Can a bank get a line of credit from another bank for its customer in case of default?
We've not heard of this. First, banks won't know when they will be determined to have failed. It isn't up to them, and the regulatory agency that handles this isn't going to tell them. Plus, the bank will want to hope that they'll continue on in business. Lastly, if a borrower has credit approved at one bank, that bank won't want to give up a good borrower to another and that second bank won't want to depend on the first banks loan approval. If a borrower felt that there were problems with the bank, they'd be wise to verify that condition and perhaps obtain their line of credit elsewhere.
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We've not heard of this. First, banks won't know when they will be determined to have failed. It isn't up to them, and the regulatory agency that handles this isn't going to tell them. Plus, the bank will want to hope that they'll continue on in business. Lastly, if a borrower has credit approved at one bank, that bank won't want to give up a good borrower to another and that second bank won't want to depend on the first banks loan approval. If a borrower felt that there were problems with the bank, they'd be wise to verify that condition and perhaps obtain their line of credit elsewhere.
