A senior regulatory official on Wednesday continued the alarm bell over the brisk growth in auto lending, suggesting that some lending terms could be setting up banks for trouble.

Addressing risk managers, Darrin Benhart of the Office of the Comptroller of the Currency said risks are building from auto lenders extending payment terms, more loans going to consumers with low credit scores and higher loan-to-value ratios. He also warned banks about industries indirectly affected by the drop in oil prices, and reiterated the regulators' concerns about interest rate risk.

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