Bankers, business leaders say credit crunch is regulators’ fault
Testifying this week before the U.S. House Small Business Committee hearing, bankers and small business owners told lawmakers that a harsh regulatory environment is responsible for the tight business credit market.
“What we found is that the FDIC regulators are inconsistently applying regulations throughout the banking community,” Lynn Ozer, executive vice president of Susquehanna Bank, said in his testimony representing the National Association of Government Guaranteed Lenders.
The hearing focused on the contention from regulators and President Obama that the Federal government does not have any impact on banks’ ability to lend money. Witnesses argued that Federal government regulation is impeding banks’ ability to lend money to businesses.
Source: American Banker