So your argument is: banks are immoral for doing X, therefor you can do it right back and it's ok? Two wrongs and all that...
No - my argument is that in a contract, either party can only expect to be bound as far as he binds himself. Since banks absolutely do not consider contracts to be a moral issue, but rather a bottom line issue, it is only fair that people they deal with treat them the same way.
Contracts with any large business are about economic exchange, not morals. The people you will deal with personally, nice as they are, do not act for themselves.
Now, if he had borrowed from a friend or someone else who loaned the money in his own right, and they had both established a personal relationship, a moral obligation would clearly attach.
It's a mistake to equate borrowing from the bank to borrowing from someone you personally know.