THE FEDERAL RESERVE released its quarterly Senior Loan Officer Opinion Survey on Bank Lending Practices. On balance, the number of banks reporting tighter lending standards and weaker demand both declined relative to July's survey. While these trends are encouraging, both measures remain elevated relative to historical levels, suggesting loan growth will remain challenging into 2010.
The number of respondents citing capital concerns as a reason for restricting credit continues to decline (19% in October versus 37% in July and 34% in April), likely reflective of recent equity raises, while the number of banks reporting increased.
It looks like we are slowly inching our way back up the mountain. Praise God and hang in there. I see so many vacant store fronts and hear of massive layoffs. Certainly hope for better things for people everywhere.
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