Credit crunch puts squeeze on lending

[Green_Bear]

The credit crunch will sharply reduce the amount of money banks have available to lend for mortgages and to business customers this year, according to confidential research compiled for the government.
International banks are tightening up on the amount of money they are making available to other financial institutions. This is set to reduce significantly the amount Irish banks can raise in the financial markets to lend to customers.
In recent years, the banks have raised cash by selling on groups of mortgages to other financial institutions – so-called securitisation - thus providing them with more cash to lend out.
However, the research indicates that the turmoil in the markets will cut the amount they can raise from this source to half of last year’s level. This will leave them with significantly less cash to lend to their customers. >>>>

**Credit crunch puts squeeze on lending **
By David Clerkin and Ian Kehoe
sbpost.ie/post/pages/p/story … qqqx=1.asp

[A_Random_Walk]

Confidential research? If they invested in some open source research they could have read the same things here throughout 2007.