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US banks are lending to everyone but homeowners

This article is more than 2 years old.

There’s a lot for banks to celebrate in the Federal Deposit Insurance Corp.’s latest quarterly update on the US industry. They’re seeing bigger profits, and the agency suggested more are on the way as lenders put aside less money for bad loans.

Bank loans and leases have reached nearly $8.2 trillion, which means more money for business owners…

…and farmers…

As for consumers, they’re taking on less credit-card debt, though they’ve been more eager and able to take out other loans, for things like cars and education.

*The FDIC didn’t start breaking out auto lending until 2011.

Able is a big thing here. Despite super-low interest rates, banks and other kinds of mortgage lenders have pulled way back since the recession, after the market for mortgages without a government guarantee dried up and credit standards tightened considerably. Haggling between lenders and the government have thawed things a bit on that front, but it’ll be a while before we’re back to normal.

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