Monday, October 22, 2007

banks commercial loans increases

--Since midsummer, bank lending to businesses has risen at the fastest rate in more than 30 years, providing a cushion for the economy as lenders cut back on mortgages and other forms of loans. --Commercial banks in the U.S. have a total net worth (assets minus liabilities) of $1.1 trillion, or 11.9% of total assets, well above levels considered to be healthy. --Nationwide, commercial and industrial lending -- the critical loans that fund corporate activities like share buybacks and plant expansion -- has risen at an astounding 52% annual rate since late July, and overall U.S. bank balance sheets have increased at a 22% annual rate, according to Federal Reserve data. -- For commercial and industrial lending, it is the fastest growth rate for an 11-week period in more than 30 years. --Regional banks, in particular, have had significant increases in lending. Fifth Third Bancorp, for example, said commercial-and-industrial lending rose 7% in the third quarter from a year earlier, even as other loan growth slowed.

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