Banks Rely On Lending As Trading Profits Shrink

The nation’s biggest banks are getting back to the business of writing loans to businesses and consumers after another year of dismal returns from in-house investment trading.

That increased lending, by itself, won’t add much to future economic growth, though, at least not unless the economy grows and creates more loan demand. But as businesses -- especially small and medium-sized companies ­-- get back on their feet, they’re going hat-in hand to the bankers for financing, much of it for new equipment and technology to boost output.

More