Bankers Expect Better Year In 2011, Say Loan Quality Should Improve

About 80 percent of bankers expect improvements in major loan categories this year, according to a survey by the Federal Reserve. That means businesses can expect more loans and better terms, which should help boost the economy further.

That optimism hasn’t translated into improved stock performance just yet, however. The financial sector continues to lag other sectors, with bank indexes trending upward but not as strongly as major market indexes.

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