Credit standards loosen, says Fed

Commercial credit standards have loosened.

The Federal Reserve recently released its quarterly survey of senior loan officers, and it showed that credit standards have loosened, which may be good for property management companies looking to invest further.

Domestic banks eased standards for many aspects of lending, including commercial real estate. Loans still are not any easier to receive, but there are more attractive terms that may entice some investors who were hesitant, initially.

Banks are considered to be more likely to loosen terms for loans to businesses – regardless of their size – as there are a larger number of banks lending. The further competition could help improve the frequency of lending, overall.

"Banks are slowly loosening those strings and making credit more available," Millan Mulraine, U.S. economic strategist for TD Securities, told Bloomberg. "We will hopefully get this positive feedback loop between economic growth, credit flows and employment growth."

With further improvements in credit standards, it may not only be possible to to help improve the country's gross domestic product – which grew at a rate of 2.2 percent during the first quarter – but it may directly help the commercial real estate industry increase its rate of recovery.

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