Reputational risk is presented by negative news protection and general public scrutiny of DAP loans.

Reputational risk is presented by negative news protection and general public scrutiny of DAP loans.

Proposed Supervisory Guidance

The overall approach associated with proposed Supervisory Guidance would be to give attention to security and soundness dilemmas, leading to big component through the lack of conventional credit underwriting regarding DAP loans, as well as the compliance that is potential with applicable customer security legislation and laws. The proposed Supervisory Guidance specifies the Agencies’ requirements for banks engaging in such lending activity after reviewing those concerns. (viac…)