U.S. banks eased their terms and standards for commercial and industrial loans in the second quarter, according to a July survey by the U.S. Federal Reserve.
However, they kept commercial real estate and construction and land development lending standards about the same, according to the July 2018 Senior Loan Officer Opinion Survey on Bank Lending Practices.
Demand was stronger for C&I loans among small firms, but weaker for CRE loans. It was about the same for construction and land development loans.
Most banks that eased their standards on C&I loans pointed to heightened competition from other lenders as the reason, according to the Fed. They also noted a more favorable economic outlook, increased risk tolerance and increased liquidity in the secondary market as factors.
Wisconsin banks have generally been matching those national trends, said Rose Oswald Poels, president and chief executive officer of the Wisconsin Bankers Association.
“I know there is growing competition in the C&I lending space from all institutions, so rates and terms are getting a little bit better,” Oswald Poels said. “That doesn’t necessarily mean if you don’t meet their underwriting criteria that you’re going to get a loan.”
Read more in BizTimes Milwaukee.