A case before the Guam Supreme Court could make it significantly more difficult for institutions to extend credit in states and territories where they do not have offices.

A lower court in the western Pacific territory ruled in August that banks must obtain business licenses to make loans to Guam residents, even if they do not maintain a branch there. Institutions that fail to get licenses forfeit their right to foreclose on properties, the court said.

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.