Great evidence of the Fed stepping in to help small business. Although this is great news, I am still not an advocate of operating business via loans, credit etc. For those who know me personally, you know there are ways to operate a business without credit. This is a positve article relating to better economic times ahead.
By Jeannine Aversa, AP Economics Writer
WASHINGTON — Regulators must do all they can to help banks make loans to creditworthy borrowers, especially small businesses, a development critical to strengthening the economic recovery, Federal Reserve Chairman Ben Bernanke said Thursday.
It’s a delicate dance for the Fed and other banking regulators. As regulators encourage banks to make loans to sound borrowers, they are also working to make sure banks get back on firmer footing after suffering through the worst financial and economic crises since the 1930s.
“Our message is a simple one: Institutions should strive to meet the needs of creditworthy borrowers, and the supervisory agencies should do all they can to help, not hinder, those efforts,” Bernanke said in remarks prepared for a conference on banking in Chicago.
“We are also supporting efforts to work with troubled borrowers to bring them back into good standing,” he added.
Getting credit to flow more normally again to both people and businesses is an important ingredient to helping the economic recovery gain momentum. Improvements have been made but problems remain.
Ordinary Americans— trying to pare their debt and rebuild their finances — have shown a weak appetite for new loans.
Read more at USAToday.com