Bankers cautious on new lending.A nationwide survey by Grant Thornton Thornton, city (1990 pop. 55,031), Adams co., NE Colo., a residential and industrial suburb of Denver; inc. 1956. Industries include oil and gas development and the production of computer graphics systems, wood products, coffee and tea, building components, infant of 600 senior banking executives at the end of the first quarter of 1992 found bankers pessimistic pes·si·mism n. 1. A tendency to stress the negative or unfavorable or to take the gloomiest possible view: "We have seen too much defeatism, too much pessimism, too much of a negative approach" about a surge in new-loan volume in 1992. Only 31% reported a year-to-year increase in loan volume for the first quarter of 1992, with 30% reporting lower volume. Loan volume for the remaining 39% equaled that of last year. Looking ahead, only 20% of the bankers polled expected a rise in commercial and industrial loan volume in the 12 months ending March 31, 1993. Another 38% forecast a drop in commercial and industrial loans for the period, while 42% anticipated no change. An ongoing credit crunch Credit Crunch An economic condition whereby investment capital is difficult to obtain. Banks and investors become weary of lending funds to corporations thereby driving up the price of debt products for borrowers. in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , defined in the survey as an inability or unwillingness to make loans to qualified borrowers at reasonable prices and terms, was acknowledged by 38% of those polled. Another 11% said a credit crunch had existed but was over by the survey date. However, 51% of the bankers denied a credit crunch had ever existed. To a large extent, the bankers' views on a credit crunch appeared to be colored by the state of the industry in their area. In the Northeast, where the banking system is in turmoil, 67% of the bankers agreed a credit crunch existed. In the Midwest Midwest or Middle West, region of the United States centered on the western Great Lakes and the upper-middle Mississippi valley. It is a somewhat imprecise term that has been applied to the northern section of the land between the Appalachians , where banking problems were held to a minimum, 71% disputed the existence of a credit crunch. |
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