Financial analysts have been arguing of late whether the banks were with-holding credit or whether people had become more conservative when it comes to getting loans.
The bank’s argument is that they haven’t with-held credit from small businesses and individual borrowers but it is the small businesses and borrowers who are unclear on what they will do with the money and that this has led to many rejections.
Critics argue that banks have made it difficult by bringing in stricter terms and also raising the interest rates.