WASHINGTON—A new Federal Reserve survey of bank officers indicates U.S. institutions are tightening their lending standards and raising rates on commercial loans and credit cards.
The Senior Loan Officer Opinion Survey on Bank Lending Practices reveals bankers have increasing concern about future economic growth, despite continued U.S. labor market strength and solid economic fundamentals.
“The data banks are seeing runs contrary to the overall narrative of a strong U.S. economy. Credit card delinquency rates in Q1 hit the highest level since 2012, driven in part by a spike in overdue payments by people ages 18-29,” according to the report from the New York Federal Reserve.
The New York Fed reports shows that more young people are opening credit cards now than they did in the past decade — about 52% in 2018 versus 46% in 2008 — pushing up the likelihood of more delinquencies, Axios noted.