Loan Demand Grows over the Last 3 Months

Econintersect: The Federal Reserve’s January 2014 Senior Loan Officer Opinion Survey on Bank Lending Practices addressed changes in the bank loans to businesses and households over the past three months found that:

• Banks eased their lending standards on many types of business and consumer loans and having experienced increases in loan demand, on average, over the past three months.
• The survey results indicated that a modest fraction of large banks had eased standards on prime residential real estate loans, but a similar fraction of small banks had tightened standards on such loans.

• A modest fraction of domestic survey respondents, on net, indicated that they had eased their standards for C&I loans to large and middle-market firms over the fourth quarter of 2013.
• The January survey results generally indicated that, on balance, banks eased their lending policies for commercial and industrial (C&I) loans to firms of all sizes and experienced stronger demand for such loans over the past three months

[click on image to read full report]

source: http://www.federalreserve.gov/boarddocs/snloansurvey/201402/fullreport.pdf