In a recent article, CEOs of large banks supported government interest rate caps. In contrast, Republicans opposed the caps. The articles also discuss the Financial Crisis Inquiry Commission and the rise of fintech. These articles provide important information about the current debate on government regulation of large banks.
Dems support government interest rate caps
A new poll shows that a majority of registered voters support a federal interest rate cap. The measure may be able to pass the House this year. The Center for Responsible Lending commissioned the poll. The center advocates that lenders provide better consumer protections by putting a cap on interest rates.
Currently, there are 18 states that have a cap of 36% on payday loans. Other states have passed similar legislation. Several major bank CEOs have said they support government interest rate caps. However, others within the financial industry have spoken out against it. Opponents claim that a cap would cut off access to credit for consumers.
Republicans oppose government regulation of salaries of NBA players and famous actors
A new survey shows that a majority of Republicans oppose government regulation of salaries for NBA players, famous actors, and CEOs. While most Democrats support government regulation of salaries, nearly seven in 10 Republicans oppose it. Republicans also are more likely than Democrats to say that famous actors and athletes are overpaid.
The Financial Crisis Inquiry Commission
A recent poll found that the majority of Americans support limiting interest rates, but only minority support removing the caps. For example, 47% of Americans don’t believe that limiting rates will make it harder for low-income households to get a loan. But the opposite is true for African Americans and Hispanics, who believe that limiting interest rates will limit the ability of low-income families to get loans.
The national rate is the average rate paid by all insured depository institutions. The cap is a percentage of that rate. In the US, that means that an institution must charge at least one and a half percent higher than the national rate.
The rise of fintech
Consumer finance regulators have fought to protect consumers by reining in high-cost lending partnerships. But the rise of Forbrukslån – Søk Hos 25 Banker Med Kun 1 Søknad ~ Finanza fintech companies is causing problems of its own. Many fintech firms are predatory, and regulators have given them a great deal of latitude. The rise of these companies has led to a battle over the dual banking system. This battle will have far-reaching consequences for consumer finance in the U.S.
The rise of fintech companies has also caused consumers to seek alternatives to traditional banks. For example, consumers can use online installment loans, which have a longer repayment period than payday loans but are charged at high-interest rates. These types of loans are referred to as digital credit or alternative finance. These loans are obtained from nonbank companies, which are also called shadow banks. While these companies are a boon for consumers, they have their limitations, including high-interest rates.