All Posts Tagged: credit

U.S. Outlook: Reading the tea leaves from the Loan Officer Survey

Scott Anderson
Chief Economist

The Federal Reserve released results from the April Senor Loan Officers Survey on Bank Lending Practices, which tracks changes in bank credit standards and terms and demand for bank loans from businesses and consumers of the last three months.

Middle-aged couple talking to a female banker, who's holding a pen.What stood out to us was continued broad-based weakness in loan demand from both businesses and households.

For more on this, see highlights of my report below, followed by a link to the full U.S. Outlook, delivered on May 11.

Key observations:

  • Banks reported that demand for commercial & industrial and commercial real estate loans weakened in the first quarter.
  • Banks also reported weaker demand for auto loans, credit cards, and most categories of residential real estate loans.
  • There is no evidence yet of a business investment or consumer spending surge coming from the U.S. banking industry.
  • Given the Federal Reserve’s determination to continue raising short-term interest rates into 2019, I don’t see bank lending conditions materially improving from here.

 

Read my full report.

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U.S. Outlook: What is going on with bank credit?

Scott Anderson
Chief Economist
Graph showing recent dip in commercial bank lending

You would think banks would be busy making new loans in this sort of economic and financial environment, but you would be wrong.

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What to consider for employees who relocate to the U.S. for work

Thierry Gabadou
International Banking
Two male computer engineers looking at the screen of an open laptop.

Before your temporary home rental has expired, you realize that buying a house without credit history is also problematic.

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Millennials share their financial literacy lessons

Paul Appleton
Consumer Banking
Young woman on an empty city street checking the cash in her wallet.

Their insights may give us all some useful guidance for helping future generations to learn.

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3 reminders for a healthy debt level

Paul Appleton
Consumer Banking
Middle-aged woman and shorter elderly woman with glasses in light-hearted conversation as they inspect produce in a grocery store.

When you hear the word “debt,” the associations that first come to mind may be burdensome, constricting, or negative.

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