In fact, Kentucky's crop should be the largest in 15 years. District farmers saw soybean prices fall between September and August. Banking and Finance Lending activity in the District remains varied between commercial and consumer loans. Commercial loan extensions are holding steady at a good level, and a few banks even report a slightly stronger market. Consumer loan growth is still soft, however.
Some banks also note a shift from consumer loans toward home-equity loans.
Mortgage refinancing activity is reported to be constant at an average level for the season. Competition for borrowers is fierce, and the spread between borrowing and lending rates remains very narrow. Many medium and small banks report added competitive pressures from credit unions. The market for auto loans has been a particularly active area for credit unions. Credit standards are described as holding steady, although consumer credit delinquencies are still on the rise.