Excess Loan

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Excess Loan

A loan a bank makes to an individual over and above statutory limits. A national bank in the United States may not lend more than 15% of its capital to one person. For a state bank, the limit is 10%. An excess loan is any loan over these percentages.
References in periodicals archive ?
They have excess deposits and we have excess loans," he said and pointed out what a good balance it would be for both banks.