Outstanding Commercial & Industrial Loans

All Commercial Banks, Seasonally Adjusted

The value of commercial and industrial loans, i.e. business loans, on the balance sheets of U.S. commercial banks has been on the rebound since last fall, a positive sign for the economy. A separate survey of banks conducted quarterly by the Federal Reserve reveals that banks have been loosening C&I loan standards since the second half of last year. Moreover, the survey reveals that demand for C&I loans from creditworthy borrowers has firmed up this year. The growing availability of – and demand for – debt capital is a positive sign in a sea of lackluster economic indicators, a tailwind that will help carry the economy through the current soft patch. For commercial real estate, the rebound in C&I lending is a positive sign for leasing activity.

Source: Federal Reserve, Grubb & Ellis