A group of federal financial regulators and the Conference of State Bank Supervisors issued a statement last week to encourage small business lending. The agencies recognize the recent stymied flow of lending, and the broader economic effect caused by small businesses with no credit access. The statement may encourage small business owners, who are currently not optimistic about the future of lending.
The regulators attempted to ease reluctance by stating that they will make no supervisory criticism on the basis of a review of financial condition, should the lender be able to prove the process comprehensive. Regulators also urged lenders to consider each application on an individual basis, focusing on longevity and risk management, rather than generalizing by industry or geography.
Regulators emphasized that, should an institution wish to lend to a small business, lenders will do so with the full backing and encouragement from its supervisors.
A full list of the regulatory agencies involved in the statement follows:
- Board of Governors of the Federal Reserve System
- Federal Deposit Insurance Corporation
- National Credit Union Administration
- Office of the Comptroller of the Currency
- Office of Thrift Supervision
- Conference of State Bank Supervisors
Click here to read a pdf of the statement.
Similar Posts:
- What Do “We” Want from Regulation/Regulators?
- Small Georgia bank under regulatory scrutiny
- SBA Lending on Rebound; Doubles in Q4 2009
- SunTrust invests in small minority-owned bank
- Claiming the Small Business Health Care Credit
Post Comment