WASHINGTON–A new Fed survey of bank executives finds tighter lending standards and weaker demand during the fourth quarter for commercial and industrial (C&I) loans to businesses, while lending standards for households during the same period were tighter or remained the same with weaker demand.
The January 2023 Senior Loan Officer Opinion Survey on Bank Lending Practices (SLOOS) covers up to 80 large U.S. banks and 24 branches and agencies of foreign banks. The Fed generally conducts the survey quarterly.
For the C&I loans, the Fed said the results reflected those made to large, middle-market, and small firms during Q4.
Additional Findings
In addition, the Fed survey found banks had tightened standards, among weakened demand, for home equity lines of credit (HELOCs). Meanwhile, the report stated, standards tightened and demand weakened, on balance, for credit card, auto, and other consumer loans.
“Banks, on balance, reported expecting lending standards to tighten, demand to weaken, and loan quality to deteriorate across all loan types,” the Fed report stated.
For the full report, go here.
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