Banks cool move to easier loan terms: Fed (by Greg Robb)

WASHINGTON (MarketWatch) - The recent trend of U.S. banks easing restrictions on loan terms cooled in the third quarter, according to a survey of banks' senior loan officers released Monday by the Federal Reserve. Fewer banks eased standards and terms over the past three months, particularly on loans to large and middle-market firms. Many foreign banks actually tightened their requirements for business loans. U.S. banks have also tightened standards on their loans to European banks, according to the Fed survey of 51 domestic banks and 22 foreign banks. Business demand for the third quarter also weakened in the third quarter. On the consumer side, there was a pickup in demand for home loans although this may have been tied to the major rise in refinancing activity.