Monday, August 3, 2020

Tight money

It's Now Virtually Impossible To Get A Bank Loan As Lending Standards Soar

On Monday, we got confirmation that it was not just JPMorgan but all US commercial banks that are making the issuance of almost all new credit (with one notable exception) virtually impossible, when the Fed's July senior loan officer survey showed that banks tightened lending standards across the board for C&I (commercial and industrial loans), CRE (commercial real estate), consumer (credit card and auto loans) and residential real estate (RRE) loans. The loan standards for most products - such as C&I loans, residential mortgages and credit cards - were hiked so much they nearly matched the standards during the financial crisis when it was virtually impossible to get any new loans.
Mainly a covid sudden stop.  

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