During the third quarter of the year, banks reported tighter lending standards for commercial and industrial loans to firms of all sizes and stronger demand for C&I loans from large and middle-market firms, according to the Federal Reserve’s senior loan officer opinion survey released today. Demand for C&I loans from small firms was unchanged, while standards and demand for most commercial real estate loans also were unchanged.
Banks reported mostly unchanged lending standards and stronger demand for residential mortgage loans and home equity lines of credit, according to the Fed. For consumer loans, standards remained basically unchanged for credit card and other consumer loans and eased for auto loans. Meanwhile, demand remained basically unchanged for credit card and other consumer loans and weakened for auto loans.
C&I: Modest net shares of banks (5%-10%) reported having tightened standards on C&I loans to firms of all sizes. Meanwhile, banks reported having eased some queried terms for C&I loans to large and middle-market firms. Specifically, moderate net shares of banks (10%-20%) reported easing the maximum size of credit lines and narrowing loan rate spreads for these firms, and modest net shares reported easing the cost of credit lines. Most of the other C&I loan terms for larger firms remained basically unchanged on net.
CRE: A modest net share of banks reported tighter standards for construction and land development loans, while standards for loans secured by multifamily properties and nonfarm nonresidential properties remained basically unchanged on net. In addition, a modest net share of banks reported stronger demand for loans secured by nonfarm nonresidential properties over the third quarter, while demand remained basically unchanged for loans secured by multifamily properties and construction and land development loans.
Mortgages: Banks generally reported leaving standards basically unchanged over the third quarter across residential mortgage loans, including HELOCs. Meanwhile, banks reported stronger demand, on balance, for most residential real estate loan categories.
Personal lending: Standards were basically unchanged for credit card and other consumer loans. Meanwhile, a modest net share of banks reported having eased standards on auto loans. Banks reported having left most queried terms on credit card loans, auto loans and other consumer loans basically unchanged. Meanwhile, demand for credit card and other consumer loans remained basically unchanged, and a moderate net share of banks reported weaker demand for auto loans.
