Good news: The Federal Reserve confirms that banks are increasing access to loans for consumers and businesses. According to the just-released Federal Reserve’s most recent Senior Loan Officer Survey, in the third quarter of 2010, large banks made it easier to receive a loan in nearly every category of borrowing.
The survey found that:
- Banks were more willing to make consumer installment loans and eased standards on credit-card loans.
- On net, banks eased standards and terms over the previous three months on some categories of loans to households and businesses.
- Domestic survey respondents reported easing standards and most terms on C&I loans to firms of all sizes. As in the April and July surveys, banks mainly pointed to a more favorable or less uncertain economic outlook and increased competition from other banks or nonbank lenders as reasons for easing.
- Demand declined, on net, for C&I loans, particularly for small firms; demand for C&I loans had been unchanged in the July survey. Large banks reported increased demand for commercial real estate (CRE) loans, but demand weakened at other banks
- Small net fractions of banks reported decreased demand for all types of residential mortgages and consumer loans, though the weakness was primarily at smaller institutions.
You can read more about the report in this story from Bloomberg.