If you’ve tried to get a loan or even a credit card in the past year, you might have noticed how tough the lending standards have become. The Fed’s recent survey of loan officers brought tentatively good news. It looks like the credit freeze is getting ready for a long-awaited thaw.
The Fed polled US banks in July 2009. 35% of the banks reported that they’d tightened their standards for issuing a credit card. 60% of banks polled six months ago reported using stricter standards, and 65% said the same a year ago.
Experts say that banks must start lending again in order to bring about economic recovery for all. While that may be true, few of the banks that were hurt by the economic crisis seem prepared to loosen their purse strings.
In summary, the Fed’s report is cautiously optimistic. A dwindling number of banks are ratcheting down their lending, but celebration at this point would be premature. When the banks loosen up and start lending again, we’ll know the economic rebound is in motion.
No comments:
Post a Comment