Despite the negative effects of the economic downturn and unprecedented financial markets crisis, the first survey of the top 20 recipients of government investment through the Capital Purchase Program (CPP) found that banks continued to originate, refinance and renew loans from the beginning of the program in October through December 2008.For information about individual bank lending see Treasury's report (pdf). For a short synopsis see their snapshot (pdf). Here's coverage of the report from the Washington Post.
Overall, loan origination and underwriting activities were weak from October to November 2008 but picked up from November through December, fueled by falling mortgage interest rates and the Federal Deposit Insurance Corporation's Temporary Liquidity Guarantee Program.
Wednesday, February 18, 2009
Bank Lending in Q4
The Treasury has released survey information on bank lending through 2008 for companies participating in the Capital Purchase Program (CPP). From their press release (link):