Slideshow ‘Before hitting the panic button…’: Comments of the week

  • October 19 2017, 5:09pm EDT
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Readers weigh in on online lending growth, how President Trump’s healthcare policies affect lenders, regulation’s effects on community banks and more.

On the implications of the sharp growth in online lending volumes:

“Before hitting the ‘systemic risk’ panic button, it would be well to address the many thoughtful issues raised by Ms. Clozel In her article. We are a long way away from online lenders disintermediating the traditional banking system. Let's not stifle innovation with alarmist rhetoric.”

Related: Could online lending become the next systemic risk?

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On the consequences for lenders from President Trump's recent health care orders:

“You seem to forget that the government does not give away anything that it does not first take away from someone else, including preferred credit risks that might include millennials who pay heavily for care that most of them won’t/can't use. Further, having health coverage is not a guarantee that a person would not go bankrupt due to a medical related financial problem.”

Related: How Trump's health care moves could impact lenders

On credit reporting accuracy also coming under fire in the wake of the Equifax hack:

“Huge opportunity will arise around credit/identity 2.0." (Via Twitter)

Related: Beyond the breach: Credit reporting accuracy also under fire

On describing the annual percentage rates for a deposit advance:

“Why does the article describe an annual percentage rate applied to a credit that is repaid in a month? What relevance does that have? The customer wants to know how much it costs, which can be quoted in dollars. Small dollar credits are more appropriately paid for by fees, which the article later recognizes.”

Related: U.S. Bancorp mulls return to deposit advance after OCC gives green light

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On regulatory policies seen as accelerating the decline of community banks:

“Smaller businesses & low to moderate income consumers suffer the most from less competition, and fewer choices.”

Related: Don’t let community banking go from endangered to extinct

On plans for federal regulators to move forward in finalizing the Net Stable Funding Ratio:

“Hard to find anything that the NSFR provides in the way of safety and soundness that is not already covered by the host of other regs already in effect. Finalizing what is one of the oldest of Basel projects feels like going back to finalize the Basel II capital rules after having put Basel III in place. NSFR is bronzing the gold-plating.”

Related: Defying industry, regulators plow ahead with long-term liquidity rule