In part, reduced business lending may reflect some tightening of 66 lending standards, particularly by larger banks and for riskier borrowers. Probably the more important  5  Bassett and Carlson (2002) discuss bank performance in 2001. 6  That tightening has been most prevalent at the largest banks is suggested by analysis of the Senior Loan Officer Survey.
In notable contrast to some of the results of this survey, respondents to the National Federation of Independent Businesses survey of small business - who deal primarily with smaller, regional banks - have not reported consistent tightening of loan terms for business. factor depressing commercial and industrial lending, however, is the weak demand for business credit.