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U.S. banking regulators urge banks to offer small-dollar loans to struggling customers

WASHINGTON (Reuters) – U.S. bank regulators told banks Thursday they should strongly consider extending small-dollar loans to struggling people and businesses to help them make ends meet during the coronavirus pandemic.

In a joint statement, the regulators said banks are well-positioned to help struggling borrowers who are facing severe drops in revenue or income with short-term lines of credit. The statement is aimed at reassuring banks to do more short-term lending, after institutions largely abandoned the practice in recent years.

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