Credit unions may be turning to member business loans as a source of growth, especially in light of this year’s principle-based MBL rulings. On Tuesday, Nov. 29, the NCUA provided additional clarity around the definition of MBL loans versus commercial loans, and expectations for how credit unions will effectively manage the increased and different risk that comes with business lending compared to consumer lending.

Whether the institution has an MBL concentration to grow or will be starting a new lending segment, credit unions can begin gearing up today for the Jan. 1 commercial lending rule. This includes procuring the right staff and technology as well as developing sound policies and controls that reduce risk.

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