Secured Lending Confidence Index
The SFNet Confidence Index is based on survey responses from senior executives. Q3 Bank Data Highlights: Confidence indicators improved or remained steady as the economy rebounded during the third quarter. Lenders were expecting the economy to improve in Q2 and this sentiment has continued in Q3 as outlook for portfolio performance and general business conditions increased. Both write-off and non-accrual saw a significant improvement, mainly due to economic improvement and immediate and careful action at the beginning of the pandemic. Credit standards continue to tighten within both small and large banks alike. Q3 Non-Bank Data Highlights:Stable for business conditions, portfolio performance, new business, and expected hiring from Q2, the non-banks continue to hope that economic dislocation to have a positive impact on portfolio growth and utilization. While easy monetary policy and new lending facilities have had a limited impact on banks’ willingness to lend, Non-Banks are likely to continue to be a major source of credit as long as central bank policy keeps yields low and pushes investors to seek higher returns.