Rates Valid on Bank Loans Sold to Fintechs, Investors, FDIC Says

The Federal Deposit Insurance Corp. has approved a final rule affirming that interest rates on bank loans remain valid when sold or assigned to investors or fintech business partners.

The FDIC rule approved by a 3-1 vote Thursday is meant to settle market uncertainty over the validity of loans made through bank partnerships with online lenders, as well as loans sold to nonbanks and investors.

It will also help banks better manage their liquidity, particularly in times of financial stress, the FDIC said.

“Banks and financial institutions rely on a robust secondary market to manage exposure,” FDIC Chairman Jelena McWilliams ...