Loan Demand Rises, Fed Survey Finds

Major American banks and foreign banks with U.S. branches made it easier for companies to borrow funds in recent months as commercial borrowing demand rose, a Federal Reserve poll of bank officers showed.

The Fed's Senior Loan Officer Opinion Survey, conducted in January, found that banks eased lending standards for both commercial and industrial loans and for commercial real estate loans.

Demand for commercial and industrial loans rose at domestic banks, on net, but was unchanged at foreign institutions. Both domestic and foreign banks reported increased demand for commercial real estate loans, the Fed said.

Many banks reported weaker demand for residential mortgages and consumer loans since the Fed's last survey in October.