The US Federal Reserve’s Senior Loan Officer Opinion Survey revealed this week that an increasing number of international financial institutions tightened their lending standards during the three months to January 31 2008.
The survey, which covered 56 American banks and 23 international institutions, found that commercial and industrial loan standards had been particularly tightened during the three months.
One third of US respondents and two thirds of foreign respondents said they had tightened lending standards on such products during that time.
Around 55 per cent of US respondents also indicated that they had tightened standards on prime mortgage products, an increase of 15 per cent from the 40 per cent registered in the October survey.
A large but unsurprising 85 per cent of the 39 American banks offering non-traditional mortgage products also said they had tightened lending standards during that time.