US Banks Concerned About Economic Slowdown and Tightening Lending Standards, According to Fed Report

A Federal Reserve report has shown that banks have tightened lending standards for households and businesses, potentially posing a threat to US economic growth. The report also revealed that banks expect troubles to persist over the next year, largely due to diminished expectations for economic growth, fears over deposit outflows, and reduced risk tolerance. The survey was being closely watched on Wall Street to gauge the fallout from troubles in the banking industry that accelerated in early March.