The Federal Deposit Insurance Corporation (FDIC) said last week that bank lending grew in the second quarter of 2014 at the greatest pace since before the financial crisis in 2007. FDIC data showed a 2.3 percent increase over the year's first quarter, with total loan balances surpassing $8 trillion for the first time ever. Lending was up across all sectors, led by construction loans, with mortgages being the only ones that are not also up from a year ago.
FDIC chairman Martin J. Gruenberg said, "We are moving into a different stage of the financial and economic cycle." That stage is one where banks are willing to risk more money following a long post-recession recovery. He did caution, however, that the recovery is not complete, especially in the mortgage market, and that interest rates will remain low for some time. But Gruenberg remains optimistic. "The industry, I think, is well positioned," he said, "having strengthened its balance sheet to respond to increasing credit demand."
As mentioned on this blog last week, the current economic climate is leading to an increase in activity for small lending institutions, particularly in the case of mortgages, where large lenders are often still reluctant to commit. Small lenders, in turn, should generate greater demand for loan amortization software, an essential tool to ensure that they have all the pertinent information they will need before entering into an agreement. With this software, which is available for auto loan, mortgage or personal loan servicing, to name a few, lenders can set the ideal terms for any lease.
An amortization calculator will take into account all the variables of each particular loan candidate's financial situation, helping to establish amortization schedules tailored to every instance.