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Credit Tightening

All articles tagged with #credit tightening

economy2 years ago

The Squeeze on Credit: How It's Stifling Growth and Loan Approvals

Banks in the US have continued to tighten lending standards for business loans and consumer loans, citing a less favorable economic outlook, reduced risk tolerance, and concerns about funding costs. Demand for loans has weakened, and economists warn that the tightening of credit conditions could choke off GDP growth and potentially lead to a recession next year. The Federal Reserve has also acknowledged that tighter financial and credit conditions are likely to weigh on economic activity.

via MarketWatch|
#bank-lending#credit-tightening#economic-growth
economy2 years ago

Banks Predict Tougher Loan Conditions and Tighter Credit Standards in 2023

Lending conditions at U.S. banks are tightening and expected to become even stricter, according to a Federal Reserve survey. Banks anticipate further tightening of lending standards due to a less favorable economic outlook, expected deterioration in collateral values, and credit quality of loans. Consumer lending standards have been tightened for credit card loans and other consumer loans, with lower credit limits and higher minimum credit scores for personal loans. In the commercial and industrial lending segment, banks have seen lower demand for loans and have imposed more restrictions on standards. The Federal Reserve continues to raise interest rates despite acknowledging the tight credit conditions in the economy.

via CNBC|
#banks#credit-tightening#economy
finance2 years ago

Fed's Daly weighs options for monetary policy tightening.

San Francisco Fed President Mary Daly believes that the strength of the economy and high inflation readings suggest that the Federal Reserve needs to raise interest rates further, but how much more will depend on how much credit tightens as a result of recent bank failures. Daly is also watching the global economy and how it could impact U.S. growth, noting that central banks around the world that are raising interest rates to bring down inflation as well as tighter international bank conditions could cause the global economy to slow and serve as a headwind for U.S. growth.

via Yahoo Finance|
#bank-failures#credit-tightening#federal-reserve
finance2 years ago

Fed's Bullard: Credit tightening won't cause recession, financial stress low.

St. Louis Federal Reserve President James Bullard has dismissed concerns of a credit crunch in reaction to the turmoil in the financial system following the collapse of Silicon Valley Bank and other institutions in recent weeks. Bullard said he does not expect lending standards to rise to a level that would push the economy into a recession. Some economists have expressed concern that the series of high-profile bank failures in recent weeks could severely tighten credit for U.S. households and businesses, taking a toll on economic growth.

via Fox Business|
#banking-sector#credit-tightening#economic-growth
finance2 years ago

The Uncertain Future of Banking in the Wake of Recent Turmoil.

Despite the recent banking sector turmoil, demand for equities remains high, with MSCI's world stock index up 7% so far this year. However, bad omens for world stocks are building, including tighter credit, a manufacturing slowdown, and a yield curve inversion, which often signals a recession. While tech stocks have dominated gains so far this year, they may not be immune to a recession. The defensive tech trade could work in a shallow recession, but in a deep downturn, money managers may dump tech too.

via Reuters|
#banking-turmoil#credit-tightening#finance
finance2 years ago

US banking crisis to hinder economic growth, says ex-Goldman Sachs CEO.

Former Goldman Sachs CEO Lloyd Blankfein has said that the US banking crisis will expedite overall credit tightening and slow the US economy. He added that banks will have to husband their equity, which will lead to less lending on the deposits they have, resulting in less credit and less growth. Blankfein and former Goldman Sachs president Gary Cohn both supported the prediction that the Federal Reserve will raise interest rates by 0.25% in the coming week but added that the central bank may need to pause and reassess thereafter to give itself room going forward.

via Yahoo Finance|
#credit-tightening#federal-reserve#finance
finance2 years ago

US banking crisis to hinder economic growth, says ex-Goldman Sachs CEO.

Former Goldman Sachs CEO Lloyd Blankfein has said that the US banking crisis will expedite overall credit tightening and slow the US economy. He added that banks will have to do less lending on the deposits they have, which will lead to less credit and less growth. Blankfein and former Goldman Sachs president Gary Cohn both supported the prediction that the Federal Reserve will raise interest rates by 0.25% in the coming week but added that the central bank may need to pause and reassess thereafter to give itself room going forward.

via Yahoo Sports|
#credit-tightening#federal-reserve#finance