lending

Why Banks Aren’t Lending: Weak Economy, Regulatory Uncertainty

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Why Banks Aren’t Lending: Weak Economy, Regulatory Uncertainty By Peter Gorenstein U.S. banks got hammered last week on concerns the sovereign debt crisis in Europe coupled with slow growth and a weak U.S. consumer are setting the stage for another financial crisis. U.S. banks still have some troubling legacy assets on their balance sheets but for the most part they are in much healthier shape then back in 2008, says John Garvey head of U.S. banks and capital markets at PricewaterhouseCoopers. “The banks have made pretty significant steps in the last couple of years to improve their stability in terms … Read more

Small Firms Hunger for Sales, Not Credit .

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Small-business lending has been in trouble, but is there an explanation beyond the widespread perception that banks are denying credit, and starving small entrepreneurs? Clearly, the financial crisis and recession whacked banks and curtailed lending to small companies. Lending still hasn’t returned to prerecession levels. But here’s an alternative view of the principal cause: A range of observers report that, in many cases, small businesses don’t want loans. Their sales are so weak they can’t justify taking on debt to expand operations. “It’s the sheer lack of expectation that they’re going to grow their company,” says Bernie Kuechler, of Barlow … Read more