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Standard & Poor's upgraded New York State's credit rating by two notches yesterday, restoring the state to a credit standard it has not enjoyed since 1979.
In January only 1% of European banks said that their credit standard for loans to small businesses had eased, compared with 12% that said standards had been tightened.Richard Raeburn of the European Association of Corporate Treasurers says that, for smaller companies, any benefit from low official rates has been almost totally offset by higher lending margins charged by banks.
Hunt 2005 reviewed the history of the individual credit reporting industry evolution and particularly emphasized the need for credit information sharing in the credit report industry by establishing credit standard systems and relevant rules.
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Credit standards remained tight in most regions, especially for mortgages.
But credit standards for household borrowers remained essentially unchanged.
Credit standards were relaxed, for example, and loan ceilings raised.
After all, stricter credit standards are making lending difficult.
But low—"subprime"—credit standards made default more likely.
We know that mortgages were not the only loans made with reckless abandon of credit standards.
Lenders say they impose tighter credit standards on borrowers who put nothing down.
The Federal Reserve said Tuesday that more banks tightened credit standards in July.
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