What does it mean when the banks are becoming more conservative and how does this effect the credit crisis.?

What does it mean when the banks are becoming more conservative and how does this effect the credit crisis


Please give as much info as you can and try to make it simple to understand.|||In the run up to all of this banks were free %26amp; easy with lending, there was a thing called a "no-doc" loan where one went to a bank, asked for a loan, and the bank gave it without normal procedures of providing details of your credit history, job, salary, taxes, etc. However, those loose policies are biting us real hard right now, so things like no-doc loans are pretty much gone and if you want to borrow money, you have to prove your capability and willingness to repay. Even at that, the higher traditional standards are sometimes not enough.|||In fact, banks have not enought Liquidities/ money to run its operation and they have lost money for all bad/ not good judments on last investments therefore they are tight the procedure/policy how to loan money out to consumers by review and pally such harsh regualitons:





1. Good Job


2. Income


3. Credit History


All those main categories to based on how much they can let you to borrow.