The Financial Stability Oversight Council warned in a recent report that regulators need to be attentive to signs of erosion in lending standards as marketplace lenders compete for customers.
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Why Lending Club and Its Rivals Will Get More Government Scrutiny
The approximately $50 billion such firms lent to consumers in 2015 is a small portion of the $3.3 trillion U.S. consumer lending market, but that amount is likely to grow rapidly in the near future, signaling that regulators should keep a close watch, the Financial Stability Oversight Council warned in a recent report. The panel, formed after the 2008 financial crisis, monitors broad economic trends and industry developments in an effort to prevent a recurrence.
