Loan Demand Drops Sharply
CHICAGO, May 20 ÛÓ Demand for loans * at the nationÛªs major banks turned down sharply in recent weeks after growing substantially in the first three months of the year and probably wonÛªt grow at all for the rest of 1.980 because of the recession, top offi-1 cials of Continental Illinois National Bå£nk said today.</br></br>(/Û÷Our loan demand peaked in the week of March 26,Û according to George R. Baker, executive vice president of the largest seventh largest bank. That was less than two weeks after President Carter announced a nhw anti-inflation program with sharp constraints on the extension of credit to businesses and consumers.</br></br>'.Part of the presidentÛªs program included a ceiling of between 6 percent and 9 percent on the growth of bank Ioans in 1980. ÛÏIn mid-March that may have looked troublesome. Now it doesnÛªt look like a problem,Û said Baker.</br></br>He said that because of falling loan demand on the part of both busi-i^nesses and consumers, interest rates f rSSould continue to decline.</br></br>- The prime rate, which was cut to 16 Û¢i percent Monday, should be down to 12 percent or 13 percent by the end of Û¢ 'the 'year, he said. Less than five weeks