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US regulators urge banks to weigh risks of loans to undocumented workers
The guidance encourages banks to consider how lending to immigrants without work authorization could affect credit risk and compliance obligations.
The Wall Street Journal Markets reports that US financial regulators have issued guidance aimed at discouraging banks from making loans to immigrants who are not authorized to work in the United States.
The guidance says banks should consider the risks involved in extending credit to borrowers who do not have legal work authorization, framing the issue in terms of risk management rather than direct prohibition.
According to the report, banks are being urged to evaluate those risks as they develop and apply lending policies.