Credit card delinquencies declined in April for the fourth straight month, indicating that consumers are gaining traction. Diminishing delinquency and default rates could eventually lead lenders to reduce strict lending standards; following significant tightening subsequent to the subprime crisis. On this note, more lenient lending standards could have wider implications for the U.S. economy, which […]
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Senior Loan Officer Survey
This week will provide us with our first peak into this month’s manufacturing and housing sector data with Monday’s Empire State Manufacturing Survey and NAHB/Wells Fargo Housing Market Index. They will be followed up later in the week with the Philly Fed manufacturing survey, and both housing starts and existing home sales on the housing […]
Back in January I did a piece discussing the predictive power of the Senior Loan Officer Survey, and found that there was some significance to the data. For the survey banks’ senior loan officers are asked to answer multiple questions based on their lending standards and demand for commercial/residential loans as well as consumer loans. […]
*I believe so and this is why… (A quick synopsis)http://www.federalreserve.gov/boarddocs/snloansurvey/ Looking at the trend from the past several Senior Loan Officer Surveys, we have seen lending standards for banks and consumers tighten, while demand has receded and spreads of loan rates verse the banks’ cost of funds are rising. We expect when the next wave […]