Regulators pressure banks to lend
Friday, February 5, 2010 | 1:57 pm
The credit crunch for small businesses has to end, regulators told banks Friday.
A statement from the Federal Reserve, Federal Deposit Insurance Corp. and a handful of other regulators verbalized a growing concern that banks have a choke hold on small business lending.
Among other remarks, the statements said regulators won't get in the way of small business lending.
According to the statement:
"Examiners will not discourage prudent small business lending by financial institutions, nor will they criticize institutions for working in a prudent and constructive manner with small business borrowers. Examiners will expect institutions to employ sound underwriting and risk management practices, maintain adequate loan loss reserves and capital, and take appropriate charge-offs when warranted."
Read the full text here.
A statement from the Federal Reserve, Federal Deposit Insurance Corp. and a handful of other regulators verbalized a growing concern that banks have a choke hold on small business lending.
Among other remarks, the statements said regulators won't get in the way of small business lending.
According to the statement:
"Examiners will not discourage prudent small business lending by financial institutions, nor will they criticize institutions for working in a prudent and constructive manner with small business borrowers. Examiners will expect institutions to employ sound underwriting and risk management practices, maintain adequate loan loss reserves and capital, and take appropriate charge-offs when warranted."
Read the full text here.
Know a small business you think we should write about? Contact Herald writer Amy Rolph at arolph@heraldnet.com.
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