Banks Toughen Terms on Loans

NEW YORK -- Banks are imposing tougher lending terms for consumers and businesses across the board, The Wall Street Journal reported Tuesday.

The Federal Reserve's survey of banks' senior loan officers, one of the most closely watched gauges of lending practices, found that the credit crunch is widening. The proportion of domestic banks tightening their standards was at or near historical highs for almost all loan categories, including credit cards and student loans, the paper reported.

The survey, conducted in April, showed that demand for loans weakened in most categories, though not as much as in the previous three months, the paper reported.

-- NYSSCPA.org News Staff

Posted on 5/6/08