WASHINGTON (Reuters) - Banks in the United States kept tightening
lending standards and terms for both business and consumer loans over
the past three months out of concern about a weakening economic
outlook, according to a Federal Reserve survey issued on Monday.
ADVERTISEMENTThe April survey of senior loan officers at 56 domestic
banks and 21 U.S. branches and agencies of foreign banks also
underlined that demand for loans from businesses and consumers was
weaker -- though not as markedly as in January."Substantial majorities
of domestic and foreign respondents pointed to a less favorable or more
uncertain economic outlook and to a worsening of industry-specific
problems as reasons for tightening their lending standards on C&I
(commercial and industrial) loans over the past three months," the Fed
said.Harm Bandholz, an economist with UniCredit Markets, said the Fed
findings implied that a broad-based credit crisis "has spilled over to
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spending for some time."That will be accentuated by declining job
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70 percent of banks -- up from 45 percent in the January survey --
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-- 
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