Fed says banks have eased business loan terms

Well, at least the commercial and business sector are starting to ease up the loan process again. What that typically means is that the residential and private sector are not too far behind. You have to think that the loan stipulations will start to ease up a little if we are to have any hope of beating this recession!

By Martin Crutsinger, AP Economics Writer

The Federal Reserve building in Washington DC

WASHINGTON — The Federal Reserve says banks loosened lending standards modestly for some business loans the past three months but kept tight standards on consumer loans.

The Fed say about 12% of banks responding to its latest survey had eased their standards on commercial and industrial loans to large- and midsize businesses.

However, the survey found little change in the tight lending standards imposed on consumer loans since the housing market collapsed.

For the business loans, banks said the slight easing in standards reflects a less uncertain economic outlook and increased competition from other banks to make business loans.