They make no economic rationale. If the bet goes wrong, the lender has no leg to stand on.
They are driven by greed (of borrowers and lenders alike)
They end up costing the tax payer
Their collateral is a mirage i.e. it doesn't really exist
They are lent to borrowers who won't ordinarily get any loans
Banks don't learn. KCB just had a case with Mugoya the other day. Remember warehouses that had been cleaned up?
One type of loan involves coercion. I can't decide which