By contrast, St. Louis district banks report declining loan demand, though this is largely attributed to a loss of share by banks in the mortgage market. Strong growth in commercial and industrial loans is reported from Philadelphia, Richmond, Atlanta, Chicago, St. Louis, and Kansas City. Consumer lending is reported to be strengthening in the Atlanta, St. Louis, Kansas City and Dallas districts but flat in New York and Cleveland. However, residential mortgage lending is generally weaker in Richmond and Dallas, as well as St. Louis. Declines in refinancing activity are reported in New York, Richmond, Chicago, and Kansas City.
Credit quality appears to have improved, on balance, since the last report.
New York, Cleveland and Chicago note an improvement in overall credit quality, while Atlanta and San Francisco indicate little or no change. Lending standards are mostly unchanged, though New York and Cleveland report some tightening in standards. Agriculture, Mining, Natural Resources Hot and dry weather in the eastern part of the country has caused some crop damage, but crops are generally reported to be in good shape in the interior regions. Philadelphia and Richmond report that drought conditions are severely hurting this year's corn and soybean crops. Cleveland, Chicago, and St. Louis report that the corn and soybean crops are generally in good condition, but pasture conditions are poor.