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Risks to US banks rising from loose lending standards

Washington

THE risks to US banks associated with loose underwriting standards are increasing, the federal Office of the Comptroller of the Currency said in a report released on Wednesday, as the Federal Reserve raised interest rates for the first time in nine years.

With interest rates low, banks have relaxed their standards for lending and the lower quality loans pose dangers to their overall health, the report found.

At the same time, lower interest rates have pushed many banks to reach for yield...

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