As we begin 2012, there are signs that the economy is growing. New construction of apartment buildings and supermarkets can be seen around town. Signs for hire are posted in storefront windows. But it is business lending in particular, that is showing signs of significant and sustained growth.
Business lending is up 8% year over year, a $100 billion increase. The Federal Reserve reports that commercial banks had $1.34 trillion in loans extended to businesses of all sizes at the close of 2011. At the close of 2010, $1.24 trillion business loans were outstanding. According the FDIC’s Quarterly Banking Profile for the Third Quarter of 2011, business lending has increased consecutively for the last five quarters.
This news follows the heels of a recent report , showing that over $600 billion of small business loans were outstanding in 2011, and the largest banks had committed an additional $100 billion over the next three years.