Banks report drop in demand for loans

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Investors aren't the only ones running for safety as the market tumbles and the economy wobbles.

Businesses, too, are indicating an unwillingness to take on risk as loan demand declined for the first time in about four years, according to the Federal Reserve's Senior Loan Officer Survey released this week.

Demand for commercial and industrial loans has plunged in 2016, with declines happening across business sizes. Large- and medium-sized businesses had an 11.1 percent decline, while demand from small businesses fell 12.7 percent.

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For large and medium businesses, the decline was the first since the fourth quarter of 2012 — demand was flat in the second quarter of 2015 — and tracking for the biggest three-month decline since the fourth quarter of 2011.