Banks Making More Business Loans??
Posted by Bill McDermott on Mon, Jan 02, 2012 @ 03:04 PM
USA Today came out with an article last week stating that banks are making more business loans. "Banks have turned on the spigot, boosting lending at rates as high as 8.2% since July according to the Federal Reserve"
In a quote from Stuart Hoffman, chief economist at PNC Bank, the reason for this improvement is the economy is improving and community banks are picking up the slack while large banks remain cautious. Business lending has increased 20% in August 2011 vs August a year ago.
Bill Dunkelberg, chief economist of the National Federation of Independent Businesses states that in a recent survey only 3% of business owners state that lack of credit is their number 1 problem, trailing taxes and regulation.
I'm sorry, I'm just not seeing it. The Federal Reserve in Atlanta stated in their 4th quarter report that only large banks (in excess of $10 billion) had loan growth in 2011 and that was only in the first and second quarters. Loan growth has stagnated in the second half of the year according to the Fed-Atlanta. Loan growth actually fell 8% year over year in the Atlanta Fed District. Also, Georgia leads the nation in bank failures in 2011 with 23, 7 of those occurring between August and November.
The spigot is turned back on? Loan growth? Isn't credit still a serious problem for business owners?
Comments please. What are you seeing out there? Is it easier to get a business loan or is credit still tight? Join the discussion!