Lending standards were largely tightened for both businesses and households during the third quarter, according to a report issued Monday based on responses from senior bank loan officers.
In its October 2020 Senior Loan Officer Opinion Survey on Bank Lending Practices, the Federal Reserve said bank officers said banks tightened their standards and terms on commercial and industrial (C&I) loans to firms of all sizes, and that banks reported weaker demand for C&I loans from firms of all sizes.
Meanwhile, the report indicated, banks tightened standards and reported weaker demand across all three major commercial real estate (CRE) loan categories—construction and land development loans, nonfarm nonresidential loans, and multifamily loans—over the third quarter of 2020.
For households, the Fed report said banks tightened standards across all categories of residential real estate (RRE) loans and across all three consumer loan categories—credit card loans, auto loans, and other consumer loans—over the third quarter of 2020, on net. Banks reported stronger demand for credit card loans, auto loans, and most categories of RRE loans.