|
Credit Squeeze (5/22/01)
FULL STORY:
If want to switch to a new credit card, better do it soon! Banks are getting
stingy. One-fifth of banks reported this month they had tightened standards on
credit card loans over the past three months, compared with only 12% in
January. In addition, 19% of the banks responding to a survey, say they have
reduced credit limits on credit cards. The findings come from the May 2001
Senior Loan Officer Opinion Survey on Bank Lending Practices conducted by the
Federal Reserve. The recent run-up, or expected future increases, in consumer
delinquency rates were most often cited as a reason for changing
consumer-lending policies. The FRB survey also found that 10% of domestic
financial institutions reported increased demand over the past three months
for
consumer loans of all types, including credit cards. However, almost all
domestic banks reported no change in standards for residential mortgage loans.
Loan officers from fifty-five large domestic banks and twenty-one U.S.
branches
and agencies of foreign banks participated in the May survey. For more
information visit
www.federalreserve.gov.
|
|