Tighter lending standards for CRE and RRE. Loan buffet days are over regards.

by scott_jr

The April 2023 Senior Loan Officer Opinion Survey on Bank Lending Practices (SLOOS) is reporting tighter lending standards for CRE and RRE. What this means is less liquidity in the country overall, especially small businesses and regards with crappy credit scores. The loan buffet days are over.

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  • Regarding loans to businesses, survey respondents reported, on balance, tighter standards and weaker demand for commercial and industrial (C&I) loans to large and middle-market firms as well as small firms over the first quarter.
  • Meanwhile, banks reported tighter standards and weaker demand for all commercial real estate (CRE) loan categories.
  • For loans to households, banks reported that lending standards tightened across all categories of residential real estate (RRE) loans other than government-sponsored enterprise (GSE)-eligible and government residential mortgages, which remained basically unchanged.
  • Demand weakened for all RRE loan categories. In addition, banks reported tighter standards and weaker demand for home equity lines of credit (HELOCs).
  • Standards tightened for all consumer loan categories; demand weakened for auto and other consumer loans, while it remained basically unchanged for credit cards.

Source: www.federalreserve.gov/data/sloos/sloos-202304.htm

 

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