US banks 'increase lending liquidity'

19 October 2011

Banks in the US are slowly beginning to lend money again in the aftermath of the global economic downturn.

That is according to a report published in the New York Times, which stated that even though there has been a spate of bleak financial news emerging from the country in recent times, some fluidity is now coming back to the lending sector.

Despite the fact that growth in this monetary area remains "modest" due to the ongoing caution of the majority of financiers in the nation and it is still being weighted towards consumer and corporate borrowers, there are signs things are getting better.

For instance, Well's Fargo's chief financial officer Timothy Sloan is quoted by the news source as saying that "the narrative that banks aren't lending is incorrect".

"Lending is strong - and based on what we're seeing it will continue to grow," he added.

Recently, Iowa's attorney general Tom Miller indicated that fraud cases and municipal lawsuits are set to continue to prove problematic for US banks in the coming months.

By Gary Cooper

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