WASHINGTON (Reuters) – U.S. bank regulators told banks Thursday they should strongly consider extending small-dollar loans to struggling people and businesses to help them make ends meet during the coronavirus pandemic.
In a joint statement, the regulators said banks are well-positioned to help struggling borrowers who are facing severe drops in revenue or income with short-term lines of credit. The statement is aimed at reassuring banks to do more short-term lending, after institutions largely abandoned the practice in recent years.
(Reporting by Pete Schroeder; Editing by Chizu Nomiyama)
