Federal Reserve Bulletin

Profits and Balance Sheet Developments at U.S. Commercial Banks in 2005

Figure 7. Changes in demand and supply conditions for commercial real estate loans at selected banks, 1996-2006. Data plotted as curves. Two panels. In the top panel, the net percentage of banks reporting stronger demand begins in 1996 at about 10 percent, then, on balance, it rises to about 50 percent by mid-1998, falls to about negative 50 percent by the end of 2001, rises to between 20 percent and 25 percent by mid-2004, stays at about that level through late 2005, and falls to just above zero by early 2006. In the bottom panel, the net percentage of banks that tightened standards begins in 1996 at between 10 percent and 15 percent, drops to about negative 10 percent by late 1997, spikes to about 45 percent at the end of 1998, and falls to about 5 percent in mid-1999. It rises fairly steadily to about 45 percent in early 2001, remains at about that level through early 2002, declines steadily to about negative 25 percent in early 2005, and then rises to about zero percent in early 2006.

Note: Refer to figure 5, general note and source note.  Return to article