Why commercial lending fell last quarter despite low interest rates
By Justin Ho
The Federal Deposit Insurance Corporation came out with a report this week looking at the state of banks in this economy. The report found that bank lending volume fell in the most recent quarter, driven by decreases in commercial and industrial lending…In the time since, that kind of panic borrowing from banks has calmed down, said Karen Petrou, managing partner at Federal Financial Analytics. “Companies felt more secure that the world wasn’t coming to an immediate end,” she said. But Petrou said that because the economy is still shaky the idea of taking on more bank loans did not seem prudent for many companies, even with interest rates near record lows.