Financial Times FT.com

Subprime fall-out

US banks continue to tighten lending

By Krishna Guha in Washington

Published: May 6 2008 02:43 | Last updated: May 6 2008 02:43

US banks tightened lending standards in the early months of this year in near-record numbers, a Federal Reserve report indicated on Monday, suggesting that the credit squeeze in the economy ­continued to intensify.

The senior loan officers’ survey reported that the fraction of banks tightening lending standards was “close to or above historical highs for nearly all loan categories” – including corporate loans, commercial real estate, mortgages, credit cards and other consumer loans.

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