The Loan Drought at Banks May Soon Be Coming to an End

All year, the economy has been recovering from the pandemic-induced recession of 2020. But while spending levels have picked up, banks have not seen the material increase in loan balances and loan profits that they were hoping for. Part of that has been because increased liquidity has helped healthy consumers pay off existing loans early, while commercial customers have been dealing with disrupted supply chains and uncertainty from the ongoing pandemic. 

Bank CEOs, however, have maintained that while timing may be difficult to predict, increased spending levels and significant economic growth at some point have to translate into loan growth. Now, for the first time in a while, there seems to be real evidence that this may be happening.

Image source: Getty Images.

Continue reading

Source Fool.com