Fed sounds alarm on marketplace lending
The Cleveland Federal Reserve issued a report last week sounding the alarm on the effect of marketplace loans on consumer balance sheets, and while market players have acknowledged some of the criticisms as valid, the industry has hit back against comparisons to the pre-crisis mortgage market.
The report from the Cleveland Fed, written by Yuliya Demyanyk, Elena Loutskina, and Daniel Kolliner, challenges the belief that online lending has helped to widen access to credit for borrowers who have been underserved by banks in the wake of the financial crisis.
“There is a perception out
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