October Senior Loan Officer Survey shows easing standards in 3Q 2017

On balance, banks eased their standards and terms on commercial and industrial (C&I) loans and experienced weaker demand for such loans. Meanwhile, banks' standards on most categories of commercial real estate (CRE) loans remained basically unchanged, while demand for CRE loans reportedly weakened.

For loans to households, banks reported that their lending standards on all categories of residential real estate (RRE) loans either eased or remained basically unchanged over the third quarter on balance, and that demand for all categories of RRE loans weakened. In contrast, banks reportedly tightened their standards and terms on credit card and auto loans, while demand for these loans reportedly remained basically unchanged.

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Loan Officer Survey: Weaker demand for commercial loans, stronger demand for mortgages

On balance, demand for commercial and industrial loans weakened over the second quarter of 2017 while banks left their standards on C&I loans basically unchanged. Survey respondents also reported that standards on commercial real estate (CRE) loans tightened while demand weakened on net.

For loans to households, banks reported that lending standards on all categories of residential real estate (RRE) loans eased or remained unchanged, although the net share of banks reporting easing was, at most, moderate in each category.

Banks also reported, on net, that demand for most categories of RRE loans strengthened over the second quarter, although, again, the net share was never more than moderate.

In addition, modest net fractions of banks reported tightening standards and weaker demand for auto and credit card loans.

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