Big Banks Lean into Auto Dealer Loans Amid Rebound in Car Production

Corporate Services attorney Stephen Dietrich spoke about the auto industry in an interview with American Banker. Capital One Financial and Fifth Third Bancorp are exiting the floorplan lending business. Even with their exit, Mr. Dietrich said there isn't a significant withdrawal in credit availability, like during the 2008 financial crisis when banks suddenly told dealers their relationships would end.

"Nothing like that is happening," he said. "We're just starting to see perhaps a little bit more attention to the portfolio than there was before."

Mr. Dietrich also said some lenders are raising floorplan loan prices for dealers.

READ: Big Banks Lean into Auto Dealer Loans Amid Rebound in Car Production (Subscription required)