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Banks loosen lending standards to levels seen before financial crisis
Banks loosen lending standards to levels seen before financial crisis

The largest U.S. banks have lowered their standards for some of the riskiest lending in a sign that weak underwriting is returning to levels seen before the 2008 financial crisis, according to a regulator's report. The banks have continued to erode standards, especially in large corporate loans, consumer loans and in leveraged lending, according to an annual Office of the Comptroller of the Currency survey of examiners released Tuesday. Leveraged lending is the risky financing often used to fund corporate buyouts. "As banks continue to reach for volume and yield to improve margins and compete for limited loan demand, supervisors will focus on banks' efforts to maintain...

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