The nation’s banks are making it generally easier for consumers and industries to get residential mortgages and business and commercial real-estate loans, the Federal Reserve said Monday.
In a July survey of senior loan officers, the Fed also found that loan demand is picking up broadly since earlier in the year. Banks reported having experienced the strongest demand in a year for prime residential mortgages.
“The July survey results showed a continued easing of lending standards and terms for many types of loan categories amid a broad-based pickup in loan demand,” the Fed said.
The Fed’s findings suggest that banks’ profit margins could come under pressure; that’s because most U.S. respondents — nearly 70 percent — said a key reason for easing standards or terms on business loans over the past three months was due to more aggressive competition from other banks and other types of lenders.