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.
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