Banks keep tightening credit

Banks are still raising lending standards. The Fed released its quarterly survey of senior loan officers yesterday (summary here, report PDF here). 69 percent of banks surveyed reported tightening lending standards over the past three months for firms with less than $50 million in sales. (Other factors also tightened, like the amount of credit extended, loan spreads, covenants, and collateral needed.) Banks also reported somewhat weaker demand for commercial loans.

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