Belt and suspenders,
Definition of Belt and suspenders:
A conservative approach to lending. A bank that takes a belt and suspenders approach is extremely cautious in making loans. More generally, this term is used to describe any attempt to avoid risk through redundant safety procedures, such as wearing both a belt and suspenders.
It is based on the idea that wearing a belt and suspenders gives the user two redundant methods for holding up their pants. By analogy, cautious bankers will seek redundant layers of risk mitigation when deciding whether to extend loans to their clients.
In finance, “belt and suspenders” is a colloquial phrase used to describe conservative lending practices. .
How to use Belt and suspenders in a sentence?
- Depending on the context, it can have either positive or negative connotations.
- The phrase “belt and suspenders” is used to describe conservative lending practices.
- Lending standards generally fluctuate over time, becoming stricter following periods of stress such as the 2007-2008 financial crisis.
Meaning of Belt and suspenders & Belt and suspenders Definition