Showing posts with label reports. Show all posts
Showing posts with label reports. Show all posts
Friday, November 22, 2013
OCC Reports Steady Lending Standards
The Office of the Comptroller of the Currency released its 18th annual credit underwriting survey. The results of this year’s survey showed that underwriting standards remained largely unchanged from last year, although some easing was noted within certain commercial and retail products. OCC examiners reported that national banks and FSAs (collectively, banks) that eased standards generally did so in response to changes in economic outlook, the competitive environment, and the bank’s risk appetite, including a desire for growth. Large banks reported the highest share of eased underwriting standards.
Loan portfolios that experienced the most easing in underwriting standards include indirect consumer, credit cards, large corporate, asset-based lending, and leveraged loans. Loan portfolios that experienced the most tightening in underwriting since last year include HLTV home equity, international, commercial and residential construction, affordable housing, and residential real estate loans.
As in the past, the economy’s health was a major factor influencing changes in underwriting standards. Expectations regarding the future health of the economy, however, differ by bank and loan product as examiners reported that economic outlook was one of the main reasons given for easing or tightening underwriting standards. Other factors influencing tighter underwriting standards were changes in risk appetite and product performance. Factors contributing to eased standards were changes in the competitive environment, increased competition and desire for growth, and increased market liquidity.
The tightening previously seen in small business banking underwriting practices has decreased with 82 percent of banks now reporting unchanged standards from the last survey. The level of credit risk in small business loans remained stable, and is expected to remain so over the next 12 months.
Read the OCC report.
ReadThe RestEntry..
Loan portfolios that experienced the most easing in underwriting standards include indirect consumer, credit cards, large corporate, asset-based lending, and leveraged loans. Loan portfolios that experienced the most tightening in underwriting since last year include HLTV home equity, international, commercial and residential construction, affordable housing, and residential real estate loans.
As in the past, the economy’s health was a major factor influencing changes in underwriting standards. Expectations regarding the future health of the economy, however, differ by bank and loan product as examiners reported that economic outlook was one of the main reasons given for easing or tightening underwriting standards. Other factors influencing tighter underwriting standards were changes in risk appetite and product performance. Factors contributing to eased standards were changes in the competitive environment, increased competition and desire for growth, and increased market liquidity.
The tightening previously seen in small business banking underwriting practices has decreased with 82 percent of banks now reporting unchanged standards from the last survey. The level of credit risk in small business loans remained stable, and is expected to remain so over the next 12 months.
Read the OCC report.
Wednesday, June 12, 2013
New York Fed Reports Maiden Lane Loans Fully Repaid
The New York Federal Reserve reported today that the Maiden Lane loans have been fully repaid with interest.
The New York Fed commented, "The Maiden Lane entities were established to protect the U.S. economy at a time of great economic stress, and I am pleased we were able to accomplish that policy objective and be fully repaid.”
Read the NY Feds release.
ReadThe RestEntry..
The New York Fed commented, "The Maiden Lane entities were established to protect the U.S. economy at a time of great economic stress, and I am pleased we were able to accomplish that policy objective and be fully repaid.”
Read the NY Feds release.
Saturday, June 1, 2013
April’s Federal Reserve Survey Reports Stronger Loan Demand
According to April’s Senior Loan Officer Opinion Survey on Bank Lending Practices conducted by the Federal Reserve, domestic banks, on balance, reported having eased their lending standards and having experienced stronger demand in several loan categories over the past three months.
Tightening standards for prime mortgage loans decreased 7.8% and demand for the prime loans increased 39.1%. The subprime mortgage market still reported tightening. Both large and medium, as well as small firms said the C&I loan market tightening decrease by 19.1% and 23.1% respectively. Moreover, loan demand increased for both categories. Banks that eased their C&I lending policies generally cited increased competition for such loans as an important reason for having done so.
The survey is based on responses from 68 domestic banks and 21 U.S. branches and agencies of foreign banks.
Read the Federal Reserve release.
ReadThe RestEntry..
Tightening standards for prime mortgage loans decreased 7.8% and demand for the prime loans increased 39.1%. The subprime mortgage market still reported tightening. Both large and medium, as well as small firms said the C&I loan market tightening decrease by 19.1% and 23.1% respectively. Moreover, loan demand increased for both categories. Banks that eased their C&I lending policies generally cited increased competition for such loans as an important reason for having done so.
The survey is based on responses from 68 domestic banks and 21 U.S. branches and agencies of foreign banks.
Read the Federal Reserve release.
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