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Is Banking Still on the Rocks?
From today’s Beige Book release by the Federal Reserve:
Banks reported steady to softer conditions in most Districts. Loan demand was said to have weakened in the New York, Philadelphia, Cleveland, St. Louis, Kansas City, and Dallas Districts. New York noted particular weakness in demand for home mortgage loans, whereas Richmond and St. Louis reported this to be the strongest segment of late. For the most part, the weakness appears to have been concentrated in the commercial sector, though Boston and Chicago reported some pickup in commercial real estate lending–largely refinancing. Credit quality showed signs of deteriorating in the New York, Philadelphia, Dallas, and San Francisco Districts but was described as stable or mixed in Cleveland, Chicago, and Kansas City, with Chicago reporting some improvement outside of commercial real estate. Increasingly tight credit standards were reported in the New York, Richmond, Chicago, St. Louis, Dallas, and San Francisco–largely on commercial loans.
The Beige Book clearly reports a market still in turmoil, and it doesn’t really report on any positives in the financial services sector, but I wonder whether bankers are starting to see some turnaround. GDP is positive, after all. Is that playing out in the marketplace? Is there some positive signs for banking?
More coverage of today’s Beige Book here.
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