CBA: Consumers Need Small-Dollar Loans, Banks Need Clarity on Rules

March 26, 2020
Nick Simpson

CBA: Consumers Need Small-Dollar Loans, Banks Need Clarity on Rules

“Banks are ready, eager and already working with Americans and small-businesses. The flexibility regulators have given, combined with their statement today, will help banks more readily adapt to meet consumer demands.”

 

WASHINGTON – Consumer Bankers Association President and CEO Richard Hunt issued the following statement after prudential regulators jointly encouraged banks to make small-dollar loans available to consumers:

 

“Americans do not have the funds to cover emergency expenses and the longer hourly workers go without regular pay or small businesses are forced to shut their doors, the more exacerbated the problem will become. Previous guidance issued by regulators years ago cut off banks’ ability to offer customers short-term liquidity.

 

“During this pandemic, banks are ready, eager and already working with Americans and small-businesses in need. The flexibility regulators have given, combined with their statement today, will help banks more readily adapt to meet consumer demands.

 

“It is clear, however, that millions of Americans needed short-term financial assistance before coronavirus and will continue to need it after the immediate impact is over. We look forward to regulators issuing joint guidance in the near future.”

 

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About the Consumer Bankers Association:

The Consumer Bankers Association represents America’s leading retail banks. We promote policies to create a stronger industry and economy. Established in 1919, CBA’s corporate member institutions account for 1.7 million jobs in America, extend roughly $4 trillion in consumer loans and provide $275 billion in small business loans annually. Follow us on Twitter @consumerbankers.