Most banks are seeing weaker demand for loans from both consumers and businesses, one of the forces restraining the vigor of the economic recovery.
The information, contained in a quarterly survey released by the Federal Reserve on Monday, suggests that Americans don't have much of an appetite to take on new debt as they try to repair their finances after suffering through the worst recession since the 1930s.
The survey says demand over the last three months slipped further for home loans geared to the most creditworthy borrowers, for home equity loans and for business loans.
In addition, most banks say they have tightened standards and terms on credit cards used by small businesses. That's another restrain on the recovery.