Bank lending in the second quarter of this year grew at the fastest pace since the financial crisis, according to a government report. The report supports the improving overall US economic outlook that many of today’s economists see. The view stems partly from a significant quarterly increase in GDP that also took place during the second fiscal quarter of this year.
Banks’ loan and lease balances rose to over $8 trillion, according to the Federal Deposit Insurance Corp. (FDIC), capping the largest quarter-over-quarter gain since 2007. The gains are attributed to a rise in construction and agriculture loans, credit card balances, and auto loans. The overall strengthening of the economy has had a loosening effect on banks and is a leading cause of increased consumer borrowing. Banks seemingly feel more comfortable lending these days, and it’s showing. J. David Williams, CEO of Centennial Bank in San Antonio, has seen a rainy year spur a surge in demand for agricultural loans.
The Chairman of the FDIC, Martin Gruenberg, stated that the release of this data marks a change in bank psychology from that of recovery to one of expansion. Banks are likely looking to take on more risk as the economy continues to improve, trying to put the cash they’ve been sitting on since the crisis to work. Although ultra low interest rates are squeezing banks’ profits, it’s a great environment to be the consumer who’s receiving historically low interest rates on loans in spaces from agriculture to construction.
With an increasingly favorable lending atmosphere, now is a good time to start searching for Miami Properties, please contact a RE/MAX Paradise agent today to discuss anything real estate related, or to get some good resources for Residential or Commercial lending.