During the second quarter of the year, banks reported unchanged lending standards for commercial and industrial loans to firms of all sizes, with stronger demand for C&I loans to large and middle-market firms but unchanged demand for loans to small firms, according to the Federal Reserve’s latest senior loan officer opinion survey. Banks also reported generally easier standards and unchanged demand for commercial real estate loans.
For loans to households, banks reported mixed changes in lending standards and weaker demand for residential real estate loans. Standards were unchanged and demand strengthened for home equity lines of credit (HELOCs). In addition, standards tightened for credit card loans, with demand remaining basically unchanged. Standards remained basically unchanged for auto and other consumer loans, while demand weakened for auto loans and remained unchanged for other consumer loans.
The survey also contained two sets of special questions on lending expectations to non-depository financial institutions (NDFIs). Banks reported that the levels of standards for all queried types of NDFI loans — including loans to mortgage credit intermediaries, business credit intermediaries, private equity funds, consumer credit intermediaries and other NDFIs — are at the tighter ends of their historical ranges.
