Commercial loan underwriting standards concern regulators

06/12/2013 | Wall Street Journal, The

Regulators are questioning banks about loans to businesses, worrying that banks have made the terms too easy and that the loans could go into default if the economy weakens, sources say. "While some loosening of underwriting standards is generally appropriate given the strong tightening and pullback that occurred in the aftermath of the financial crisis, we do not want to see the lax practices re-emerge that led to the crisis," said Stephanie Collins, a spokeswoman for the Office of the Comptroller of the Currency.

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Wall Street Journal, The

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