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Here we go again? Report cites loose bank lending

The Federal Reserve Building in Washington D.C.
Elizabeth Schulze | CNBC

A newly unveiled review by key federal banking regulators raises red flags about risks in the nation's lending system, noting that credit risk in the U.S. remains high despite a benevolent economic backdrop.

Examiners who took part in an annual national lending review noted that at a time when shaky underwriting standards and stressed credits are problematic, leveraged loans and borrowing by oil and gas companies were areas of particular concern.

"The agencies noted a significant increase in leveraged lending volumes and continued loose underwriting," the report stated, "as evidenced by weak capital structures and provisions that limit the lenders [sic] ability to manage risk."

The report was issued Thursday afternoon by the Federal Reserve, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency.