KeyBank’s departure from the marine and RV lending business is raising concerns from analysts about the supply/demand imbalance in the industry.
“Shrinking credit availability has the potential to further destabilize these industries,” said Edward Aaron in a report for RBC Capital Markets issued Thursday after the KeyBank announcement.
Key’s exposure is more concentrated in the wholesale segment of the RV industry and in the retail segment of the marine industry, the report said.
“The remaining lenders on the retail side continue to pull back by reducing approval and advance rates and eliminating automatic approval practices,” Aaron said. “Credit availability seems to be migrating toward regional, as opposed to national, sources.”
KeyCorp announced Thursday it will exit the retail and commercial marine and recreation vehicle business conducted though Key Recreation Lending, a division of Key’s national banking group.
KRL will cease taking applications for new retail loans Oct. 27. Key will continue to offer retail marine and RV loans directly to consumers through its 13-state branch network.