Bank lending has decreased as a result of the economic crisis. Why hasn't it recovered?
Some argue that banks won't lend money. That's part of the problem, but another factor is reduced demand.
Some people and businesses don't have an appetite for debt these days. With uncertainty about how they'll repay, they don't want to take on the risk of borrowing.
A recent episode of Bloomberg on the Economy features interesting thoughts from William Dunkelberg at the National Federation of Independent Business. He notes that (some) banks have plenty of money - they just need good borrowers to ask for a loan.
The program also discusses small businesses, how they can create jobs and help the economy recover, and challenges those businesses face. You can download a recording here (or just get the MP3 file).