This is not merely ignorance, it is deep, abysmal even, total failure to grasp even the smallest of clues.
Raising the rate of return on principal is the driving force that starts the economic engine, and it is carefully managed after that so that it does not rise too rapidly, nor should it be allowed to sink back to an uneconomic level which would damp down lending business activity altogether again. There is a golden point at which the economic activity proceeds at an optimal pace, which good management should strive for at all times, leaving much of the actual regulation to the free market.
Left to their own devices, banking officers maintain the sanctity of making sound loans, unless there is pressure that many very bad loans be made for some nebulous social objective, as has happened under much of the regulation that have been heaped upon the business community by executive fiat.
By “slay them” I did not mean we would not have a banking system.
Only that we would not have an all-powerful central bank that is able to engage in these machinations.
Individual bankers on their own are capable of making sound lending decisions. Probably even more so than if they are taking marching orders from some central authority with multiple hidden agendas.
You are correct Sir! People (in the gubmint) need to go to jail for creating the “housing crisis”, but I digress.