Two bank trade organizations are urging the Federal Deposit Insurance Corporation to revise its proposed rules for determining whether a bank participation in a real estate project should be considered an investment or a loan.

The American Bankers Association and the Independent Bankers Association of America are concerned that an incorrect classification of a loan as a direct investment would unduly hamper credit in a faltering economy.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.