Many U.S. financial institutions left loan standards unchanged for business and real estate credits, as demand weakened.
A Fed survey finds banks were encouraged to ease terms on C&I loans by "a more favorable or less uncertain economic outlook."
Once again, U.S. banks are over-exposed to commercial real estate at a time when the market is expected to turn.
The Federal Reserve reports that valuation pressures in the CRE market are increasing but vulnerabilities in the U.S. financial system have moderated.
Many financial institutions surveyed by the Fed expect the quality of energy loans to deteriorate in 2015.
Bank's credit underwriting standards loosened considerably in 2014, especially among commercial loan products, says the OCC.
