The Federal Deposit Insurance Corporation has launched a web-based survey of approximately 2,000 randomly selected FDIC-insured banks regarding their small business lending practices. This comes right after the Consumer Financial Protection Bureau revelation that small business lending is likewise on their rulemaking plan.
In May 2016, the Consumer Financial Protection Bureau publicized that it was in the very early tiers of putting into practice section 1071 of the Dodd Frank Act that modifies the Equal Credit Opportunity Act to require financial institutions such as banks, credit unions or lenders to report facts regarding credit applications made by minority-owned, women-owned and small businesses.
At the end of June 2016, the Federal Deposit Insurance Corporation issued a press release publicizing their survey. As its underlying principle, the Federal Deposit Insurance Corporation states that “small business lending is a significant want that banks and credit unions help meet their community’s requirements, particularly for lots of banks that usually focus on business rather than consumer lending…
Despite the significance of small businesses to the whole economy of United States and the significance of lending from bank to small businesses, there is somewhat high quality information on small business lending by banking institutions. The FDIC Small business Lending Survey is planned to help fill on this information gap.”
The survey additionally consists of questions regarding customer transactions that are responsive to a Congressional edict to learn even more regarding the efforts of banking institution to bring unbanked people into the traditional funding arrangement. The responses to the survey are due on August 10, 2016.
The main objective of this survey is to offer a closer insight into many features of small business lending, including national scale representative data on the overall traits of small business borrowers, the sorts of credit score sought and provided, and the relative significance of small business lending to different sizes of banking institutions, locations and business models.
The survey is formulated into six sections;
- Questions regarding the 2015 small business borrowers at the surveyed FDIC-insured banks
- Questions about the 2015 overall loan originations of the surveyed FDIC-insured banks
- Questions about industrial and commercial loan originations of the organization in 2015
- Questions regarding outstanding industrial and commercial loans reported at the institutions call report in 2015
- Questions about the small business industrial and commercial competition, practices and applications” for the surveyed FDIC-insured banks
- Customers account services and rules.