BANKING & FINANCE - Aug. 23, 1994

Banks Making More Business Loans: A national survey of bank lending found that banks are continuing to ease credit terms for business and consumer loans, but that the changes had little to do with the Clinton Administration’s loan-stimulation package announced in March, 1993, the Federal Reserve Board said. The Fed’s August survey showed that demand for business loans had increased at a significant number of banks, with many lenders attributing the increase to financing needs on the part of businesses wishing to expand their inventories. Consumer lending has lagged, however: More than half the banks reported a significant decline in demand for home mortgage loans, reflecting sharply higher interest rates this year that have choked off refinancings.