By Ian Mckendry
WASHINGTON (MNI) – Federal Reserve Chairman Ben Bernanke Monday
said credit conditions for small businesses remain poor and much
remains to be done to address both medium and long term
challenges facing small businesses.
Opening a day-long forum discussing credit challenges facing small
businesses, Bernanke said “credit conditions remain very difficult.”
“The formation and growth of small businesses depend critically on
access to credit,” he told the forum entitled Addressing the Financing
Needs to Small Business.
The Federal Reserve has been concerned with small business
financing because, “Small businesses are central to creating jobs in our
economy.”
Bernanke said small business financing is not straight forward and
that, “we should be wary of one-size-fits-all solutions,” adding that
extensive collaboration between policy makers and stake holders is
essential.
Bernanke said often small businesses collateral has lost value due
to declines in real estate values, but operations remain profitable and
it is critical to free up credit for such creditworthy businesses.
The Fed chair did not discuss monetary policy in his remarks.
** Market News International Washington Bureau: 202-371-2121 **
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