Banks Loosen Some Business Lending Guides

Washington, DC, Feb. 1, 2011 -- Banks loosened their lending standards modestly for some business loans over the past three months, the Federal Reserve said Monday.

However, the banks kept tight standards on consumer loans.

The Fed said that 12 percent of the banks in its latest survey had somewhat eased their standards on commercial and industrial loans.

However, the survey found little change in the tight lending standards imposed on consumer loans.

For the business loans, banks said the slight easing in standards reflected a less uncertain economic outlook and increased competition from other banks to make business loans.

The survey covered 57 domestic banks, including all of the country's largest institutions.

Forty-nine of the banks said their commercial and industrial lending policies were basically unchanged.