Banks reported tighter standards, lower demand for most loan types; Stronger demand for HELOCs


by Risk calculated on 07/11/2022 17:06:00

From the Federal Reserve: October 2022 Opinion Survey of Senior Loan Officers on Bank Lending Practices

The October 2022 Senior Loan Officer Opinion Survey of Bank Lending Practices (SLOOS) addressed changes in standards and terms and demand for bank lending to businesses and households over the last three months, which generally correspond to the third quarter of 2022.

When it comes to business loans, survey respondents said, overall, higher standards and lower demand for commerce and industry (C&I) to companies of all sizes in the third quarter. Meanwhile, banks have reported stricter standards and lower demand for all commercial real estate (CRE) loans categories.

For loans to households, granting conditions tightened or remained virtually unchanged for all categories of residential real estate loans (RRE) and demand weakened for all of these loans. In addition, banks reported tougher standards and stronger demand for home equity lines of credit (HELOCs). Standards have tightened for credit card loans and other consumer loans, while standards for auto loans have remained unchanged. Meanwhile, demand strengthened for credit card loans, remained unchanged for other consumer loans and weakened for auto loans.
added emphasis

Click on the graphic to enlarge the image.

This graph on the demand for residential real estate comes from the Senior Loan Officer Survey Tables.

This shows that demand has fallen sharply.

The left chart is from 1990 to 2014. The right chart is from 2015 to Q3 2022.


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