Commercial and industrial loan standards were little changed in the second quarter of 2015, although banks some terms, namely spreads and covenants, were eased for larger firms, according to the Federal Reserve's Senior Loan Officer Opinion Survey on Bank Lending Practices, released Monday.
Respondents also noted standards on commercial real estate loans were steady.
"On the demand side, modest to moderate net fractions of banks indicated having experienced stronger demand for C&I and CRE loans during the second quarter," according to the report.
Household loan standards were eased in "a number of categories of residential mortgage loans," while "most banks" held steady on standards and terms for consumer loans.
"On the demand side, moderate to large net fractions of banks reported stronger demand across most categories of home-purchase loans," the report noted. "Similarly, respondents experienced stronger demand for auto and credit card loans on net."
The Fed added, "Responses to a set of annual questions on the level of lending standards suggested that banks' lending standards relative to longer term norms were notably different across major loan types. Domestic and foreign banks generally reported that standards for all categories of C&I loans remained either easier than or near the midpoints of their ranges over the past decade. After reporting that standards had eased on the quarterly surveys over the course of the past year, domestic banks also generally indicated that standards on most types of CRE loans were now somewhat easier than or near the midpoints of their ranges."
But, while household loan standards eased "somewhat" in the "past few years," some banks said standards for "residential real estate loans and consumer loans to subprime borrowers were at least somewhat tighter than the midpoints of their bank's longer-term ranges."
