Fed Survey: Business Credit Standards Remain Largely Unchanged Amid Rising Demand

Lending standards for business loans remained largely unchanged in the first quarter of 2022, according to the Federal Reserve opinion survey of senior loan officers published today. Lenders reported a general relaxation of standards for consumer loans during the survey period.

  • THIS. Commercial and industrial lending standards for businesses of all sizes remained virtually unchanged in the first quarter, following four quarters of easing. C&I loan terms generally eased for large and medium-sized businesses, although net percentages signaled a tightening in premiums charged on riskier loans and collateral requirements, while for small businesses, net percentages increased. reported tighter costs for lines of credit, premiums charged on riskier loans and collateral requirements. Demand for C&I loans was generally up for small, medium and large businesses.
  • CREATE. A modest net share of banks reportedly eased standards for commercial real estate loans secured by multi-family properties, while standards remained virtually unchanged, on the net, for construction and land development loans and loans non-residential non-agricultural. Net demand was stronger for loans secured by multi-family residential properties.
  • Mortgages. On the net, standards have eased for all types of mortgages and home equity lines of credit, although demand has generally declined for all types of mortgages. HELOCS, on the other hand, saw demand increase, with a net rate of 5.3% indicating that demand was moderately or significantly higher.
  • Personal loan. Banks reported a greater willingness to provide consumer installment loans than they had three months earlier – a net 18.6% said they would be somewhat more willing to do so To do. On the net, standards have eased on credit cards, car loans and other types of personal loans. Banks also reported an increase in net demand for all types of personal loans.

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