Bankers are known to be responsible and have a fantastic history of being responsible with others money. There are no reasons why a collection of individuals would make a bad decision which would impact other people 10, 20, or 30 years in the future for an immediate gain.
Bankers aren't in the business of underwriting risk, other than credit risk. However, mortgages typically require having property insurance as a condition for issuing the mortgage, so de facto, if the property is uninsurable, the bank isn't issuing a loan. The expert insurance and reinsurance underwriters have started raising rates or exiting some markets altogether, as well.
In Belgium, if you buy an appartment at the coastline using a business, the fiscal authorities dispute the tax deductability and depreciation (33y by default) if it is not at least on the second floor.