The top 22 banks increased their lending for mortgages and home equity lines in June while continuing to cut back on other types of consumer lending, according to a monthly survey of the banks released by the Treasury Department.
Originations of all loans grew 13%, which the Treasury attributed to new-home purchases and seasonal renewals in commercial and industrial and commercial real estate loans. The surveyed banks originated $312 billion of loans in June.
But banks' lending shrank for credit cards, other consumer products and new commitments on commercial real estate. Total outstanding consumer loans by all the banks fell 1% in June, the Treasury said.
Loans for new CRE commitments, CRE loans and commercial and industrial loans continued to shrink, by 1% and 2%, respectively. Banks reported that the demand for CRE loans remained well below normal levels.
The Treasury began the survey to determine how banks were using money received from the Troubled Asset Relief Program.