Are banks hoarding cash?

Banks appear to continue to hoard cash. In many cases, the origin of this cash is either taxpayer money, or U.S. government borrowed money. Yes, banks may actually be hoarding money borrowed from China, Japan, etc..

This very likely took place due to the government bailouts of banks in 2008 and based on many news reports, continues currently. Due to the continued slow economic expansion, and now slowdown the in the current expansion, banks are still reluctant to expeditiously lend out money to both small businesses for small business loans, small business leaseback loans, as well as to individuals.

In essence, they are still hoarding cash, due to uncertainty, which itself is a drag on the economy.

The turndown rate at banks is about 90% - 95% on business loans

A major fact that commercial banks, upon applying, even with the correct loan officer at the bank, do no want you to know is that the turn down rate at regular commercial banks is approximately 95% for business loans of all types.

This is certainly not a fact they want to advertise and you will not be seeing commercials about this. It is unfortunate that small business owners go to the bank without any realistic knowledge of how hard it will be to get approved, and that the likelihood of being declined is so high. If business owners knew this, they would very likely not go to the bank in the first place. Many business owners go to the bank truly believing they will be approved.

They end up being shocked at all the requirements the bank has, credit wise, collateral wise, and financial statements wise, and the experience they have gone through afterwards, only to end up being denied, and in many cases, somewhat offended, based upon perceived advertising by those same banks prior to their visit, and perceived expectations.