Demand for commercial and industrial (C&I) loans weakened in the first quarter, which was a similar story for many household loans, according to a report issued by the Federal Reserve Monday.
In its April 2025 Senior Loan Officer Opinion Survey on Bank Lending Practices (SLOOS) — which addresses changes in the standards and terms on, and demand for, bank loans to businesses and households over the past three months (generally corresponding to the first quarter of 2025) — the Fed said banks reported the lower demand for the C&I loans and tighter lending standards.
For commercial real estate (CRE) loans, the SLOOS reported, banks reported tighter or basically unchanged lending standards, and weaker or basically unchanged demand.
“For all CRE loan categories, banks reported having tightened policies related to loan-to-value ratios and debt service coverage ratios,” the Fed said detailing responses to special questions on the survey regarding changes in lending policies and demand for the loans.
“For some CRE loan categories, banks also tightened policies related to market areas served and the length of interest-only payment periods,” the Fed said. “For office loans, banks reported having tightened all queried policies on such loans over the past year.
For household loans, the Fed said, its survey found weaker demand for several categories, including residential real estate (RRE), credit card and other consumer loans. Demand for auto loans was unchanged.
Standards for RRE were unchanged, along with auto and other consumer consumers. Credit card borrowers faced tightened standards, the Fed said.
However, demand was stronger for loans for home equity lines of credit (HELOCs), the agency said, with unchanged lending standards.
April 2025 Senior Loan Officer Opinion Survey on Bank Lending Practices (SLOOS
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