The October credit and consumer lending report from the U.S. Federal Reserve Board’s Beige Book cites sluggish lending on behalf of consumers, among the changes in the banking and finance industry.
The report said lending activity remained stable at low levels across most Districts; however, in Richmond, Virginia, and Dallas, Texas, there was a noted increase in lending activity.
Several important figures remained stagnant at low levels. Demand for commercial and industrial loans remained weak during this time. The report cited the postponing of spending plans and economic uncertainties as reasons for the continued lack of demand.
Among the notable increases was a rise in competition for quality loans over the Fed’s previous September report, an increase the board found was due to the current tight loan standards. There was sporadic growth in auto loans and nonconforming mortgage loans, as well as increases in residential mortgage lending and refinancing, in several districts.
New York reported a decrease in delinquency rates on consumer loans, backing up recent reports that more Americans have been paying off credit card debts.