noun
- the practice of lending more money than is prudent or sustainable, often leading to financial risk or default
Usage: commonly used in finance and economics contexts
verb
- to lend more money than is advisable or than a borrower can reasonably repay
Usage: present participle or gerund form of 'overlend'
Examples
- The bank was criticized for overlending to subprime borrowers during the housing boom.
- Overlending practices contributed significantly to the 2008 financial crisis.
- Regulators are now monitoring overlending to prevent another economic collapse.
- The lender's overlending strategy put many families at risk of foreclosure.
- Financial institutions must avoid overlending to maintain stability.
- Overlending without proper risk assessment can devastate an economy.