The Office of the Comptroller of the Currency has made it tougher for states to cap interest rates charged by interstate branches.

In an interpretive letter issued Tuesday, the agency said national banks must adhere only to those interest rate restrictions imposed by the state where they are headquartered, provided the bank makes at least some key lending decisions in that state. They do not have to abide by interest rate caps imposed by other states where they have branches.

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.