WASHINGTON -- Banks are continuing to show a stubborn reluctance to make loans despite signs of economic recovery, Federal Reserve Board Chairman Alan Greenspan said yesterday.

Noting that the "underlying values" of banking institutions have shown improvement as investors have pumped new capital into the industry, "we still are confronted with a significant element of a credit crunch," Mr. Greenspan told the House Banking Committee.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.