Business Lending:
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C&I Loans (Commercial and Industrial loans):
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Lending standards tightened for firms of all sizes.
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% of Banks tightening was the highest in more than a year
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Loan terms also tightened: smaller credit lines, higher premiums, stricter covenants and collateral requirements.
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Demand weakened significantly across all firm sizes.
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Key reasons for tightening: uncertain economic outlook, regulatory concerns, industry-specific problems, and reduced risk appetite.
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CRE Loans (Commercial Real Estate):
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Tighter standards for construction & land development and nonfarm nonresidential loans.
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Multifamily loan standards were mostly unchanged.
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Demand was mixed: weaker at most banks, but some large and foreign banks reported stronger demand.
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Over the past year, banks tightened loan-to-value ratios, debt service coverage, and reduced interest-only periods.
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Office loans saw the most tightening across all queried policy areas.
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Household Lending:
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Residential Real Estate Loans (RRE):
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Lending standards mostly unchanged, except modest tightening for non-QM jumbo mortgages.
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Demand weakened across most mortgage categories.
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HELOC standards were stable, but demand for HELOCs modestly strengthened.
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Consumer Loans:
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Credit card lending standards tightened slightly (especially credit limits).
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Auto and other consumer loan standards remained mostly unchanged.
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Demand weakened for credit card and other consumer loans; auto loan demand was stable.
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This article was written by Greg Michalowski at www.forexlive.com.
