Make us your home page
Instagram

Banks easing lending standards, Fed survey shows

The nation's banks are making it generally easier for consumers and industries to get residential mortgages and business and commercial real estate loans, the Federal Reserve said this week.

In a July survey of senior loan officers, the Fed also found that loan demand is picking up broadly since earlier in the year. Banks reported having experienced the strongest demand in a year for prime residential mortgages. The survey includes responses from 75 U.S. banks and 23 U.S. branches and offices of foreign banks.

"The July survey results showed a continued easing of lending standards and terms for many types of loan categories amid a broad-based pickup in loan demand," the Fed said in reporting the survey results.

The Fed's findings suggest that banks' profit margins could come under pressure; that's because most U.S. respondents — nearly 70 percent — said a key reason for easing standards or terms on business loans over the past three months was due to more aggressive competition from other banks or from nonbank lenders.

Although about 70 percent of loan officers surveyed said standards for prime residential mortgage borrowers have remained the same, 24 percent said they have "eased somewhat," according to the 100-page survey results.

Respondents generally indicated little change in standards and terms for other types of loans to households, but a few big banks had eased terms, increased credit limits and reduced the minimum required credit score for credit card loans, the Fed said.

Banks easing lending standards, Fed survey shows 08/05/14 [Last modified: Tuesday, August 5, 2014 6:34pm]
Photo reprints | Article reprints

Copyright: For copyright information, please check with the distributor of this item, Tribune News Service.
    

Join the discussion: Click to view comments, add yours

Loading...
  1. Rep. Larry Ahern gets roughed up by Clearwater City Council

    State Roundup

    It seemed innocuous enough: an "end of session report" from state Rep. Larry Ahern, R-Seminole, to the Clearwater City Council.

    Then Ahern got taken to the woodshed.

    Rep. Larry Ahern is vying for a seat on the Pinellas commission.
  2. There's a bar in Tampa where you can roller skate and eat sushi

    Food & Dining

    Roller skating, it's not just for kids birthday parties and the 1970s anymore.

    The exterior of Pattinis features this mural by Art Aliens! [Pattinis South Tampa via Facebook]
  3. Lockdown: Florida's 97,000 prison inmates confined through weekend

    State Roundup

    All of Florida's 97,000 state prison inmates are on lockdown — and will remain confined to their dorms at least through the weekend — in response to unspecified threats about possible uprisings, officials from the Florida Department of Corrections confirmed Thursday.

    Blackwater River Correctional Facility. [Florida Department of Corrections]
  4. Carnival announces five more cruises from Tampa to Cuba

    Tourism

    TAMPA — Carnival Cruise Line is adding five more cruises from Tampa to Cuba in 2018, Port Tampa Bay announced Thursday.

      Carnival Cruise Line announced additional cruises to  Cuba. Pictured is its Paradise cruise ship departing on its inaugural voyage to Cuba from Tampa. | [MONICA HERNDON | Times]
  5. Engage Behavioral Health expands into Wesley Chapel

    Business

    On Aug. 5, Engage Behavioral Health celebrated the grand opening of a new clinic in Wesley Chapel.

    hillsevbiz081117: Jennifer Phelps is the CEO & Founder of Engage Behavioral Health. Photo courtesy of Engage Behavioral Health.