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Safety and Soundness Concerns in FDIC Payday Lending Guidance Clearly

Question 38

Multiple Choice

Safety and soundness concerns in FDIC Payday Lending Guidance clearly mention that there should be adequate capital as Minimum capital requirements are not enough to offset the risks of payday loans. Banks should hold capital against its subprime portfolio in amounts:


A) That are 1½ to 5 times greater than normal
B) That are 1½ to 3 times greater than normal
C) That are 1½ to 3 times lower than normal
D) That should be between 2-5 in comparison to normal

Correct Answer:

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