This has been a tough year for everybody. Banks, too! Because of the slowdown in the automobile industry, bank leasing is in more or less a suspended state. And it is pos­sible that it is going to stay that way until the leaves start to fall in 1975.

"There has been a retention as far as growth is concern­ed in bank leasing," explained Tom Van Rijn of Atlantic-Pacific Leasing in California. "They are being told to act with restraint in order to get into a better liquidity situa­tion. Because of deficiencies on some consumer loans, the banks have to concentrate on other business rather than leasing."

Jim Davidow, President of First Lease, Inc., Barrington, Illinois, pointed out that he received all kinds of inquisitive phone calls about bank leasing when he first started in busi­ness in Barrington, "but not anymore," he said. "Things have quieted down now. Banks are being told to cool it. Money is tight and they are trying to stay in the best credit areas. On top of all this, the auto industry is in bad shape and there is no market for expanding into leasing, right at the moment anyway."

Davidow explained that the banks are being restrained as far as asset growth is concerned and that leasing is just not top priority for the banks. "Right now they just try to handle bank business," he said.

In the years ahead, however, look for leasing activity with banks to pick up again. Dick Chamberlin, Assistant Vice President, Business and Economic Research, First Na­tional Bank of Chicago, explained that the slowdown will not last forever. "A lot of economic factors are involved because this is a self-correcting situation," Chamberlin said. "Monetary policy has been easing since late summer and I expect it to ease some more. The normal business cycle has to run its course. After it does, bank leasing should pick up."

Chamberlin added that while there has been an increase in the number of commercial and industrial loans, there has been a decrease in the rate of growth of small loans.