U.S. Banks Face Tighter Rules on Loan-Rate Disclosure, FT Says

The U.S. Financial Accounting Standards Board may compel banks to disclose when they offer customers below-market interest rates on loans to secure further business, the Financial Times reported, citing unidentified people familiar with the matter.

The regulator will look again at the manner in which loans and credit facilities are first recorded on a bank’s books early next month, the newspaper said.

While banks are prohibited by law from tying credit terms to the purchase of other products and services, they may respond to customers’ requests, the FT said.

The proposed rules would require banks to make clear when the transaction prices of loans differ from their fair-market values, the newspaper said.

To contact the reporter on this story: Alan Purkiss in London on apurkiss@bloomberg.net.

To contact the editor responsible for this story: Colin Keatinge at ckeatinge@bloomberg.net.

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