US banks continue to lift loan rates

The Federal Reserve said the proportion of US banks making it tougher for companies and consumers to borrow approached a record in the past three months as the credit crunch deepened.

A net 70% of banks increased loan rates over their cost of funds for commercial and industrial borrowing, according to the central bank’s quarterly survey of senior loan officers released today in Washington. That compares with 45% in the January survey, the Fed said. for more click here