The US banks are lending again is a sign that the respective economy is gradually improving. The financial crisis had changed the perspective of the US banks that were reluctant to lend money due to the fear of the occurrence of the last financial Armageddon. Banks have now turned their perspective, boosting lending at annual rates as high as 8.2% since July, according to the Federal Reserve Statistics.

Lending had dropped from mid-2008 through this year’s second quarter, deepening what became the worst recession to hit the US shores since the Great Depression of 1930. The data seem to dispel fears that making banks keep more capital in their books as a cushion against future downturns and loan losses will take the cash flow businesses need to keep the recovery developing.

One of the major reasons for this positive indicator is the economy is improving. The most bullish aspect of the upturn is that it occurred when banks knew the Fed was preparing for last week’s preliminary announcement of tougher new capital standards. The significant improvement has come in the business lending, raising hopes that it can spur increased capital investment, the foundation of business expansions. Commercial and industrial loans grew at an annualized pace of more than 20% in August and more than 15% in October, the best growth since early 2008. In between, the commercial lending dropped 19% in 2009 and an additional 9% last year.

The infamous small businesses have also seen a remarkable improvement. In a monthly survey, only 3% of small businesses owners say lack of credit is their most important problem trailing taxes, regulation and still-sluggish demand. The last reason especially is making entrepreneurs cautious of borrowing. Only 12% think business will be better in six months than it is now.

Two-thirds of business owners proclaim,-Who wants a loan? The banks all have money to lend, but there is a shortage of eligible customers coming up to the credit desks. Is anyone listening?