That makes sense—the loan is secured by a tangible asset that will retain some value if the borrower defaults—but it can also lead to overlending.

这其中确有道理，贷款是以某种一旦借款方违约，仍将保留部分价值的有形资产作为担保，不过它也可能导致过度放贷。

youdao

In recent months, they have pulled on one lever after another in an attempt to stop the overlending and overinvestment that threaten to destabilise the economy.

ECONOMIST: Other reasons to worry