SALEM, Ore. (AP) — Oregon Treasurer Ted Wheeler is making it easier for banks to lend out deposits they take in from government agencies.
Wheeler lowered the minimum collateral requirements on Tuesday to 75 percent. Now, financially sound banks can lend out 25 cents from every public dollar deposited. They used to have to hold $1 in collateral for each government dollar they took in.
The change takes effect immediately. Wheeler says it will open up $600 million that banks could lend to individuals or small businesses looking to expand.
Ryan Deckert of the Oregon Business Association says access to loans is critical for businesses to expand. He says some small and medium-sized businesses are struggling to get loans even if they're financially sound.
Copyright 2011 The Associated Press.
