U.S. Banks' Trend of Tight Lending Is Seen in Summer
Wall Street Journal (08/28/00) Vol. 104, No. 34 p.C17; Kulish, Nicholas

The Federal Reserve says that U.S. banks will continue the trend toward tighter business lending practices through the summer. According to a Fed survey, most banks cited "a less favorable or more uncertain economic outlook," as well as a "reduced tolerance for risk" as the reasons for the tightened standards. Almost 34 percent of American banks tightened their credit standards for loans to large and medium-sized companies in the second quarter, and 23.6 percent of banks tightened standards on small-business lending. The survey showed that no banks eased business-lending practices.

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