Bank of England warns that credit will be even tighter in months ahead.
A recent bank credit conditions survey in the UK reveal the credit crunch is likely to intensify in the coming months, with banks planning to continue rationing the amount they lend out to customers.
UK government had previously bailed out three of the UK’s biggest lenders in October, insisting that they would raise mortgage availability back to 2007 levels. The problem is that this pattern of bailing out lenders and tightening credit creates a negative feedback loop and causes even more damage to the bank’s accounts and worsens the cycle.
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-Travis Hiland
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