The Federal Reserve’s quarterly loan officer’s survey makes two interesting points:
- Banks have, in large part, finally stopped tightening their lending standards
- Demand for loans is still falling
That makes sense, given weak consumer spending and the huge debt mountain we need to work off. But it won’t improve the economy anytime soon.
After tightening lending standards for more than two years, banks are finally starting to loosen up, especially for lending to big companies. Here, Commercial and Industrial loans...
Same trend for Consumer loans (credit cards, auto loans, etc.), though here banks are still tightening
Lastly, loan pricing trends are finally moving toward neutral. They're not getting cheaper yet, but they will be soon.
So, as the banks tell it, you shouldn't be blaming them for the crappy economy anymore. You should be annoyed at your neighbours for not borrowing more money.
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