FDIC Quarterly report is out
Ok so the number of home sales increased but lending has certianly decreased. Largest banks were responsible or 75 percent of the drop– a decline of 2.8 percent.
Ds News wrote the following analysis:
In the Tuesday release of the FDIC’s quarterly assessment of the nation’s banking landscape, the agency also reported that banks’ cut lending in Q3 by the largest amount since the government began tracking loan activity in 1984, with declines recorded in every loan category, from commercial and real estate mortgages to small business and corporate funding.
Total loan balances of FDIC-insured institutions fell by $210.4 billion, or 2.8 percent, compared to the second quarter of this year, indicating that banks are still reluctant to extend credit which analysts agree is an essential element of an economic recovery. According to the report, large banks were responsible for 75 percent of the decline. It’s these institutions that hold more than half of the industry’s assets and were the primary recipients of the government’s bailout program – funding intended to jumpstart lending.