WASHINGTON–Lending standards for both businesses and households were tightened by banks during the third quarter, according to the Fed’s October 2020 Senior Loan Officer Opinion Survey on Bank Lending Practices.
The survey of senior bank officers found banks tightened standards and terms on commercial and industrial (C&I) loans to companies of all sizes, even as banks were reporting weaker demand for C&I loans from those same companies.
In addition, the newest Fed survey also found during Q3 that banks tightened their standards—and again found weaker demand—across all three major commercial real estate (CRE) loan categories: construction and land development loans, nonfarm nonresidential loans, and multifamily loans.
When it comes to households, the Fed said it similarly found banks tightened standards across all categories of residential real estate loans and across all three consumer loan categories—credit card loans, auto loans, and other consumer loans—during Q3 on net.
The bank loan officers did report demand for credit card loans, auto loans, and most categories of RRE loans.
For the full survey and additional details, go here.