US banks have tightened lending standards in near record numbers this year, a Federal Reserve report indicated yesterday, suggesting the credit squeeze in the economy has continued to intensify. Financial Times
The senior loan officers’ survey reported that the fraction of banks tightening lending standards was 'close to or above historical highs for nearly all loan categories' – including corporate loans, commercial real estate, mortgages, credit cards and other consumer loans.
Meanwhile, Ben Bernanke, Fed chairman, called on lenders and policymakers to help homeowners with negative equity to restructure their debts and avoid foreclosure.