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Commercial and Industrial Loans

Commercial and Industrial Loans
June 2015
Category: Investment

According to recent information, commercial and industrial loans are on pace to overtake residential mortgages for the first time since the 1980's. Commercial and industrial loans rose 8.5% in the first quarter of 2015 compared to the same period in 2014 to approximately $1.749 trillion in total outstanding debt. This accounted for 21% of the outstanding loan balances in U.S. banks and is at it's highest level in the past 13 years.
 
Residential loans only grew by 1.7% in the first quarter of 2015. The shift shows that manufacturers, retailers, and other large companies have began borrowing more money in recent months to get ahead of rising interest rates.