Loan demand down across the Fed’s districts

Consumers who were looking for loan quotes recently may have found that banks were still careful when it came to offering money.

According to a recent report from the Federal Reserve Board, demands for loans continued to be down across the country. The Fed banks in New York, Cleveland and Kansas said that loan demand dropped in February, while other parts of the system said that it remained flat.

Though fewer businesses may be looking for loans, the Fed’s report also noted that lenders are still being careful with their money.

"Most districts indicated that banks remained cautious about lending," the Fed said.

Results for real estate were mixed across the districts, according to the central bank. Though a number reported improvements, real estate "remained weak or softened further" in the Atlanta, Chicago and New York districts.

Commercial real estate also continued to face difficulties in most of the Fed’s districts. Many analysts have expressed concern that the potential for loan defaults in the commercial sector could lead to a second real estate crisis.