An updated look at banking conditions from the Dallas Fed, important read

What’s become a really important regional Fed release from the Dallas Fed is its Banking Conditions Survey and today their September report reflects a continued deterioration in the lending situation. Here was their conclusion:

“Loan demand has been declining for a year, and the pace accelerated this period. Overall loan volumes declined at a quicker pace this period as well. Loan nonperformance rose, with increased delinquency across the board, particularly for consumer loans. Credit standards continued to tighten, most notably on the commercial side. Loan pricing pushed up further, though at the slowest rate so far this year. Bankers remain pessimistic, with expectations for increasing loan nonperformance, decreasing loan demand and worsening business activity over the next six months.”