Protection and Soundness Dilemmas

Levels provided the dangers inherent in payday financing, levels of credit in this type of company pose an important security and soundness concern. Into the context of the instructions, a concentration would be understood to be a amount of payday advances totaling 25 % or even more of the bank’s Tier 1 capital. Where levels of payday financing are noted, bank administration must be criticized for a deep failing to diversify dangers. Examiners will continue to work with organizations on a basis that is case-by-case determine appropriate supervisory actions required to deal with levels. [Read more…]