The Mortgage Roadmap

Banks Ease Lending Terms, Loan Demand Turns Up

3rd May, 2011 - Posted by admin - No Comments

Banks eased lending terms in the first quarter as they forecast improvement in the U.S. economy and companies sought more loans, according to a Federal Reserve survey. Commercial lending has picked up as businesses have repaired their balance sheets ahead of households and the public sector.

Most banks in the U.S. expect loan delinquencies and charge-off rates to improve in 2011, a Federal Reserve survey showed, as standards eased and demand increased for business lending. An improvement in business lending may help push down an unemployment lingering near a 26-year high as companies borrow to expand and hire more workers.
While the volume of commercial and industrial lending has increased, lending to businesses is still far from its peak. With banks still cautious about lending and consumers wary of piling on debt, credit conditions have yet to return to normal.

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