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U.S. banking regulators urge banks to offer small-dollar loans to struggling customers

Published 03/26/2020, 12:04 PM
Updated 03/26/2020, 12:05 PM
© Reuters.

WASHINGTON (Reuters) - U.S. bank regulators told banks Thursday they should strongly consider extending small-dollar loans to struggling people and businesses to help them make ends meet during the coronavirus pandemic.

In a joint statement, the regulators said banks are well-positioned to help struggling borrowers who are facing severe drops in revenue or income with short-term lines of credit. The statement is aimed at reassuring banks to do more short-term lending, after institutions largely abandoned the practice in recent years.

Latest comments

well maybe if interest rates had not been near zero for 10+ years people would have actual savings accounts and not need to take out loans and be unable to survive during any financial adversity...have conditioned everybody to waste their money on the latest iphone they cannot afford. it's okay though fed with just hyper-inflate the currency even more
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