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Deposit Advance Products Pose No Safety and Soundness Issues

<u>Deposit Advance Products Pose No Safety and Soundness Issues</u>

As mentioned, the OCC and FDIC have actually prefaced their proposed tips of deposit advance items on security and soundness issues. But, there was small proof to offer the premise why these services and products pose any security and soundness dangers to the banking institutions that provide them. It is vital to note some banking institutions have actually provided deposit advance items for quite some time with small or no soundness and safety issues, therefore we are not sure regarding the foundation for the Agencies’ concerns over institutional safety and soundness. Close examination that is regulatory of items has yielded reasonably very good results and, notably, demonstrated that close working relationships between banks and regulators may result in the growth of wise and reasonable services and products. Continue reading Deposit Advance Products Pose No Safety and Soundness Issues