Friday, October 21, 2016

The Business Banking Slowdown

Banks are beginning to feel the impact of a slowdown in commercial lending, with regional lenders taking the hardest hit but growth slowing across the board. Commercial lending slipped 0.1 percent by  in the July-to-September period. That's not much, but it's  the first drop in six years. Some specific examples: 
  • Fifth Third Bancorp said Thursday that its commercial and industrial loans fell 2 percent since the prior quarter. 
  •  Comerica's average loans fell by $331 million at the business bank in the third quarter.  
  • BB&T  said that average balances on its commercial and industrial loans fell by 1.1 percent in the third quarter. 
  • Regions Financial's business-lending balances fell by $979 million to $50.2 billion, leading a drop of 1 percent in average loans and leases across the bank.

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