November 22, 2014

Report: Florida's Banks and TARP

Take It or Leave It?: Time will tell which banks made the right choice in seeking TARP funds -- or avoiding them.

Mike Vogel | 7/1/2009
 Credit: What Bankers Say about Lending Standards and Loan Demand

Businesses say banks aren’t lending. Banks say they’re lending but that loan demand is down. It turns out they’re both right. Banks haven’t ceased lending, but they have tightened standards on who qualifies for loans.

In the commercial real estate area alone, banks have been tightening credit standards every quarter going back more than three years, according to the Federal Reserve Board’s April survey of bank senior lending officers. In overall business lending, the Fed reports a “very elevated” percentage of lenders continuing to tighten credit.

Owners of businesses with less than $50 million in annual sales, the vast majority of Florida businesses, have seen tightening credit standards since January 2007. The credit
is more expensive, and more collateral is required.

But the banks also report weakening loan demand. In the commercial real estate loan segment, for example, the percentage of domestic banks reporting weaker demand is the highest since 1995, when the segment was first surveyed.

Tags: Banking & Finance

Digital Access

DIRECT DIGITAL ACCESS
Add digital to your current subscription, purchase a single ditgital issue, or start a new subscription to Florida Trend.

TABLE OF CONTENTS
An overview of the features and articles in this month's issue of Florida Trend.

ACCESS THIS ISSUE »

Florida Business News

Florida Trend Video Pick

More people to hit the road this Thanksgiving
More people to hit the road this Thanksgiving

The good news for Thanksgiving travelers: the price of gas is at five-year lows. The bad news: a lot more people will be on the road. 

Earlier Videos | Viewpoints@FloridaTrend

Ballot Box

Did President Obama overstep his executive authority by enacting immigration reform?

  • Yes. He should have gone through Congress.
  • Unsure
  • No, other presidents have taken similar action, and something had to be done.

See Results

Ballot Box
Subscribe