The Bankwatch

Tracking the consumer evolution of financial services

US banks continue to tighten lending

The credit crunch for consumers in North America is on for real now according to these statistics. / In depth – US banks continue to tighten lending

Moreover, banks continued to tighten credit standards on mortgages across the board, reducing the availability of funds to finance purchases of homes. About 62 per cent said they tightened standards on prime loans, while 76 per cent tightened standards on “non-traditional loans”.

A historically high proportion of banks said they were tightening terms on credit cards and other consumer loans, while many also pointed to reduced involvement in the student loan business.

Written by Colin Henderson

May 5, 2008 at 21:25

Posted in Consumer trends, US

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