All the "good news" reports from the banks but check out this article

< U.S. banks tighten business lending terms WASHINGTON, Aug 30 (Reuters) - U.S. bankers kept gradually tightening business lending terms over the past three months, a survey by the Federal Reserve said on Monday, as some worried the Year 2000 changeover may cause problems.

The periodic survey of senior loan officers at 56 domestic banks and 22 foreign-controlled ones found ``banks became somewhat more cautious lenders over the past quarter but show no widespread reduction in credit availability.''

(Note: this article is ``in progress''; there will likely be an update soon.)>>

The banks say to depositors not to worry but the fact is they are worried!

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-- Boz (Boz_Inc@yahoo.com), August 30, 1999

Answers

WASHINGTON, Aug 30 (Reuters) - U.S. bankers kept gradually tightening business lending terms over the past three months, a survey by the Federal Reserve said on Monday, as some worried the Year 2000 changeover may cause problems.

The periodic survey of senior loan officers at 56 domestic banks and 22 foreign-controlled ones found ``banks became somewhat more cautious lenders over the past quarter but show no widespread reduction in credit availability.''

The survey found that banks were stiffening a range of terms for higher-risk commercial and industrial loans, including imposing higher risk premiums and greater loan rate spreads between what they charge borrowers and what they pay for funds to lend.

By contrast, banks were not making it hard for individual consumers to borrow, though many banks said that demand for home mortgages had decreased since the last such survey was issued in May. Mortgage rates have risen significantly since that time.

Most banks, but not all, were willing to extend special contingency lines of credit over the year-end when there are some concerns that the 2000 changeover may cause computer disruptions. Relatively few banks said they had received requests for contingency credit lines and some said they would be reluctant to offer them.

``Those banks limiting credit lines over year-end were chiefly concerned about Y2K effects on borrowers' repayment prospects,'' the Fed survey said. Some banks also worried about how they would fund draws on credit lines over year-end, though a majority said they would be willing to use a Federal Reserve ``special liquidity facility'' if necessary to obtain funds.

Tick... Tock... <:00=

-- Sysman (y2kboard@yahoo.com), August 30, 1999.

Thank you Sysman.

Look out below!

-- nothere nothere (notherethere@hotmail.com), August 30, 1999.

Senior Loan Officer Opinion Survey on Bank Lending Practices

If that link works, it should take you to the FRB's release on the survey.

Jerry

-- Jerry B (skeptic76@erols.com), August 30, 1999.