"Maybe there's a credit crunch in other places, but there isn't in the state of Connecticut," Gov. Lowell P. Weicker Jr. baldly told a conference of business executives June 23.

That startled some bankers in the audience, including some from Bank of Boston Corp., which sponsored the forum. Though New England bankers were insisting only a few months ago that the problem was a lack of demand from borrowers - not a squeeze by lenders - Bank of Boston is now trumpeting a $3 billion regional loan initiative to distinguish it from competitors.

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