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 continued to intensify. The Fed’s 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”. Meanwhile, Ben Bernanke, Fed chairman, in a speech urged lenders and policymakers to help homeowners with negative equity to restructure their debts and avoid foreclosure.

This entry was posted by Gwen Robinson on Tuesday, May 6th, 2008 at 5:37 and is filed under Capital markets. Edit this entry.