Business Loan Indicators Show Improvements in Q2

According to banking data released yesterday by the Federal Reserve, both delinquency rates and charge-off rates for business loans at all commercial banks continued to improve in the second quarter of 2010.  Charge-off rates fell for the third consecutive quarter to 1.71% during the April to June period, the lowest rate since the 1.84% rate in the first quarter of 2009; and delinquency rates for business loans fell for the second straight quarter to 3.71%, also at the lowest level since the first quarter of 2009. Both of these key banking indicators for commercial loan performance are down to levels comparable to the post-2001 recession, suggesting ongoing improvements in the business sector.