The Cleveland, New York, Richmond and Chicago districts report a softening in consumer loan demand. Only the New York district experienced weakness in overall loan demand. Commercial lending activity increased in the Philadelphia, Richmond, Chicago and Kansas City districts. The Richmond district reports that commercial bank lending is driven by continued business expansion and, in some cases, the anticipation of higher interest rates. Consumer lending has strengthened in the Philadelphia, Atlanta, St. Louis and Kansas City districts.
Credit quality is good in the Atlanta district, and bankruptcies continue to gradually decline.
The San Francisco district reports continued solid credit quality, while in the St. Louis district many bankers are becoming increasingly concerned about delinquency rates and have upped their loan loss reserves accordingly. The New York district reports tighter credit standards for all categories of loans. Agriculture and Natural Resources Most of the country is having a good harvest. The Chicago, Cleveland, Kansas City and Minneapolis districts all report good harvest conditions for their crops. Record soybean and sugar beet crops are projected for some states.