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According to a Fed survey, banks tightened standards on commercial real estate loans in Q4 ’15 for the second straight quarter—a development expected to continue through 2016. As we've reported before, both regulators and big-name investors say frivolous lending is trending just like before the 2008 crash, which could put a stop to bad loans.
But with a corporate credit squeeze in the works, Bloomberg reports, the Fed worries companies' lack of access to cash could halt economic growth. Fed Chair Janet Yellen says the credit crunch “is an important factor” in weighing the merits of the Fed’s rate hike plans. [Bloomberg]
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