Several bankers said that large companies have approached banks for credit in lieu of public offerings of debt or equity. Applications for bank credit for commercial real estate projects were also said to have increased, but bankers said willingness to provide financing for this sector has declined in both public markets and among depository institutions. Demand for credit among middle-market firms was described as steady. Consumer loan volumes outstanding were generally described as steady in the region. Some banks noted heavy residential mortgage refinancing activity, but there have been only minimal increases in the value of mortgage loans outstanding at the institutions contacted for this report.
Bankers expect loan demand to ease in the months immediately ahead.
They forecast a decline in demand for commercial and industrial credit as a result of an overall slowing in business expansion in the region which they anticipate for next year. Demand for consumer credit is expected to pick up seasonally at year-end but is not expected to be strong in 1999. To comment on this site, please fill out our feedback form.