Exclusive: U.S. is considering measures to boost lending to low-income Americans – source

FILE PHOTO: One hundred dollar notes are seen in this photo illustration at a bank in Seoul, South Korea, January 9, 2013. REUTERS/Lee Jae-Won/Illustration/File Photo

WASHINGTON (Reuters) – U.S. regulators are considering issuing guidance that would encourage lenders to offer loans to low-income individuals and to provide leniency on some repayments amid the coronavirus pandemic, an official within a banking agency told Reuters.

The federal banking agencies are looking at a number of tools to address liquidity issues as fears mount over the economic impacts of the virus, the source said.

The agencies are considering issuing guidance and perhaps offering credits to lenders through the Community Reinvestment Act to encourage lending to low-income individuals. The government is also considering encouraging banks to provide leniency on repayments of loans including mortgages and automobile loans, the official said.

Reporting by Chris Prentice; Editing by Chizu Nomiyama

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