Profits and Balance Sheet Developments at U.S. Commercial Banks in 2007
Figure 9. Changes in demand and supply conditions at selected banks for commercial real estate loans, 1996-2007. Data plotted as curves. Two panels. In the top panel, the net percentage of banks reporting stronger demand begins in 1996 at about 9 percent, then, on balance, it rises to about 48 percent by mid-1998, falls to about negative 50 percent by the end of 2001, rises to about 25 percent by mid-2004, and stays at about that level through late 2005, falling to about 4 percent by early 2006 and finally to negative 35 percent by late 2007. In the bottom panel, the net percentage of banks reporting tighter standards begins in 1996 at around 13 percent, dropping to about negative 10 percent by late 1997, spiking to about 46 percent at the end of 1998, and falling to about 5 percent in mid-1999. It rises fairly steadily to about 45 percent in early 2001, remaining at about that level through early 2002, declining steadily to a low of negative 25 percent in early 2005, oscillating between 25 percent and 35 percent between 2006:Q4 and 2007:Q3, and finally rising about 25 percentage points, with a final value of 50 percent in 2007.
Note: See figure 6, general note and source note.