Reuters: U.S. C&I Lending Surge Raises Bubble Worries
Reuters reported that some bankers and analysts see this year’s surge in commercial lending as a red flag, noting the gain looks more like an early asset bubble than an economic breakout.
The article noted that U.S. banks reported $1.53 trillion in commercial and industrial loans in Q1/13, a 12% year-over-year gain.
Reuters said mid-size companies and publicly traded corporations are not using the loans for expansion but are getting cheaper credit lines or refinancing the replacement of obsolete factory equipment by dictating easy terms to banks competing for their business.
To read the full Reuters article click here.