Banks becoming more cautious in lending to businesses.
The newspaper Les Echos, the French banks are now being progressively restricting credit flowing to businesses. The companies have had easy access to credit in recent semesters. There is now a significant reversal of the trend, as evidenced by the December survey of the French Association of Treasurers and undertaken by the Chamber of Commerce and Industry of Paris.
The survey, conducted among 800 companies from more than 500 employees, reveals that the share of firms that experience a decline in margins on bank loans is falling steadily for two months. Between April and December 2005, the share of firms observing a drop in those margins increased by 40%. This observation is also confirmed by some lenders. “Lower margins on flows and falling credit spreads, higher credit dried negatively affect the performance of our own funds, in particular the market for large accounts,” explains Pascal Arnold, director of large companies of BRED.
[...] the conventional loan. Like a mortgage, monthly payments are constant, and repayment spread over time. The consumer [...]
[...] This is our concern and the seriousness with which we follow the funding situation of the economy,” she said Friday on LCI. “We will have absolutely that banks are very careful to continue [...]