The regulator of national banks said Thursday that banks are easing their lending standards on commercial and consumer loans.
The Office of the Comptroller of the Currency said its 19th Annual Survey of Credit Underwriting reports that bank examiners noted easing underwriting standards and increasing loan volume in an 18-month period ending June 30, 2013.
The regulator said in a news release that increasing risk appetite and greater market liquidity were factors explaining the trend.
“This year’s survey showed a progression toward easing underwriting standards as the economic environment stabilizes,” John Lyons, senior deputy comptroller and chief national bank examiner, said in the release. “As banks ease standards to improve margins and compete for limited loan demand, examiners will continue to monitor underwriting standards to ensure they are prudent and are applied consistently.”
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The survey comprises examiner observations and assessments of 86 of the country’s largest national banks and federal savings associations.