Wall Street and European banks are bracing for a tightening of lending standards, according to surveys of bankers. The Federal Reserve's interest rate hike, along with restrictive monetary policies and bank turmoil, are creating challenges for borrowers. Demand for corporate loans in Europe has dropped significantly, and new US regulations may force big banks to increase their capital buffers by billions of dollars. The economic impact of this credit tightening is uncertain, but some predict a potential 1-2% decline in GDP in the US and Europe. However, fixed-income investors appear calm for now.. Subscribe for more!
View the original article: https://finance.yahoo.com/news/wall-street-braces-great-loan-190000049.html
Full title: Wall Street Braces for the Great Loan Tightening: Credit Weekly
Original article date: 2023-07-29T19:00:00Z
Art: https://media.zenfs.com/en/bloomberg_markets_842/14f7d7dfe9c81bfc34ee78d3b62e7918
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