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Loan Standards

All articles tagged with #loan standards

finance1 year ago•14 min saved

Tightening Credit: Q4 2023 Lending Practices and Alternative Channels

The January 2024 Senior Loan Officer Opinion Survey on Bank Lending Practices (SLOOS) revealed that banks tightened standards and reported weaker demand for commercial and industrial (C&I) loans to businesses of all sizes, as well as for all commercial real estate (CRE) loan categories. Additionally, lending standards tightened for residential real estate (RRE) loans and home equity lines of credit (HELOCs), while demand weakened for various loan categories. Banks also expect lending standards to remain unchanged for C&I and RRE loans, but to tighten further for CRE, credit card, and auto loans in 2024, with loan demand expected to strengthen across all categories and loan quality to deteriorate.

via Federal Reserve|

#bank-lending #economic-outlook #finance

economy2 years ago•1 min saved

The Squeeze on Credit: How It's Stifling Growth and Loan Approvals

Banks in the US have continued to tighten lending standards for business loans and consumer loans, citing a less favorable economic outlook, reduced risk tolerance, and concerns about funding costs. Demand for loans has weakened, and economists warn that the tightening of credit conditions could choke off GDP growth and potentially lead to a recession next year. The Federal Reserve has also acknowledged that tighter financial and credit conditions are likely to weigh on economic activity.

via MarketWatch|

#bank-lending #credit-tightening #economic-growth