Some large banks, defined as those with assets greater than $20 billion, have reported easing their commercial loan terms to businesses, the latest Federal Reserve Board senior bank officer survey revealed.
Overall, banks reported little net change in their standards for commercial and industrial loans in the fourth quarter of 2009, according to the survey released Jan. 29. However, the net fraction of banks that reported further tightening of loan terms over the past three months was considerably lower than responses from the most recent Fed surveys.
Most of the handful of banks that experienced an increase in loan demand cited a shift in customer borrowing to their banks from other credit sources, as well as customers' increased need to finance mergers or acquisitions and accounts receivable, according to the survey.
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