Banks in the US tighten lending standards

US - Reflecting the shaky US economy, banks have been tightening lending standards even as demand for loans continues to drop, according to the Federal Reserve's latest survey of loan officers.

The tightening was both a reflection of and a factor behind the worsening economic slump and an ongoing slide in business investment.

In the survey, the Federal Reserve said the net proportion of domestic banks tightening lending standards for large and mid-sized US companies rose from 40 per cent, repor