Thursday, August 19, 2010

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.   


At 8/19/2010 10:39 AM, Blogger Buddy R Pacifico said...

Could it be that deliquencies and charge-offs on loans are down becuase the banks have only lent to the strongest borrowers? Regardless, this is very good news and hopefully will open up increased lending to smaller business.


Post a Comment

<< Home