Question

Why is loophole mining so prevalent in the banking industry in the United States?

Short answer

In the banking industry in the United States, loophole mining has become so common due to the fact that it is one of the most heavily regulated industries in the nation.

Step-by-step solution

Concept Introduction

Loophole mining refers to a situation where bankers or other financers try to avoid or get away with the rules and regulations set up by the government, in a legally and ethically bounded way.

Explanation 

Loophole mining is so prevalent in the United States banking industry because banks occupied loophole mining to keep away from regulatory constraints that control their ability to receive profit. It escalated the cost of funds from the higher interest rate.

Explanation 

This gives banks motivation to track down provisos in the framework to sidestep guidelines that block their productivity.