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Credit Crunch – it’s the latest buzz term for describing the dilemma affecting the economies of most of the free world. That’s why we were so surprised to see an article in the Minneapolis Start Tribune about how easy it is to get a business loan today.
All the major news tells one story: Bush urges banks to lend, Paulson complains that banks are hoarding cash and the financial markets look to the government to remove banking gridlock. While it’s true that the U.S. is in a financial crisis and large institutions are crumbling under their multibillion-dollar debt load, there is other news that isn’t getting much attention.
According to the latest government stats, commercial and industrial loans, commercial real estate loans, and inter-bank loans are actually on the rise.
| “Banks continue to lend to businesses, despite anecdotes to the contrary. Loan data rebut tales of frozen lending.” |
According to spokesmen for the Minnesota Bankers Association, most of the state's 438 banks are still originating commercial loans with no major changes in the terms of their underwriting standards.
In fact, they have concluded that some claims about the nation's financial crisis appear to be myths. They rely on hard numbers to prove that bank lending to corporate America and individuals has not declined and that lending between banks has not dried up. Commercial paper (short-term borrowing by non-financial companies) may have tapered off, but not frozen up.
You can read the whole story here:For Banks, What Credit Crunch?
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