NationsBank, Signet gain prominence as lenders to national political parties.

WASHINGTON -- NationsBank and Signet Banking Corp. have become top lenders to the nation's political parties.

Reports filed with the Federal Election Commission show that the Charlotte, N.C.-based NationsBank has loaned $2.3 million to the DNC Services Corp., an affiliate of the Democratic National Committee, and $2 million to the National Republican Congressional Committee.

In 1992, NationsBank loaned more than $1.8 million to the Democratic Congressional Campaign Committee and more than $2.4 million to the National Republican Congressional Committee.

"It's only likely some of these campaign committees would come to us, the largest bank in the area," said Darlene Frank, vice president of corporate communications. "We make loans on a narrow basis to committees," she added. "All of these loans are evaluated on a case-by-case basis."

Signet's Virginia subsidiary is also a major political lender. It extended a $5 million line of credit to the Republican National Committee on Aug. 30.

Gail H. Sanders, vice president of public affairs for Signet, said the bank has had a relationship with the GOP committee for more than I0 years. "The line of credit was based on their underwriting and fund-raising ability, and their proven track record of repayment," Ms. Sanders said.

In 1992, the Republican National Committee borrowed only $1 million. Committee spokeswoman Anne Gavin said this year's credit needs reflected a changing political climate, in which Republicans hope to increase their numbers in Congress. "It is purely a matter of the incredible environment for Republicans in this election. The RNC is funding 100 Congressional races this year," Ms. Gavin said.

Political experts say Republicans have a good chance to take over the majority in the Senate for the first time since 1986, and have an outside chance of controlling the House, which has been under Democratic control since 1954.

NationsBank's political action committee dished out $522,000 -- to mostly Democratic candidates -- through Sept. 30, more than any other bank PAC. Republicans received 38% of that money.

Signet's PAC made only $11,230 in donations through Sept. 30. Republican candidates garnered $7,230 of that money, according to Federal Election Commission reports.

Mr. Nielsen writes for Medill News Service.

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