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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: John Vosilla who wrote (53100)2/8/2006 2:15:01 PM
From: shades  Respond to of 110194
 
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To: John Vosilla who wrote (53100)2/8/2006 2:15:08 PM
From: shades  Respond to of 110194
 
DJ Fed Survey: Bks Expect Loan Quality Somewhat Dn This Yr

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WASHINGTON (Dow Jones)--Most banks operating in the U.S. expect credit quality to decline somewhat this year from recently high levels, according to a Federal Reserve survey released Wednesday.

"Looking ahead, banks indicated that, on balance, they expect loan quality on loans to businesses and households to deteriorate somewhat in 2006 from current very robust levels," the Fed said in its latest quarterly survey of banks' senior loan officers.

As for loan demand, "a notably larger" net number of domestic banks reported weaker demand for residential mortgages in the past three months, furthering a weakening trend the Fed found in its previous survey. Credit standards for home mortgages were reportedly unchanged in the most-recent three-month period surveyed.

The survey, conducted in January, included responses from 56 domestic banks and 19 foreign banks.


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