1. lends more money or credit than is prudent or than a borrower can safely repay
Usage: third person singular present tense of 'overlend'; finance/banking context

Examples

• The bank overlends to risky borrowers and faces significant default rates.
• When a lender overlends without proper risk assessment, it can trigger a financial crisis.
• The mortgage company overlends to customers with poor credit histories.
• Regulators warn that the institution overlends relative to its capital reserves.
• During the boom, many banks overlends aggressively, contributing to the eventual collapse.