Iowa bank lending on the rise - KWWL - Eastern Iowa Breaking News, Weather, Closings

Iowa bank lending on the rise


Iowa bank lending moved upward for the first time in two years but bankers aren't ready to declare the recession over.

Loans for over 300 Iowa-based banks increased in the past quarter to $41.5 billion.

The associated press reports that is still below $42.2 billion from a year ago and far behind the 2008 year end high of $44.3 billion.

Charlie Funk, president of MidWestOne Bank in Iowa City, says loan demand is improving but still sporadic.

He says companies are sitting on cash, and aren't interested in hiring people.

While farm lending is growing, he says some farmers don't need to borrow money.

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