Bernanke: Banks healthier but have more work to do

WASHINGTON (MarketWatch)
Conditions in the U.S. banking system have improved, but banks have more work to do to restore health and adapt to the new regulatory environment, said Federal Reserve Board Chairman Ben Bernanke on Thursday
 Some key measures of systemic risk developed by the Fed "present a picture of a banking system that has become healthier and more resilient," Bernanke said in a speech via satellite to a banking conference sponsored by the Chicago Federal Reserve Bank
Bernanke said that credit conditions have improved significantly in a number of areas, but in other sectors, like mortgages and commercial real estate, credit remains tight
Overall demand for credit has remained "sluggish," in part because of an economic recovery "that has been halting at times," Bernanke said
The Fed is keenly aware of the risk that stricter oversight could restrain lending, he said
 A review of Fed bank examiners found that they are talking a balanced approach in their review of bank lending