Predictions on Bank Lending

How will banks respond to loan applicants in the next 6 months? It depends on the type of loan.

A new survey shows what risk managers at banks expect in the near future, and those expectations will affect how the banks lend money. The survey was completed by the Fair Isaac Corporation (creator of the FICO score) and the Professional Risk Managers' International Association (PRMIA).

While it may be a bit easier to get a loan, don't expect a return to the good old days. Credit supply -- the money you end up borrowing -- should be reasonably healthy, but risk managers are still skittish. They expect student loans to create problems, and they very little change in overall defaults on consumer loans.

If you're trying to get a loan, this may explain why it's more difficult than in the past. In particular, expect challenges if you're applying for a home loan or a small business loan.

On the bright side, more and more lenders are expecting to increase approvals for consumer credit; auto loans and credit cards should be easier to come by. See the survey results for more details on what to expect from banks.