With Chinese growth slowing and Brazil and Russia mired in recessions, governments and companies in emerging markets are finding it increasingly difficult to get loans from banks.

Lending conditions in developing countries during the third quarter were the tightest in almost four years, the Institute of International Finance said last week. The group's index, in which any value below 50 represents tightening conditions, fell to 45 in the period from 49 during the second quarter. It hasn't been that low since the fourth quarter of 2011. 

The increasing difficulty of getting money from banks could further slow growth in emerging markets, which was cited by the International Monetary Fund last month as a drag on the global economy. The tightening signals a reversal by banks that had been among the biggest boosters of developing countries in the years following the financial crisis of 2008.

"This had been the sexy growth story, not just trade finance but domestic lending growth in emerging markets," said Stuart Quint, senior investment manager and international strategist for Brinker Capital, a Berwyn, Pa.-based firm that oversees $18.5 billion. "They're coming to a realization that they need to be much more selective."

If emerging-market companies can't easily get money on decent terms, they're likely to rein in investment plans or face difficulty refinancing outstanding loans.

Standard Chartered, the London-based bank, said this week it will cut back on operations in China and India after boosting its presence in emerging markets in recent years.

And Goldman Sachs (GS) - Get Reportdisclosed in a September regulatory filing that it was closing a fund dedicated to investment in Brazil, Russia, India and China after its assets dropped about 90% since the end of 2010.

The IIF said lending losses in developing countries are on the rise, and banks are less willing to dole out fresh loans.

The banks said they were pulling back because of weaker growth prospects in the countries as well as risks in specific industries, such as commodities and manufacturing. They also saw a tightening in their own ability to obtain funding.

That's now getting passed on to borrowers in the countries.

"It could have a ripple effect on the whole economy," Quint said. "In effect, it's like monetary tightening."