Banks are preparing for more loans to go bad as interest rates rise

Aug 8, 2022
They're setting aside more cash to cover delinquencies and taking closer looks at prospective borrowers.
Consumers are saving less and using credit cards more as prices and interest rates rise. Above, a person on the floor of the New York Stock Exchange watches TV screens on July 27, after the Federal Reserve raised the benchmark interest rate by three-quarters of a percentage point.
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As consumer borrowing picks up, banks keep a wary eye on the possibility of more loan defaults

May 10, 2022
It isn't happening now, but that could change in the economy starts trending down.
The rise of consumer credit has banks on the lookout for whether or not consumers can pay their debt.
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Commercial lending could rebound this year

Jan 14, 2022
Business lending has been sluggish throughout the pandemic. But there are signs that commercial lending is starting to pick up again.
Some businesses are currently taking advantage of low interest rates for loans.
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Why do people think it's harder to get a loan now than a year ago?

Nov 9, 2021
A New York Federal Reserve survey finds that peoples' perceptions about loans have shifted, even though many are in relatively good shape compared to last year.
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Demand for bank loans isn't strong. Housing loans are the exception.

Oct 15, 2021
Consumers and businesses have used pandemic benefits to pay down loan balances.
While pandemic relief helped individuals and businesses pay the bills, demand for residential loans has remained strong this year.
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Revamped Chicago neighborhood loan program helps stabilize home values

Sep 28, 2021
The Northwest Home Equity Assurance Program was originally created to help prevent white flight. The money sat unspent for years.
Brian Boyle in his backyard on Chicago’s Northwest Side.
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Despite more savings, American households still have a lot of debt

Who's taking on debt for what reasons, and why paying it down is good for your financial and mental health.
Recent data from the Federal Reserve Bank of New York shows the overall amount of household debt increased steadily in 2020.
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Will borrowing get more expensive for consumers as the economy recovers?

Mar 5, 2021
Interest rates on 30-year mortgages have started climbing.
This week, Freddie Mac said the average interest rate for a 30-year fixed-rate mortgage climbed above 3% for the first time since July.
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How one small business owner kept all his employees with revenue down 70%

Jan 18, 2021
Drew Dalzell, president of Diablo Sound in Los Angeles, took on half a million dollars in debt to keep his business afloat and staff working.
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Community banks are thriving. Bankers worry it won't last.

Dec 11, 2020
A recent FDIC report found that community bank profits rose last quarter, thanks to fee income from PPP loans and mortgage refinancing.
La Salle State Bank in Illinois outsourced management of its ATMs to save costs.
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