Business loan demand from large and mid-sized U.S. firms strengthened by the most in about three years in the third quarter while demand from small firms was essentially unchanged from the prior quarter, a Federal Reserve survey showed on Monday. ...

China: PBOC Q3 Surveys: Loan demand and business conditions marginally better, employment sentiment weak but households want to Bottom line: PBOC released its Q3 surveys of bank loan officers, enterprises, and urban depositors on October 24. The latest data paint a mixed picture, with credit demand and business conditions improving marginally while household price expectations and employment sentiment declining further. PBOC's bank survey suggests loan demand edged up in Q3, and loan approvals remained flat ...

Group 1 - The main question regarding the Fed's rate decision is whether financial conditions are currently restrictive, particularly for smaller banks, and the implications of a 25 basis point cut compared to a 75 basis point cut [2][3] - A 25 basis point decrease in rates is expected to benefit all banks, especially regional banks, and improve conditions for clients [3][6] - There is skepticism about the timing of a rate cut given that stocks and real estate values are at all-time highs, inflation remains above the Fed's target, and unemployment is low [4][5] Group 2 - Loan demand is anticipated to increase regardless of the Fed's decision, but a 25 basis point cut could further stimulate economic demand by making it easier for borrowers to meet debt service coverage ratios [6] - Concerns about commercial real estate have not materialized as expected, and recent rate decreases have allowed borrowers to secure better rates than nine months ago [6][7] - The housing market is experiencing stagnation, with poor housing start numbers indicating a need for lower mortgage rates to stimulate activity [8][9] Group 3 - Current mortgage rates have decreased to approximately 6.4%, down from around 7% a few months ago, but there is a need to further reduce spreads between mortgage rates and the 10-year yield [11] - The housing cost issue is primarily supply-driven, and increasing housing supply could lead to lower housing costs [11][12] - The increase in mortgage rates has not led to a decrease in residential real estate values, which is contrary to typical market behavior [12]