Fed Report tighten Past Bank Lending
Credit & Loan July 19th, 2010
NEW YORK – United States Central Bank (The Federal Reserve / Fed) has recorded a number of banks tightening credit standards apply various loan products, ranging from residential mortgages to business loans.
In a recent survey revealed the Fed has tightened bank lending to all types of loans during the quarter due to the worst financial crisis in seven decades on the economy.
Fed survey revealed, the first two weeks in October, a large enough percentage of banks that have made borrowing standards and requirements in all major loan categories over the previous three months.
The Fed noted about 85 percent of domestic banks have been tightening lending standards for commercial and industrial loans. While loans to businesses recorded increased from 60 percent in the June survey.
Even a larger proportion of the bank, which has 95 percent of the tightening of lending standards for credit expansion and increase the medium to large businesses.
Nearly 60 percent of banks said they had done tightening lending standards on credit card debt, while 65 percent said the bank doing the tightening lending standards for other types of consumer loans for three months.
Some big banks also reported tightening lending standards on housing loans, as well as nontraditional residential mortgage loans and residential mortgage loans simple extension of loans to borrowers who have a weakness in the mortgage payment. This was done since the housing sector went bankrupt because of the global financial crisis
