Business Loans Lead Credit Thaw, Fed Says

Survey shows pickup in demand for commercial loans.

U.S. banks eased standards and terms on loans to businesses as commercial lending led a credit thaw, according to a Federal Reserve survey.

“Domestic banks, on balance, reported having eased their lending standards and having experienced stronger demand in several loan categories over the past three months,” the central bank said in its quarterly survey of senior loan officers released in Washington today. The fraction of banks easing standards for business loans was described as “relatively large.”

Rising Demand

Banks eased standards and saw rising demand for both credit card and auto loans, while standards and demand for other consumer loans were “about unchanged.” The share of banks easing standards was described as “small.”

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