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Rebuilding Construction Loans

A $375 billion drop in construction and development lending explains about half the contraction in total bank loans since a peak in mid-2008. If construction activity is indeed poised for a rebound, bank growth prospects may be near a turning point.

Rock Bottom

The disintegration of construction and development loan portfolios echoed a collapse in home building and paralleled a dive in other private construction activity. Now, construction spending may be bottoming out.

 
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