NEW YORK – Some domestic banks reported easing their lending standards in the quarter and seeing stronger loan demand, according to the April 2012 Senior Loan Officer Opinion Survey on Bank Lending Practices, released by the Fed Monday.
“Overall, in the April survey, modest net fractions of domestic banks generally reported having eased their lending standards and having experienced stronger demand over the past three months,” the Fed reported.
“Standards on C&I loans to large and middle-market firms, and to small firms, were about unchanged. However, moderate to large net fractions of domestic banks eased many terms on C&I loans to firms of all sizes, with most indicating that they had done so in response to more aggressive competition from other banks or nonbank lenders.”
Banks saw increased business demand. Mortgage loan standards were also steady in the quarter, but demand rose moderately. Other consumer loan standards were also reportedly eased.