Banking and Finance Commercial loan demand remains generally strong, with only a few community banks stating otherwise. Consumer loans are off a bit, reportedly due to higher interest rates and a softer automobile market. Mortgage refinancing has also fallen in the wake of higher interest rates. Consumer delinquencies have declined slightly. However, several bankers continue to note a rise in bankruptcies, and credit standards on credit card debt have been tightened further.
Commercial delinquencies remain very low.
Competition for borrowers is strong in the District, and bankers report that depositors are moving funds from passbook savings accounts into higher-yielding investments, including money market deposit accounts.