Banking Law News

Banks May Need More Than Trump Push to Offer Small-Dollar Loans

Aug. 9, 2018, 11:03 AM

It may take more than encouragement from the Trump administration for banks to re-enter the market for small-dollar loans after a five-year absence.

Concerns over profitability and shifting political winds could keep banks on the sidelines even though the Treasury Department and the Office of the Comptroller of the Currency would like to see them in the game.

Questions about how to offer small-dollar, short-term loans profitably, but without the triple-digit annual percentage rates sometimes charged by payday lenders, present challenges for the banking industry. Banks are also worried that such loans could fall out of favor under a future...

To read the full article log in. To learn more about a subscription click here.