Banks say demand for loans is downPosted on
The biggest recipients of the government bailout made or refinanced 23 percent fewer new loans in February than in October, the first month banks received TARP funds, according to a report in the Wall Street Journal.
Bank executives have argued that they’re not to blame for decreased lending. Demand for loans, they say, is down.
At the same time, a reduction in lending by non-bank businesses hurt or shuttered by the recession has made loans harder to get, they say.