• Fed says demand for business and consumer loans largely unchanged from April survey
• Survey suggests lending conditions beginning to ease, but improvement concentrated in large banks
• Banks eased standards and most terms on commercial and industrial loans to most firms
• Report shows a few large banks reporting looser standards for real estate loans, others reporting tighter conditions
• Some banks indicated tighter policies for lending to European banks
• Most banks reported no change in standards for approving commercial real estate loans
• Most banks showed willingness to increase consumer lending, easier standards for non-credit card loans