Monday, February 3, 2014

Banks Report Easing Loan Standards

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, primarily for commercial and industrial loans.

A net 13.7% of respondents reported seeing looser standards on commercial and industrial (C&I) lending to large and medium sized borrowers. Notably, increased merger or acquisition financing needs were among the top reasons for C&I loan demand. A net 16.4% of banks reported stronger loan demand for large and medium sized businesses. It was 19.7% for small businesses, while 5.6% reported weaker demand.

Read the report.

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