Banks are inside the old tanks

Once again, the banks turn down applicants with the same rate of beautiful women turn away hopeful men on a Saturday evening. 

The old saying that the banks will only lend to people who do not need it, is as relevant as ever. Loan applicants may as well stop dreaming because vault is closed. While governments try to spend their way out of financial crisis, banks do not follow suit. The scares from the past few years have sent banks sneaking back to their old shells and credit is no longer as easily accessible as we have become accustomed. 

Taking into account that taxpayers pay to clean up the mess after the banking sector failed, it is reasonable that they suddenly have no access to credit? Banks seem to act as a pendulum swinging from one side to the other, but they should make a greater effort to find the balance in the middle. 

It makes sense to tighten credit conditions but it does not need to kill it completely. People need money to realize their potential and in the long run cut the loan will have a tremendous negative effect on society. Banks must remember their role in society and the strength to meet demand. 

People are beginning to turn to alternative lenders such as payday loan companies. According to studies by the British comparison aggregator, Money Supermarket, the British market for short-term payday advances grew by 55% from May 2008. The higher demand for quick cash loan is a good indicator of the economic pressures people feel. Fortunately, payday loan product has evolved significantly over the past few years and is now regarded as a smart and safe alternative to credit cards and other short-term credit products. 

But banks should really take responsibility and find a better balance. We are all aware that the lending practices used over the last few years was completely out of hand, but so is the narrow hole people have to jump through today.