A “less favorable” or “more uncertain” economic forecast meant fewer domestic banks eased lending standards in the third quarter than in previous quarters, according to the latest Federal Reserve senior loan officer opinion survey on bank lending practices.
A “large number” of banks, domestic and foreign, said they tightened standards on loans to European banks and their affiliates or subsidiaries.
Real estate loan standards were little changed in the quarter, while banks reported easing conditions for “several types of consumer loans.” Demand for loans was termed “mixed,” with some banks reporting weaker demand for C&I loans, while some large domestic banks continued to report stronger demand.
“Several large banks also reported increased demand for commercial real estate loans,” the survey reported. “On the household side, demand for loans to purchase homes reportedly increased, though those reports may reflect the moderate rise in refinancing activity. Demand for home equity loans decreased, and demand for consumer loans reportedly was little changed.”
