The New York Times reports:
The Treasury Department has begun a study of online marketplace lenders, as the federal government looks to determine whether regulations are keeping up with the rapidly growing industry.
As many traditional banks have retreated from making small loans to businesses and consumers, a flood of online lenders have filled the void. Flush with investments from hedge funds and other institutions, the marketplace lenders say they are providing valuable credit to important, underserved segments of the economy, often with less trouble and at a lower cost.
The Treasury Department said in a statement on Thursday that it was seeking “to study the potential for online marketplace lending to expand access to credit and how the financial regulatory framework should evolve to support the safe growth of the industry.”
The full NYT story is here.
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