The Federal Reserve has made note that many banks are doubling their belt notches in these troubling times. On Monday the Reserve stated that the figures of banks increasing lending requirement standards is at an almost record high for all types of loans.

The survey, which was implemented in April, shows that almost 2/3´s of the surveyed banks have made stricter requirements for traditional home loans, and almost 15% of those 2/3 say the restrictions have been very severe.

All of this is in result to the credit crisis that started due to faulty payments for suprime loans made to borrowers with low credit. These loans ended up being sold to investors, however once the market started falling the investors began to pull out of these kinds of loans. Due to that, many banks are very reluctant to make loans although the Federal Reserve has been issuing many funds to the banking system to try and prevent the banks´ actions from leading to a recession.

The survey also found that only 9 of the banks surveyed are still making suprime loans, and of the 9, 7 made considerable restrictions.