The Federal Reserve reports that banks are becoming increasingly restrictive in terms of their lending behaviour, compounding the recessionary risks coming from rapidly higher borrowing costs. The data suggests a sharp slowdown in lending growth is coming with upside risks to unemployment. Banks increasingly wary of lending: The Federal Reserve’s Senior Loan Officer Survey shows banks continued to tighten lending standards across the board in the first quarter i.e. being increasingly selective on to whom they lend, how much they lend and at what interest rate. The report stated that “tightening was most widely ... (full story)