The Federal Reserve’s first-quarter senior loan officer opinion survey (SLOOS) revealed that banks have eased lending standards in several areas following a year-long trend of tightening due to the coronavirus pandemic.
“Banks are beginning to ease up on underwriting standards, but have still not resumed their pre-COVID posture,” said NAFCU Chief Economist and Vice President of Research Curt Long. “With demand returning, the presence of credit unions as a competing source of credit will be particularly important to the overall economy in 2021.”
Here’s a look at some key findings from the first-quarter survey:
Commercial and industrial (C&I) loans:
- on balance, banks reported easing standards for C&I loans to firms of all sizes;
continue reading »