Lending Standards Remain Tight
May 4, 2009 by Miranda Marquit
Filed under Finance
If you are looking to apply for a loan any time soon, it is worth noting that that lending standards have been tighter since just before the 
global financial crisis, and that many banks continue to tighten lending standards. MarketWatch reports on lending standards:
Large majorities of banks surveyed said they had further tightened requirements on borrowers for most kinds of business and consumer loans. The banks have been tightening lending standards for most kinds of loans for more than two years.Most of the banks reported weaker demand for loans, and almost all said they expected more chargeoffs and delinquencies on bad loans in coming months.
Indeed, concerns about defaults have many banks concerned about what might happen next. While mortgage loan standards have tightened — along with business loans and other types of loans — in spite of increased demand for home loans, many credit card lenders have paused in tightening their standards. But even for banks and other lenders that haven’t tightened lending standards recently, it is much harder to get a loan in some cases than it was two years ago.
Have you noticed a change in lending standards?
image source: Joe Mabel via Wikimedia Commons
