What Is a Legal Lending Limit?

The statutory borrowing limit is the maximum loan limit that a US bank can provide to a borrower. For example, the National Bank's unsecured statutory loan limit is 15% of capital and reserves; the guaranteed statutory loan limit is 25% of capital and reserves. The loan limit of a bank holding company to a bank branch is 10% of the capital. [1]

IN OTHER LANGUAGES

Was this article helpful? Thanks for the feedback Thanks for the feedback

How can we help? How can we help?

RELATED ARTICLES