Does FCA expect System lenders to take competitive market rates into consideration when they set interest rates?
Yes. Appropriate loan pricing is critical to the safety and soundness of System lenders. We expect institutions to consider their cost of funds, reserve needs, and capital requirements and to support loan pricing decisions with documentation of their competitive environment. Most often that documentation should include surveys of competitors’ rates. How does FCA respond to complaints about unfair competition? In reviewing allegations of unfair pricing, typically we will contact the System institution in question and discuss the nature of the complaint. Without specifically identifying the commercial bank, we ask the institution to respond to the allegations. We also obtain information regarding the System institution’s loan pricing and loan policies and conduct other interviews, as necessary. We review the specifics of the allegation to evaluate whether the loan pricing is consistent with the institution’s loan pricing policy and whether there are any safety and soundness concerns. We
Related Questions
- Isn it inevitable that the proposed health care system would be less efficient because it would stifle the competitive, free market system?
- Do all of these lenders offer competitive rates? Or is a students hand really forced to accept exploitive terms?
- Can you suggest any mortgage lenders that offer a 95% or 90% LTV mortgage with competitive rates?
