Why do bankers and merchants reluctantly lend money and give credit when credit began?

Bankers and merchants were initially reluctant to lend money and extend credit due to the inherent risks involved, such as the potential for borrower default and the uncertainty of repayment. Additionally, the lack of established credit systems and reliable information about borrowers made it difficult to assess creditworthiness. Concerns about liquidity and the impact on their own financial stability also contributed to their cautious approach in extending credit. Over time, as systems for evaluating creditworthiness improved, lending practices evolved, leading to greater acceptance of credit.