Weakened balance sheets, reduced income, falling real estate collateral values, and in some cases, a recent history of payment problems, presumably have made it difficult for some businesses and consumers to qualify for loans, especially under current stricter standards.
Payroll gains were reported to have been much smaller  BIS central bankers’ speeches  1  in April and May than earlier in the year, averaging only about 80,000 per month.2 And while the unemployment rate was reported to have fallen further in May, that decline occurred not because more people had jobs but because fewer people reported that they were actively seeking work.