According to Fed report, banks will continue to tighten

If the Fed’s latest opinion survey is any indication we may not get any relief from continued credit tightening on the part of lenders for some time. 

The Federal Reserve Board publishes a periodic report called the, “Senior Loan Officer Opinion Survey on Bank Lending Practices.”  This report addresses various aspects of residential, commercial, and consumer lending in the US economy.

In the July 2008 report they state that most respondents to their survey (who are representatives of major lenders), “expected their banks to tighten credit standards on all major loan categories in the second half of the year, and smaller, though substantial,…respondents expected their banks to tighten standards in the first half of 2009.”



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