Pressure for More Bank Credit

Banks are not making sufficient loans to small business, even when they have the ability to do so. The fact is, they make more money these days, with far less risk, by borrowing cheaply from the Federal Reserve and investing in government bonds.

Also, there is political meddling and strict bank supervision adding to the bank-lending picture.

Banking groups are now complaining that they have the money to lend, but with less takers because of the recession.

Many thriving businesses, especially commercial real estate operations, are genuinely seeking loans from banks with funds. But, too many lenders are hesitant about extending loans they once more readily made. (See the Earl J. Weinreb NewsHole® commentaries.