Tighter standards and weaker demand for commercial and industrial (C&I) loans and commercial real estate loans were reported by bank senior loan officers in the year’s first quarter, according to results of a survey released by the Federal Reserve Monday.
The survey is conducted by the Fed among up to 80 large large domestic banks and 24 U.S. branches and agencies of foreign banks. It is generally conducted quarterly, corresponding with meetings of the Fed’s rate-setting Federal Open Market Committee (FOMC).
Other results from the survey showed:
- Loans to households saw standards tightened across all categories of residential real estate (RRE) loans other than government-sponsored enterprise (GSE)-eligible and government residential mortgages, which remained basically unchanged.
- Demand weakened for all RRE loan categories.
- Tighter standards and weaker demand for home equity lines of credit (HELOCs) were reported.
- Standards tightened for all consumer loan categories; demand weakened for auto and other consumer loans, while it remained basically unchanged for credit cards.
The April 2023 Senior Loan Officer Opinion Survey on Bank Lending Practices