Lending Standards Tighten, Loan Demand Weakens
From the October 2009 Senior Loan Officer Opinion Survey on Bank Lending Practices:
Survey included a special question on the status of CRE loans on banks' books that, at the beginning of 2009, were scheduled to mature by September of this year. Among the domestic respondents that reported having such loans, about 75% indicated that they had extended more than one-fourth of maturing construction and land development loans, and 70% reported extending more than one-fourth of maturing loans secured by nonfarm nonresidential real estate. In contrast, only 15 to 20 percent of domestic banks reported that they had refinanced more than one-fourth of each of the two types of maturing CRE loans.
Survey included a special question on the status of CRE loans on banks' books that, at the beginning of 2009, were scheduled to mature by September of this year. Among the domestic respondents that reported having such loans, about 75% indicated that they had extended more than one-fourth of maturing construction and land development loans, and 70% reported extending more than one-fourth of maturing loans secured by nonfarm nonresidential real estate. In contrast, only 15 to 20 percent of domestic banks reported that they had refinanced more than one-fourth of each of the two types of maturing CRE loans.
posted by ENSO Advisors at
1:34 PM
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