Sunday, August 10, 2008

WSJ: Euro Banks Tighten Lending Standards

by Calculated Risk on 8/10/2008 09:38:00 PM

From the WSJ: Banks in Euro Zone Tighten Lending Again

Banks in the euro zone continued to tighten lending standards during the second quarter amid a deteriorating economic outlook, and criteria could become even tighter, according to the European Central Bank's July Bank Lending Survey.
...
"The ongoing tightening of bank credit standards and the further weakening in demand for bank loans strengthens our belief that the euro-zone credit cycle is turning sharply lower," said Martin van Vliet, an economist at ING Bank.
The Fed's July Senior Loan Officer survey should be released soon - and will probably show banks tightened lending standards in the U.S. too.

The Credit Crunch continues. And the 2nd half recovery - projected by many economists - has been cancelled. From Kelly Evans at the WSJ: Economists Expect 2008's Second Half to Be Worse Than First. Here is a video of the WSJ's Evans summarizing the article: