Changes in the standards for bank loans to businesses and households over the past three months were revealed in the January 2019 Senior Loan Officer Opinion Survey on Bank Lending Practices.
Respondents noted that banks tightened standards for commercial real estate (CRE) loans, while standards and most terms on commercial and industrial (C&I) loans remained mainly unchanged.
The report also found that demand for loans to businesses reportedly weakened.
In terms of household loans, banks reported that their lending standards for most categories of consumer loans and residential real estate loans remained mainly unchanged. However, standards for credit cards tightened over the fourth quarter.
In addition, banks reported weaker demand for all categories of loans to households.
Looking ahead, banks expect to tighten standards for all categories of business loans as well as credit card loans and jumbo mortgages. Further, demand for most loan types is expected to weaken except for credit card loans, which is expected to remain unchanged. Also, banks anticipate that loan performance will deteriorate for all surveyed categories.
The report was prepared by David Glancy and Max Gross from the Division of Monetary Affairs of the Board of Governors of the Federal Reserve System. Responses were received from 73 domestic banks and 22 U.S. branches and agencies of foreign banks. Responses were submitted between Dec. 21, 2018, and Jan. 7, 2019.