WSJ: Businesses Are Sweet Spot for Banks
The Wall Street Journal reported, according to the Federal Reserve, that commercial and industrial loans outstanding jumped 14% to $1.45 trillion in July, the latest month for which figures are available, from a year earlier.
The Journal said the growth rate is twice as fast as gains in overall bank credit, noting that Fed data shows that nonreal-estate related loans to businesses are up by double-digit percentages compared with a year earlier for four quarters in a row.
The Journal quoted James Chessen, chief economist at the American Bankers Association as saying, “The recent growth in loans to companies largely reflects pent-up demand at larger businesses, the improved U.S. economy and looser loan terms at some banks.”
To read the Wall Street Journal story click here.