US DATA: NPLs Increased In June, Led By CRE

• The Dallas Fed Banking Conditions Survey showed loan demand declined for the seventh period in a row, and most bankers expect a further deterioration over the next six months. Data collected June 13-21 as part of its twice per quarter survey. More here.
• “Overall loan volumes continued to fall, with particular weakness seen in consumer lending. While commercial real estate and commercial and industrial loan volumes continued to see marked volume declines, residential real estate lending remained stable.”

Loan volumesSource: Dallas Fed

• “Loan nonperformance increased, with the rise led by commercial real estate loans. Credit standards and terms continued to tighten, and loan pricing continued to rise. Bankers’ outlooks remained pessimistic, with contacts expecting a further contraction in business activity and an increase in nonperforming loans over the next six months.”
• The increase in current NPLs is however smaller than at the start of the year prior to the failure of SVB and other regional banks.

NPLsSource: Dallas Fed