Fed survey: Business lending standards virtually unchanged amid surging demand

Credit standards for business loans were largely unchanged in the first quarter of 2022, according to the Federal Reserve. Senior Credit Officer Opinion Survey released today. Lenders reported a general relaxation of standards for consumer loans during the survey period.

  • C&I. Commercial and industrial credit standards for companies of all sizes were basically unchanged in the first quarter, after four quarters of easing. C&I loan terms were generally relaxed for large and mid-market companies, although net percentages reported tightening of premiums charged on riskier loans and collateral requirements, while for small companies, Net percentages reported tightening costs for lines of credit, premiums charged on riskier loans, and collateral requirements. collateral requirements. The demand for commercial and industrial loans increased in general for small, medium and large companies.
  • CREATE. A modest net share of banks reportedly eased standards for commercial real estate loans secured by multifamily properties, while standards remained basically unchanged, on a net basis, for loans for construction and land development and nonresidential nonfarm loans. Demand was stronger on a net basis for loans secured by multi-family residential properties.
  • Mortgages. In net terms, standards were relaxed for all types of mortgages and home equity lines of credit, although demand fell across the board for all types of mortgages. HELOCS, on the other hand, saw an increase in demand, with a net 5.3% reporting that demand was moderately or substantially stronger.
  • Personal loans. Banks reported greater willingness to make consumer installment loans than three months earlier: a net 18.6% said they would be somewhat more willing to do so. Online, standards have been relaxed on credit cards, car loans, and other types of personal loans. Banks also reported higher net demand across all types of personal loans.
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