Economics
Is Loan Growth Set to Speed Up or Is It Slowing? Analysts Differ
- Morgan Stanley’s Graseck expects faster C&I loan growth in 2H
- Others look at the same Fed survey and see softer C&I demand
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Sometimes, even the driest of data can act like a Rorschach test, with some seeing beauty where others see darkness. That’s happening now with results from the Federal Reserve’s July senior loan officer survey about bank loans over the past 3 months, sent to dozens of domestic banks.
For Morgan Stanley’s Betsy Graseck, the survey points to accelerating commercial loan growth in the second half of the year, and marks the fifth straight quarter that banks relaxed lending standards. "This is important," Graseck wrote this week, as the survey suggests commercial and industrial (C&I) "loan growth acceleration should be around the corner."