Mixed Reports in Cleveland Fed District - Beige Book

Banking activity was mixed during the last two months in the Federal Reserve Bank of Cleveland's district according to the central bank's latest Beige Book, released today. Bankers noted that low interest rates continued to support demand for household loans, especially for mortgages but demand for business loans reportedly was flat. 

Lenders indicated that delinquency rates for commercial and consumer loans were still low because of forbearance agreements and various fiscal-relief measures, although one banker noted that delinquency rates were up among hoteliers. Multiple contacts reported growth in core deposits as customers held off on spending and investment. Looking ahead, bankers expected loan demand to remain unchanged in the near term but were optimistic that conditions will improve as more COVID-19 vaccines are distributed in 2021.