AUGUSTA -- The head of the state's Bureau of Financial Institutions, which oversees banks and credit unions, said Wednesday that Maine banks are able to lend money despite national upheaval in financial markets.

Lloyd LaFountain, superintendent of the bureau and a former state lawmaker, said his office contacted several banks this week to check their liquidity levels.

"There doesn't seem to be any drying up of mortgages or auto loans, as far as I know," he said.

The bureau also hasn't heard of lending complaints from consumers.

The meltdown among financial institutions on Wall Street is causing some to worry that small businesses and consumers who need to borrow money won't be able to get it.

But, at least as of now, the problem doesn't seem to be affecting Maine businesses or consumers.

"Here in central Maine, we kind of plod along," said Andrew Silsby, senior vice president and treasurer at Kennebec Savings Bank. "It's disappointing we don't reach the highs, but we also don't reach the lows."

He said the bank is picking up business with mortgages as people turn away from mortgage lenders -- some of whom offered risky subprime mortgages -- and come back to community banks. Also, he said, more people are depositing their money at Kennebec Savings Bank.

Maine institutions continue to make loans in other areas.

Shirley Erickson, executive director of the Maine Educational Loan Authority, which handles private loans for students who have exhausted their federal loans, grants and scholarships, said, "We have money to lend for the current school year."

The Maine Merchants Association and NFIB Maine, the state branch of the National Federation of Independent Business, both say they have not heard from any business members having trouble getting loans.

"We haven't been flooded with calls into the office," said Jim McGregor of the Maine Merchants Association, which represents retailers in Maine. "Everybody's nervous, but I'm sure if you asked all the people in Maine today, they would say the same thing."

Dana Connors, president of the Maine State Chamber of Commerce, said he, too, has not heard from businesses experiencing problems.

But he said he knows "people are tightening their belts."

"You can sense there's a lot of anxiety, concern and feeling of uneasiness around this whole issue," he said.

Susan Grove-Markwood, senior vice president at Savings Bank of Maine, formerly Gardiner Savings Institution, said the bank has been through tough times before, with roots dating back to 1834.

"We are still working with customers every day," she said. "We are still making loans every day."

She said they are fielding questions from customers and will sit down with them to make sure they understand how the Federal Deposit Insurance Corporation works to protect their money.

The bank, which has 32 branches statewide, handles home mortgages, car loans and home equity loans, among other things, she said.

"Situations like this do make people realize there is an extra layer of security when you can walk into your local bank and you know who you are dealing with," she said.

Susan Cover -- 620-7015

scover@centralmaine.com