Banks Limit Lending to High-Tech Firms


The latest Federal Reserve report of loans made by banks reveals they are not nearly as keen as they once were to extend loans to high-tech companies. In its report, the Fed says: "The percentage of domestic banks that reported tightening standards on loans to large and middle-market firms, which peaked at 60% in the January survey and decreased to 50% in the May survey, fell to 40% in August." The Fed also confirmed loans extended to smaller firms followed suit. Also, bankruptcy filings leapt 24% over the last quarter to 400,394, the third quarter in succession that has reported an increase.

Source: Wall Street Journal



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