FDIC: Interagency Lending Principles for Offering Responsible Small-Dollar Loans

June 5, 2020

Board of Governors of the Federal Reserve System
Federal Deposit Insurance Corporation
National Credit Union Administration
Office of the Comptroller of the Currency

The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance
Corporation, the National Credit Union Administration, and the Office of the Comptroller of the
Currency (collectively, “the agencies”) are issuing these principles to encourage supervised
banks, savings associations, and credit unions (collectively, “financial institutions”
1) to offer responsible small-dollar loans to customers for both consumer and small business purposes. The agencies recognize the important role that responsibly offered small-dollar loans can play in helping customers meet their ongoing needs for credit due to temporary cash-flow imbalances, unexpected expenses, or income shortfalls, including during periods of economic stress, national emergencies, or disaster recoveries. Well-designed small-dollar lending programs can result in successful repayment outcomes that facilitate a customer’s ability to demonstrate positive credit behavior and transition into additional financial products. The agencies offer these principles due to the evolving conditions and products in the small-dollar loan markets over the last several years.

For the complete announcement, please see this link: