Even though September records show that the lending practices of banks saw a stabilisation, there is no reason to believe this is any sort of positive indicator, say experts. What happened is the amount of new loans to small business was found to be equal this year to what it was in 2009.
Lending experts say that the real number to consider is the number of loans, not the amount of money lent. Reviewing the entire report will take some time, but it is already fairly clear that the actual number of loans approved in September of 2010 is less than it was in September of 2009. This is the most indicative number that the so-called stabilization is not a stabilisation at all, but a continued decrease, instead.
The other deceptive number is that September 2010 saw small business deposits reach a high. This, however, is just an indicator that small business is hoarding cash in reserve because of its distrust of the economy and is not investing it in new jobs or growth.