Virus Fears Spark Recession Talk and FDIC Starts Approving Charter Applications

In this week’s PeerIQ Industry Update they cover the growing risk of a recession due to the coronavirus, though estimates vary widely as to how much of a downturn the economy will take; to help ease the blow lawmakers have been working through a number of stimulus packages aimed at helping small businesses and consumers; online lenders like Funding Circle have seen a 150 percent increase in loan applications; when it comes to forecasting a potential recession economists range from a 10 percent drop in GDP over the next few quarters to a slow, steady decline over the remainder of the year; there is a lot of uncertainty over the next few months and lawmakers could help to better prepare businesses for the lengthy disruption so long as they can agree on an economic package; the FDIC has also started to move forward on ILC charters as they conditionally approved Square and provided more clarity on requirements. PeerIQ

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