Regulatory Alerts2021-12-29
Supervisor of Banks: Proper Conduct of Banking Business - Consumer Credit Management
The Supervisor of Banks issued Directive 311A to establish minimum requirements for banking corporations regarding the responsible management and marketing of consumer credit. The directive mandates that boards and senior management implement strategies ensuring fair conduct, rigorous borrower affordability assessments, and strict controls over initiated credit marketing activities. It further requires comprehensive underwriting procedures, robust technological systems for credit decision-making, and specific protections for disadvantaged populations and unsolicited marketing scenarios.
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