily Extend Credit to MNEs, but Hesitate to Lend