SMEs Underpinning US Lending Growth – Bank of America
(20 January 2022 – United States) Credit demand is firmly being driven “bottom up” by United States (US) small and medium sized enterprises (SMEs) according to Bank of America’s customers displaying increased borrowing demand.
The Bank confirmed In the middle market the group is witnessing significantly greater demand for loans as small businesses take on more debt as well. Bank of America has recorded up to150 percent of quarterly production compared to pre-pandemic, recovering lost loan balances while also expanding and creating more loans per quarter in what is viewed as a positive for the economic recovery.
“Clients have an ability to borrow to keep the economy growing. The bank expects growth in loan balances in the low single digits this year. That depends, though, on the trajectory of the US economy” said Bank of America CEO Brian Moynihan.