The more lenient lending policies enacted by the Federal Reserve last month have so far failed to increase demand from small businesses, indicating that the federal government's attempts to spur the U.S. economy through more aggressive monetary policy may need more time to take effect.
Microloans for small businesses have taken off in Peru, where informal employment is high and access to credit is low. The nation now ranks No. 1 in the annual Economist Intelligence Unit survey of world's best business environments for microlending.
A key index that measures small business lending rose 16% in September, its second consecutive month of double-digit increases. That rise in the Thomson Reuters/PayNet Small Business Lending Index is a strong signal that the U.S. economy is finally back on the road to recovery.
The Fed's latest Beige Book report confirms what earlier economic data has indicated. Eight of the 12 regional Fed banks, including San Francisco and Chicago, reported some form of growth in the September/October period. But nothing to write home about.
General Electric unit GE Capital announced Tuesday that it had acquired the retail finance portfolios from Citigroup's Retail Partner Cards. Financial terms of the deal were not disclosed, but GE Capital expects it will immediately add to earnings.
International bankers are hammering out the Basel III agreement, which will require banks to keep more capital in reserve relative to what they invest. It's a good idea, and one that would cushion the financial system from the next bust -- if the rules weren't being pushed so far into the future.
Approval rates for bank loans will likely fall as the number of applications increase over the next six months, according to a recent survey of banking professionals released today by Fair Isaac and Northwestern University's Kellogg School of Management.
