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Credit remains crunched. Who is to blame?
The hunt for culprits usually starts with the banks, which stand accused of hoarding cash and shunning creditworthy corporate borrowers. Bankers, in turn, often cite weak loan demand for the ongoing contraction in credit. Surveys, statistics and anecdotal evidence suggest that both supply and demand factors are to blame.
On the bright side, larger companies are taking advantage of improved conditions in the capital markets to raise funds. If banks are unable to extend businesses credit, borrowers may find that others are increasingly willing to stump up cash via other channels.
Read more at Financial Services Briefing: “Supply and demand” (March 30th)