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Banks Become Reluctant to Lend to Companies, Neue Luzerner Says

More companies are borrowing from capital markets as banks become reluctant to lend to them, Neue Luzerner Zeitung reported, citing Marco Illy, vice chairman of Credit Suisse investment bank.

“The higher capital requirements and tensions in the inter-banking market lead banks to be more reluctant in giving out corporate loans,” Illy was cited as saying.

This forces companies to borrow money from capital markets, the newspaper said.

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