Banks report tighter loan standards
WASHINGTON -- — Banks have tightened up further on all sorts of lending, including home mortgages, credit cards and business loans, as the worst financial crisis in seven decades took a bigger toll on the economy.
The Federal Reserve said Monday that its latest quarterly survey of bank lending practices found high numbers of banks reporting tighter credit standards across a broad range of loan products.
The Fed survey, conducted in the first two weeks of October, found a sizable percentages of banks had “continued to tighten their lending standards and terms on all major loan categories over the previous three months.”
The Fed found that 85% of U.S. banks responding to the survey said they had tightened lending standards for “commercial and industrial” loans, a major type of business loan, up from 60% in the June survey.
An even bigger proportion of banks, 95%, reported tighter standards for the lines of credit they extend to large and medium-size businesses.
A large number of banks reported they were tightening standards for credit cards and other types of consumer loans.
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