Private banking: News
Datamonitor detects lending industry tightening its lending belt 01/09/2006
Author: Lianna Brinded
Amid fears that consumer debt is spiralling out of control, the retail lending industry has tightened its lending criteria and is targeting good quality customers.
However, a new report from independent market analysts reveals that it is a case of too little too late for the minority of customers who are already saddled with huge debts.
Lenders do not have any control on past lending decisions. Indeed, loans of less good quality contracted a few years ago can affect lenders business at any time in the future, comments Karina Purang, Financial Services analyst at Datamonitor and author of the report.
Indeed, their willingness to relax lending criteria in recent years to acquire customers en masse and increase market share means that lenders are now in a vulnerable position with regards to past lending decisions.
