Latest Phoenix Management Lending Survey Points to New Concerns Among Lenders

Lenders across the nation reported increased concerns about the lending environment, the economy and their customers' futures this quarter, according to the results of the second quarter "Lending Climate in America" survey administered recently by turnaround firm Phoenix Management Services. After receiving more optimistic results earlier this year, these latest results suggest increased pessimism among lenders in the U.S. Some of that concern may be tied to increased competition, the survey results suggest. When asked what the single largest impediment to their financial institution's efforts to book and maintain loans was, nearly three-quarters of lenders cited competitive forces; 40% said relaxed credit quality standards by competitors was the leading culprit, while 32% cited reduced pricing by competitors. Of less worry to lenders in their quest to book new loans was demand by borrowers. Only 12% said lack of borrowing activity was the main impediment to their efforts, and only 4% cited improved working capital by borrowers as the reason.