The Federal Reserve’s July senior loan officer opinion survey (SLOOS) on bank lending practices examined changes in the standards and terms on demand for bank loans to businesses and households generally corresponding to the second quarter of 2023. According to the survey, banks reported tightened lending standards across categories.
A few key findings from the survey:
- survey respondents reported, on balance, tighter standards and weaker demand for commercial and industrial (C&I) loans to firms of all sizes over the second quarter, as well as tighter standards and weaker demand for all commercial real estate (CRE) loan categories;
- banks reported that lending standards tightened across all categories of residential real estate (RRE) loans – especially for RRE loans other than government-sponsored enterprise (GSE)-eligible and government loans – and demand weakened for all RRE loan categories;
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