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FCA Speaks to Banks Amid Concerns About Sustainable Loans

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The UK Financial Conduct Authority is examining the market for sustainable loans amid concerns that environmental targets are too easy for companies to meet.

The FCA is speaking to players in the market about loans that potentially reward borrowers with lower rates but fail to have a significant environmental impact, according to a person familiar with the matter who isn’t authorized to speak publicly. The conversations with bankers and borrowers are informal and at an early stage and the regulator is yet to decide on next steps, the person said.