Fed: Banks raise standards for loans
By Martin Crutsinger, AP Economics Writer
WASHINGTON — The Federal Reserve reports that more banks are tightening lending standards on home mortgages, other types of consumer loans and business loans in response to a spreading credit crisis.
The Fed reported Monday that the percentage of banks reporting tighter lending standards was near historic highs for nearly all loan categories.
The April survey of senior loan officers at 56 domestic banks and 21 U.S. branches and agencies of foreign banks found that nearly two-thirds of banks surveyed had tightened lending standards on traditional home mortgages with 15% saying those standards had been tightened considerably.
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