Like many sectors, food service vendors have been caught up in the recent severe lending
credit environment. In large measure, the banks are not responsible as they are merely reacting to the warnings of government regulators. As has always been the case, banks must reasonably comply with both internal and external credit policies and regulations. However, many bankers now believe external policies have resulted in additional tightening. If they fail to stiffen credit standards, this may result in penalties and other consequences that bankers would like to avoid by maintaining a conservative loan portfolio.