Academic journal article ABA Banking Journal

Big Regional Variance in C & I Lending

Academic journal article ABA Banking Journal

Big Regional Variance in C & I Lending

Article excerpt

Commercial and industrial lending trends are often an indicator of economic health. The idea being that the more robust the economy the higher the demand for these loans. To get a sense for where the segment stands, SNL Financial took a look at the year-over-year growth and the net charge-off rate trends in C & I lending for commercial banks. The chart shows the respective medians.

Commercial & industrial lending trends
US Commercial Banks

National median    2007 Q4   2007 Q3   2007 Q2   2007 Q1   2006 Q4

C&I loan growth
  -year/year (%)    8.51      8.03      8.01      9.04      9.34

NCOs C&I/avg.
  C&I loans (%)     0.26      0.11      0.15      0.09      0.20

Source: SNL Financial

The national trend shows that C & I lending growth slowed during 2007. In the fourth-quarter the western U.S. had the most robust growth, 16.7%, followed by the Southeast, 10.2%. The Midwest was the laggard of the group with a median growth rate of 6.1%--not surprising for a region that suffered as its industrial base cracked.

Traditionally the fourth-quarter has been a dumping ground for problem loans as banks clean up their balance sheets in preparation for the next year. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.