Just Lend And Be Done With It!

by Mario Rizzo  

Recently, there have been reports in the Wall Street Journal and the Financial Times that Ben Bernanke and others are concerned that banks have not been lending “enough” to small businesses. The accusation is that lending standards are too strict. 

As Jack Hopkins, the director of the Independent Community Bankers of America, says in the WSJ article linked above:  

“I keep hearing remarks that credit standards have tightened, and I don’t believe that… I need to make loans to survive, to make money.” 

So what happened? The WSJ reports:  

“Some lenders argued that current lending standards are a return to more-normal conditions following a period of laxity.”  Continue reading