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The COVID-19 pandemic s financial impact on key
sectors of the economy has triggered some tightening of business
and consumer lending requirements, and banks have been imposing
more stringent standards for borrowers, especially
consumers.
This change is borne out by the Fed s July 2020 Senior Loan
Officer Opinion Survey on Bank Lending Practices. In addition,
leading banks continue to increase reserve rates on consumer loan
portfolios in anticipation of higher delinquencies to come.
While many traditional lenders have pulled back from consumer
lending due to new uncertainties in their risk model and funding