Tuesday, August 6, 2013

Banks Report Improved Loan Demand

Banks loosened lending standards slightly amid improving loan demand over the past three months according to the Federal Reserve’s Senior Loan Officer Survey released today. The report, which covers the past three months, indicated that demand for loans generally improved. Banks primarily eased their lending policies for commercial and industrial (C&I) and CRE loans and experienced stronger demand for such loans over the past three months. A moderate number of the banks reported easing terms slightly.

A net 15.3% of respondents reported seeing stronger demand for business loans from large and medium sized borrowers. Demand from small businesses increased as well, with a net 24.3% of respondents noting higher demand. Banks have continued to ease standards on these business loans as well, with 18.1% of banks easing standards slightly on loans to large and medium sized borrowers and 0.1% of banks easing standards to small borrowers.

Read the report.

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