The officers also said in the Federal Reserve survey released on Monday that there was greater demand for business loans from firms of all sizes.
“Major net shares of banks … cited a more favorable or less uncertain economic outlook, more aggressive competition from other banks on nonbank lenders, and improvements in industry-specific problems as important reasons,” the U.S. central bank said in its quarterly survey.
The U.S. economy grew at a 6.5% annualized rate in the second quarter, pulling the level of gross domestic product above its pre-pandemic peak, Commerce Department data last Thursday showed.
For consumers, banks reported easing standards across all three loan categories — credit card loans, auto loans, and other consumer loans – and saw stronger demand for them during the same period.
The Fed surveyed loan officers at 75 domestic banks and 22 U.S. branches and agencies of foreign banks.
Source: Economy - investing.com
