U.S. Financial Institutions Optimistic About Consumer Lending

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Compliance and risk management provider Wolters Kluwer completed a survey of 1,000 banking professionals in January. This survey provides some hope that consumer lending may at least stabilize, if not grow, in 2011.

Seventy-nine percent of respondents to the company’s survey anticipated their institution’s consumer loan volume would rise or remain the same this year. Only 5 percent predicted a decline and 16 percent weren’t sure. Institutions with more than $250 million in assets were most likely to anticipate an increase in loan volume.
Financial institutions responding to the Wolters Kluwer Financial Services survey cited a soft economy (30 percent), stricter compliance regulations (24 percent), reduced loan demand (18 percent), and increased competition (17 percent) as the most common barriers to increasing consumer loan volume.

A number of independent indicators have recently shown potential stabilization in consumer credit broadly, and credit cards specifically. Modest increases in credit card spending and outstandings, if sustained, could drive a more positive years for credit cards in 2011.

To read more, click here: http://www.businesswire.com/news/home/20110214006271/en/U.S.-Financial-Institutions-Optimistic-Consumer-Lending

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