FDIC Includes Section on Marketplace Lending in Quarterly Supervisory Insights Issue

The Federal Deposit Insurance Corporation (“FDIC”) recently published their quarterly Supervisory Insights, which included an in-depth section on Marketplace Lending (“MPL”). This write-up gave a broad overview of MPL in general, the importance of effective risk identification (including third-party, compliance, transaction, servicing and liquidity risk), and a supervisory perspective.

The FDIC explained that this discussion was “intended to heighten bankers’ and examiners’ understanding of marketplace lending and potential associated risks, including those arising in third-party arrangements.”

The FDIC also highlighted “the importance of a pragmatic business strategy that considers the degree of risk together with the potential revenue stream, and emphasizes the importance of banks exercising the same due diligence they practice whenever they extend credit to a borrower.”

If you would like to join SFIG’s Marketplace Lending Committee, please contact Alyssa.Acevedo@sfindustry.org.

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