Continued tightening of lending standards, weak demand revealed in Fed survey
The Federal Reserve's third-quarter senior loan officer opinion survey (SLOOS) revealed banks' continued tightening of standards and weakening demand for loans to consumers.
“Banks continue to pull back on credit extension," said NAFCU Chief Economist and Vice President of Research Curt Long. "In times of scarce credit, the role of credit unions in providing a path to low-cost loans grows even more important."
During the third quarter, a significant net shares of banks reported tightened lending standards for credit loans.
A modest net fraction of banks experienced stronger demand for auto loans while all other consumer loans continued to weaken. However, reported changes in demand for consumer loans differed by bank size, with large banks reporting stronger or unchanged demand for all categories while other banks reported demand to be weaker.
In relation to demand for residential real estate loans, a moderate net share of banks tightened lending standards for most mortgage loan categories, including government-sponsored enterprise (GSE)-eligible residential mortgages.
This senior loan officer survey was based on responses from 72 domestic banks and 22 U.S. branches and agencies of foreign banks.
Add to Calendar 2023-11-30 09:00:00 2023-11-30 09:00:00 Safeguarding Credit Unions with Threat Intelligence Listen On: Key Takeaways: [1:01] What is threat intelligence, and why is it important to CUs? [2:14] What are threat intelligence feeds, and what role do they play in strengthening CUs? [4:41] Leveraging threat feeds and integrating intelligence into tools is crucial. [6:35] Learn what threat CUs should be most concerned about. [7:39] Phishing is ever-evolving, and user awareness is critical. [10:43] Learn how Defense Storm uses feeds to protect its customers. [13:28] Threat intelligence is not as complicated as some think; initiation can be easy through Slack, discussions, and a reporting culture. Web NAFCU firstname.lastname@example.org America/New_York public
Add to Calendar 2023-11-28 09:00:00 2023-11-28 09:00:00 Growing Creatively & Innovatively in 2024 Listen On: Key Takeaways: [0:58] What can credit unions do to best prepare themselves for 2024? [2:12] Although he sees a glimmer of hope, Jack points out that the liquidity crisis and slow prepayment speeds hamper rapid recovery. [5:22] We discuss how credit unions seek low loan growth through member-centric strategies such as second mortgages and home improvement lending. [7:34] Credit unions are leveraging advancing technology for member-focused engagement. [9:31] How will technology continue to evolve and affect credit unions? [11:43] What role does AI play in innovative growth? [14:14] Credit unions adopt technology for efficiency, enabling staff to focus on personalized member interactions, especially with younger generations. [17:14] Closing thoughts, emphasizing competition against banks and fintech for younger generations. Web NAFCU email@example.com America/New_York public
Get daily updates.
Subscribe to NAFCU today.