Your English writing platform
Discover LudwigSuggestions(5)
Exact(5)
In addition to paying higher interest rates, borrowers are also dealing with more restrictive lending standards.
But that episode also caused a period of market nervousness and fueled concerns about the effect that more restrictive lending would have on economic activity.
David Sambol, Countrywide's president, said in a statement that the figures reflected the difficult market and more restrictive lending practices at the company.
Although analysts said the move could be positive in the long term if it helps to instill more lending discipline, the crunch led to a big sell-off in the stock market as investors fretted about the impact that more restrictive lending could have on the already cooling economy.
However, that offset has been incomplete, as widening credit spreads, more restrictive lending standards, and credit market dysfunction have worked against the monetary easing and led to tighter financial conditions overall.
Similar(55)
The unexpected losses and growing pressures, he continued, have prompted banks to become more restrictive in their lending and more "protective of their liquidity".
American banks have also become noticeably more restrictive in their lending standards to companies, according to Albert Edwards, the famously bearish strategist at Dresdner Kleinwort.Historically, tougher bank attitudes have been associated with changes in the default rate for corporate bonds.
A quarterly survey of commercial banks by the European Central Bank showed a surge in the number of institutions that were becoming more restrictive about who they lent to, because the banks themselves were having trouble raising money and were under pressure from regulators to reduce risk.
Banks faced with the cost of such borrowing, at what may well be a high discount rate, and also faced with the possibility of being admonished by the central bank about their lending policies typically become more restrictive and selective in extending credit.
While Britain's financial regulators watched the explosion of retail lending from the sidelines, their counterparts in Germany and France were more restrictive.
"It's becoming more and more restrictive.
More suggestions(3)
Write better and faster with AI suggestions while staying true to your unique style.
Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com