by calculated risk May 6, 2024 02:49:00 PM
From the Federal Reserve: April 2024 Senior Loan Officer Awareness Survey on Bank Loan Practices
The April 2024 Senior Loan Officer Opinion Survey on Bank Lending Practices (SLOOS) examines changes in the standards and terms of bank lending to businesses and households over the past three months (typically corresponding to the first quarter of 2024). , and demand.
When it comes to lending to businesses, survey respondents overall reported: Stricter standards and sluggish demand Commercial and industrial (C&I) lending performance for businesses of all sizes in the first quarter. Meanwhile, the bank reported: Tighter standards and weaker demand for all commercial real estate (CRE) Loan category.
Banks also answered a series of specific questions regarding lending policy changes and demand for CRE loans over the past year. For all categories of CRE loans, banks will be able to respond to all questions asked, including the spread of loan interest rates over cost of funds, maximum loan size, loan-to-value ratio, debt service coverage ratio, and interest-only payment period. The company reported that it had tightened its lending policy.
For household loans, banks report: Tighter lending standards for some categories of residential real estate (RRE) loans whereas for others it remains balanced. meanwhile, Demand is weak across all RRE loan categories. Additionally, the bank reported: Tightening standards and weak demand for home equity lines of credit (HELOCs). moreover, Tighter standards for credit cards, auto and other consumer loans reportedly weakened demand..
Banks overall reported tightening lending standards in most loan categories in the first quarter, but the net share of banks said they tightened lending standards in most loan categories more than in the fourth quarter of last year. reported.
Emphasis added
Click on the graph to see a larger image.
This graph on residential real estate demand Senior Loan Officer Survey Form.
This graph is about demand and shows that demand is decreasing.
The graph on the left is from 1990 to 2014. The graph on the right is from 2015 to the first quarter of 2024.
