Even though banks aren't imposing new restrictions on most loans, they aren't ready to ease the tough loan standards put in place during the financial crisis. Banks "have yet to unwind the considerable tightening that has occurred over the past two years," the Fed said.
Reminds me of the old phrase, you can lead a horse to water, but you can't make it drink. People, like horses, will only do what they have a mind to do. The real world, unlike spin, obeys the constraints of income, debt levels, and confidence in one's ability to maintain that income and service the debt. People will not borrow, regardless of the standards, if they feel that it jeopardizes their existence. The year-over-year changes in key credit series at commercial banks reflect this growing concern.
Source: finance.yahoo.com
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