For a recession, business credit is widely available

Northwestern Financial Review, Mar 15, 2002

Business credit is more available now than in previous recessions during the past 30 years, according to the FDIC. In its Bank Trends report, the agency said that unlike previous recessions, total commercial credit continued to expand throughout 2001, despite a decline in commercial and industrial loans held by banks.

Investment grade businesses tapped the capital markets throughout 2001, taking advantage of the low interest rates and bypassing commercial lenders, FDIC said. Smaller companies, however, continued to rely on bank credit and generally found it available.