Lending standards for business loans tightened during the second quarter of 2022, according to the Federal Reserve’s senior loan officer opinion survey released today. Lenders also reported no change in standards for consumer loans during the survey period.
- C&I. Banks reported having tightened standards on commercial and industrial loans to firms of all sizes after several quarters of continued easing last year and unchanged standards in the previous quarter. Tightening was most widely reported for premiums charged on riskier loans. At the same time, a majority of banks reported stronger demand for loans from large and middle-market firms and while a smaller percentage reported stronger demand from small firms.
- CRE. A significant net share of banks (20%-49%) tightened standards for all commercial real estate loan categories. Moderate net shares of banks (10-20%) reported weaker demand for construction and land development loans and for nonfarm nonresidential loans. A modest net share of banks (5%-10%) reported stronger demand for loans secured by multifamily properties.
- Mortgages. On net, banks reported no change in lending standards for most mortgages. However, a moderate net share of banks tightened standards for subprime residential mortgages, while modest net shares of banks tightened standards for QM jumbo and non-QM non-jumbo residential mortgages, as well as for HELOCs. Most banks reported weaker demand for all RRE loans over the second quarter, except for HELOCs, which experienced stronger demand.
- Personal lending. Lending standards for all consumer loan categories—credit card loans, auto loans and other consumer loans—remained basically unchanged. Banks also reported most terms on credit card loans remained unchanged. The exception was a modest net share of banks that reported having increased (i.e. eased) credit limits. Banks also reported, on net, leaving most terms on auto loans and other consumer loans unchanged.
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