WASHINGTON—The Federal Reserve's first-quarter senior loan officer survey shows that lenders mostly left their commercial and industrial loan standards unchanged since the end of 2016.
The survey showed banks tightened standards and saw less demand for auto loans. They also loosened standards and saw less demand for credit card loans.
"Reports of weaker credit card loan demand are in line with an earlier Fed report showing a deceleration in revolving loan growth," said NAFCU Chief Economist and Director of Research Curt Long. "The strong labor market has thus far failed to provide much wage growth, which has muted loan demand among consumers."
Banks did tighten most credit policies on commercial real estate loans, which some banks reported was due to their concerns about regulatory changes or supervisory actions. The survey showed the standards and demand for residential real estate loans remained unchanged during the first quarter, noted Long.
The survey was based on responses from 72 domestic banks and 20 U.S. branches and agencies of foreign banks.