WASHINGTON - Federal Reserve Board Chairman Alan Greenspan on Wednesday reiterated his warning that bankers should not respond to the economy's recent slowdown by putting the brakes on lending.

"Not surprisingly, in response to past laxity, a weakening economy, and general economic uncertainty, banks have tightened their lending terms and conditions," he said in a speech at the Independent Community Bankers of America's annual meeting in Las Vegas. "Lenders and their supervisors should be mindful that in their zeal to make up for past excesses they do not overcompensate and inhibit, or cut off, the flow of credit to borrowers with credible prospects."

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