Commercial and industrial loan standards tightened in the past three months, with less demand for C&I loans, according to the Federal Reserve's April 2016 senior loan officer opinion survey, released Monday.
Standards were tightened mostly for large and medium-size firms, while “only a modest net fraction of banks” said they made standards tougher for small firms.
“A moderate net fraction of banks indicated that they were more willing to make consumer installment loans during the first quarter compared with three months prior,” according to the report. “Over the first quarter, a modest net fraction of banks reported easing lending standards on credit cards and other consumer loans, whereas lending standards for auto loans remained basically unchanged. On balance, banks reported that terms across all categories of consumer loans remained basically unchanged over the first quarter.”
Consumer loan demand rose in the quarter, especially for auto loans and consumer loans other than credit card and auto loans. A “modest net fraction” said credit card loan demand rose.
