Lending limits protect the safety and soundness of national banks, promote diversification of loans, and help ensure equitable access to banking services. These limits prevent excessive loans to one person, or loans to related persons who are financially dependent.
The lending limits regulation (12 CFR 32) applies to all loans and extensions of credit made by national banks and their domestic operating subsidiaries.
See Also
Q.16 Why might the bank lending chann... [FREE SOLUTION]Pandemic at 3 Years: How Our Financial Lives Have Changed - NerdWalletWhy Did Small Business FinTech Lending Dry Up During the COVID-19 Crisis?How COVID-19 has sped up digitization for the banking sectorReferences
Exception to Lending Limits for OPIC-Insured Standby Letters of Credit Issued by National Banks (PDF) (BC 78, October 1976)
Covers a proposal to provide political risk insurance for standby letters of credit for construction firms doing business in the Middle East
