Thursday, January 30, 2014

OCC: Banks Ease Underwriting Standards

The Office of the Comptroller of the Currency’s 19th Annual Survey of Credit Underwriting shows a continued easing of underwriting standards for both commercial and retail loans.

The survey found that banks’ increasing risk appetite  and greater market liquidity were factors that contributed to easing standards.

Loan portfolios that experienced the most underwriting easing included indirect consumer, credit cards, large corporate, asset-based lending, international, and leveraged loans. Loan portfolios that experienced the most underwriting tightening included high loan-to-value home equity and conventional home equity.

The 2013 survey included 86 of the largest national banks and federal savings associations and covers the 18-month period ending June 30, 2013.

Read the OCC report.

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