WASHINGTON — Banks are still feeling negative effects from last year's sudden rise in medium- and long-term interest rates, but plenty of signs in the Federal Deposit Insurance Corp.'s latest industry update continue to point to a lending resurgence in the near future.

Institutions took a definite hit in the first quarter as the higher rates — which took effect in the second quarter of 2013 — have caused mortgage refinancing to dry up, posing an immediate profit challenge. But returning loan growth — particularly at community banks — is still persistent in other categories that had languished following the crisis, offering hope that the credit market is on its way again to producing revenue growth.

Register or login for access to this item and much more

All Financial Planning content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access