FASB Mulls New Bank Lending Rules

The Financial Accounting Standards Board is considering rules that may force banks to reveal when they give clients below-market rates on loans to secure further business.

The Financial Accounting Standards Board is considering rules that may force banks to reveal when they give clients below-market rates on loans to secure further business, Financial Times reports. The proposed regulation may expose cases in which big U.S. banks use their balance sheet to secure lucrative investment banking business. The new rule will ban lenders from tying the availability or terms of credit to the purchase of other products and services. Banks could still respond to requests from customers.

Click here for the story from Financial Times.