Markets News 

Personal loans surge to a record $138 billion in US as fintechs lead new lending charge

“Last year, fintech companies issued 38 percent of all U.S. personal loans, according to TransUnion” writes Kate Rooney for cnbc.com. The unsecured personal loan market hit an all-time high last year, surging 17 percent year over year to a total $138 billion, according to data from TransUnion released Thursday. While their market share shrank, they still saw overall growth in total loan balances, according to Laky.Banks’ market share however, is heading in the other direction.Traditional banks’ share of those loans is down to 28 percent from 40 percent five years…

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News 

TBC Bank profit rises on lending growth

“For 2018 overall, TBC said its net profit rose to GEL437.4 million from GEL359.9 million in 2017” writes Adam Clark for marketwatch.com. The London-listed lender, which is Georgia’s largest bank, said its quarterly net profit came to 130.1 million Georgian lari ($48.9 million), up 35% from the year-earlier quarter. TBC reiterated its medium-term targets, including loan book growth of around 10% to 15%, and a return on equity of above 20%.TBC’s gross loans and advances to customers rose 7.8% in the quarter to GEL10.37 billion.Its return on equity improved to…

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Crypto News Platforms 

Financial Firm Offers ‘Almost Instantaneous’ Loans Up to $30,000 With Crypto as Collateral

“A financial company is giving crypto holders the opportunity to take out cash loans while using their digital assets as collateral” writes Connor Blenkinsop for cointelegraph.com. Meanwhile, YouHodler believes its product helps traders leverage their crypto portfolio with additional cash in order to buy further digital assets.Six cryptocurrencies are accepted as collateral, including Bitcoin, Litecoin, Ethereum, XRP, Bitcoin Cash and BSV. Others, including XLM, Dash and ZCash, are said to be in the pipeline. Instead, the platform wants to adopt a more user-friendly, fast and sustainable approach than old-fashioned institutions…

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Markets News 

The risky ‘leveraged loan’ market just sunk to a whole new low

“The leveraged loan market just set a new record: The quality of investor protections in this market just hit a new all-time low” writes Jim Edwards for businessinsider.com. Leveraged Commentary & Data/S&P Global Market Intelligence In Europe, the situation was even worse. 87% of leveraged loans were “cov-lite.”. Leveraged Commentary & Data/S&P Global Market Intelligence Last year, $452 billion in new cov-lite issuance was added to the market.A leveraged loan is risky because it is “leveraged” against the private-equity group’s money and its ability to turn a struggling company around…

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News 

Alt Lender Fountainhead Secures SBA Loan License

“Small Business Administration (SBA) loans have found a new avenue through which they can reach small businesses” reports pymnts.com. A press release issued on Wednesday (Feb. 13) said that alternative lender Fountainhead Commercial Capital can now offer SBA loans through its platform after securing a Small Business Lending Company (SBLC) loan program license from American Business Lending.The recent government shutdown forced the Small Business Administration to stall its lending operations.The company noted that it has also received final approval from the SBA. According to Fountainhead, the SBA has only issued…

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Markets News 

The riskiest part of the corporate debt market is inching toward a historic danger signal

“Those three charts all suggest that the corporate debt market is becoming bigger and riskier as time goes by” writes Jim Edwards for businessinsider.com. But the market for the riskiest type of risky corporate debt — leveraged loans — remains at an elevated level.Last year, the multiple of leveraged-buyout debt to earnings hit 5.8, its highest since the financial crash, according to LCD/S&P, a research organization that monitors the corporate debt market.Leveraged buyouts are among the riskiest debt deals in the corporate credit market.But 12% to 16% of all companies…

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News 

This start-up is bringing fast home equity loans to your smartphone bank app

“A Silicon Valley start-up is rolling out software that allows customers of lenders including U.S. Bank and Wells Fargo to apply for home equity loans through their banking apps while shaving weeks off the process” writes Alex Flynn for cnbc.com. “The way it used to be was that people had to fill out a paper form or work with a loan officer to get the home equity process started,” Ghamsari said.Now it’s hoping to grab more of the overall real estate loan market with products that let homeowners tap equity…

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AUD News 

Australia’s bruised big banks offered respite in inquiry wash-up

“Broker-originated loans currently account for up to half of some of the big banks’ mortgage books” reports businessinsider.com. Finance Brokers Association of Australia managing director Peter White said the big banks would use their branches to take the lion’s share, at a cost to consumers.The big Australian banks also need to retain sufficient capital to meet new regulator-imposed requirements being imposed in Australia and New Zealand, where they also operate.Many of the wealth management, insurance and financial planning units divested by big Australian banks in recent years were profitable but…

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News 

Prominent Republican wants to take student-loan payments out of your paycheck

“Borrowers could soon be required to pay back their federal student loans directly from their paychecks, if one powerful Republican gets his way” writes Jillian Berman for marketwatch.com. Proponents of payroll withholding for student-loan payments say the idea would help borrowers stay current on their loans and avoid default, while also ensuring taxpayers received a return on their investment, given that taxes pay for the federal student-loan program. Source: marketwatch.com

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Consumer Protection Bureau Aims to Roll Back Rules for Payday Lending

“The way payday loans work is that payday lenders typically offer small dollar loans to borrowers who promise to pay it back by their next paycheck” writes Daniella Cheslow for npr.org. It would also limit payday lenders to only two attempts to withdraw money from borrowers’ accounts, a move designed to target the fees that payday lenders charge.”We strongly urge Kathy Kraninger to reconsider her decision to weaken the payday lending rule and allow it to move forward as planned without delay.”.  Source: npr.org

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