NEW YORK (AP) — Federal Reserve Chairman Ben Bernanke says that many businesses and consumers are finding it easier to borrow as banks shore up their balance sheets.

But he says many creditworthy borrowers are finding it difficult to get mortgage loans. He says small businesses that have used their homes as collateral for loans also face "challenging" conditions.

In response to criticism that regulators have made it difficult to lend, Bernanke says the Fed is taking a "balanced approach" in supervising banks.

Bernanke says that banks have made "considerable progress" in shedding risk from balance sheets and building cash cushions against future loan losses. He says cash and securities holdings at large banks have doubled since 2009.

Bernanke's comments were prepared for delivery at a banking conference Thursday in Chicago.