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Lending Conditions

All articles tagged with #lending conditions

economy2 years ago•1 min saved

Banks Predict Tougher Loan Conditions and Tighter Credit Standards in 2023

Lending conditions at U.S. banks are tightening and expected to become even stricter, according to a Federal Reserve survey. Banks anticipate further tightening of lending standards due to a less favorable economic outlook, expected deterioration in collateral values, and credit quality of loans. Consumer lending standards have been tightened for credit card loans and other consumer loans, with lower credit limits and higher minimum credit scores for personal loans. In the commercial and industrial lending segment, banks have seen lower demand for loans and have imposed more restrictions on standards. The Federal Reserve continues to raise interest rates despite acknowledging the tight credit conditions in the economy.

via CNBC|

#banks #credit-tightening #economy

finance2 years ago•2 min saved

Fed's Mester Signals Support for Interest-Rate Increase Above 5%

Cleveland Fed President Loretta Mester said interest rates need to rise above 5% given stubborn inflation, but how much above 5% will depend on economic and financial developments. Mester says the Fed is closer to the end of the tightening journey than the beginning. She will wait until the next policy meeting in May to decide whether rates should be raised at that meeting or a later one. Mester will also take into account whether banks are tightening their lending conditions and what impact that has on the economy.

via Yahoo Finance|

#economy #fed #finance

finance2 years ago•0 min saved

Bank Earnings Reports: Key to Fed's Next Rate Rise Amidst COVID Lockdowns and Investor Expectations.

JPMorgan Chase, Citigroup, and Wells Fargo will kick off earnings season on Friday, and what they say could be one of the best forward-looking economic indicators available. Banks were already tightening lending conditions in January, before the turmoil that brought down Silicon Valley Bank, according to the Federal Reserve’s Senior Loan Officer Opinion Survey. Conditions can only have become worse since last month’s market scare, and upcoming bank earnings could hold the key to the Fed's next rate rise.

via Barron's|

#bank-earnings #economic-indicators #federal-reserve

real-estate2 years ago•3 min saved

"Ranking the Home Price Slowdown and Affordability of US Cities"

Credit strategists at Goldman Sachs expect a more muted impact on residential lending relative to other types like business and commercial. But the gap between cities already seeing home-price declines and those seeing increases will widen, according to Goldman's Chief Credit Strategist Lotfi Karoui. He observed that affordability in weaker markets is still an issue. And if banks tighten standards further, more people with lower incomes and weaker credit scores will be shut out of the market, hurting demand in already struggling cities. Below is a list of 20 cities with the slowest home-price growth from the highest to lowest rates.

via Business Insider|

#affordability #home-prices #housing-market