Banks in general tightened standards on commercial and industrial and commercial real estate loans in the last quarter of 2015, while easing standards on household loans, according to the January 2016 Senior Loan Officer Opinion Survey on Bank Lending Practices, released by the Fed Monday.
Demand was down on C&I loans, but up for CRE loans in the quarter, banks expect standards on C&I and CRE loans to tighten over 2016 and loan performance of C&I loans and loans secured by multifamily residential properties to deteriorate.
"Moderate net fractions of banks reported weaker demand across most categories of residential real estate loans, while demand for auto loans and credit card loans remained basically unchanged on net," according to the survey.
Banks expect to "to ease standards on some categories of residential mortgage loans over 2016 and that delinquency and charge-off rates on subprime auto loans would increase."
