Banks aren't likely to ease lending standards anytime soon due to continued worries about delinquencies, according to a survey by FICO, a decision management and analytics firm that determines consumer credit scores.
“On one hand, consumers are wanting more credit, but there’s reasons to be concerned because we’re not over the hump yet in terms of some of the delinquencies that consumers are still going to face in terms of mortgages, credit cards, and even home equity loans,” said Mark Greene, FICO's CEO. “So the bankers are worried. They see an extra demand for credit, but they’re not really willing to open up the credit lines quite yet.”
In fact, some 92 percent of the 127-surveyed bankers believe lending standards will hold steady or get tougher this quarter.