WASHINGTON (Reuters) – Revenues for the $6 billion payday loan industry will shrivel under a new U.S. rule restricting lenders’ ability to profit from high-interest, short-term loans, and much of the business could move to small banks, according to the country’s consumer financial watchdog.

The Consumer Financial Protection Bureau (CFPB) released a regulation on Thursday requiring lenders to determine if borrowers can repay their debts and capping the number of loans lenders can provide to a borrower. The rule will take full effect in roughly two years.

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