Banks Up Pace of Construction Lending for Second Consecutive Year


The construction and development (C&D) lending category for U.S. banks was once again the most rapidly growing loan category in 2016, following a year of outsized lending growth in 2015. Bank’s C&D lending surged almost 14% in 2016, topping 13% growth in 2015. This compares with total loan growth of just 5% in each of the two years prior to that, according to data from Kroll Bond Rating Agency (KBRA). C&D lending among banks remained strong despite a slowdown in many other lending categories, particularly in the second half of the year. Growth slowed considerably for many other lending categories, notably residential mortgages, auto and commercial and industrial (C&I). After posting the largest percentage lending upsurge in this category during 2016 of 58%, overseas banks with US branches appear to be backing off making loans in this category this year, decreasing their holdings in this category in 2017 to pre-2016 levels…Read More > >

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