Newsroom
Fed survey: Banks ease lending standards as loan demand returns
The Federal Reserve's second-quarter senior loan officer opinion survey (SLOOS) revealed that banks have eased lending standards in several areas following a year-long trend of tightening due to the coronavirus pandemic.
"Credit constraints are easing, indicating that lenders' optimism matches that of consumers," said NAFCU Chief Economist and Vice President of Research Curt Long. "Although the survey was conducted before COVID cases began to rise in the U.S., increasing vaccination rates and the experience of other Western nations with earlier exposure to the delta variant provide reasons for optimism."
Here's a look at some key findings from the first-quarter survey:
- regarding loans to businesses, respondents to the July survey, on balance, reported easier standards and stronger demand for commercial and industrial loans to firms of all sizes over the second quarter;
- for commercial real estate (CRE), standards on multifamily and construction and land development loans eased, while standards on loans secured by nonfarm nonresidential properties remained basically unchanged;
- banks reported stronger demand for all CRE loan categories;
- for loans to households, banks eased standards across most categories of residential real estate (RRE) loans, on net, and reported stronger demand for most types of RRE loans over the second quarter;
- over the second quarter, a significant net share of banks eased standards for credit card loans, and a moderate net share of banks eased standards for auto loans and for other consumer loans; and
- regarding demand for consumer loans, significant net shares of banks reported stronger demand for auto and credit card loans, and a modest net share of banks reported stronger demand for other consumer loans.
The latest edition of the survey also included a set of special questions inquiring about the current level of lending standards relative to the midpoint of the range over which banks' standards have carried since 2005.
This senior loan officer survey was based on responses from 75 domestic banks and 22 U.S. branches and agencies of foreign banks.
Access the full survey from the Fed. See NAFCU's recent economic analysis reports here.
Share This
Related Resources
Add to Calendar 2024-06-26 14:00:00 2024-06-26 14:00:00 Gallagher Executive Compensation and Benefits Survey About the Webinar The webinar will share trends in executive pay increases, annual bonuses, and nonqualified benefit plans. Learn how to use the data charts as well as make this data actionable in order to improve your retention strategy. You’ll hear directly from the survey project manager on how to maximize the data points to gain a competitive edge in the market. Key findings on: Total compensation by asset size Nonqualified benefit plans Bonus targets and metrics Prerequisites Demographics Board expenses Watch On-Demand Web NAFCU digital@nafcu.org America/New_York public
Gallagher Executive Compensation and Benefits Survey
preferred partner
Gallagher
Webinar
Add to Calendar 2024-06-21 09:00:00 2024-06-21 09:00:00 The Evolving Role of the CISO in Credit Unions Listen On: Key Takeaways: [01:30] Being able to properly implement risk management decisions, especially in the cyber age we live in, is incredibly important so CISOs have a lot of challenges here. [02:27] Having a leader who can really communicate cyber risks and understand how ready that institution is to deal with cyber events is incredibly important. [05:36] We need to be talking about risk openly. We need to be documenting and really understanding what remediating risk looks like and how you do that strategically. [16:38] Governance, risk, compliance, and adherence to regulatory controls are all being looked at much more closely. You are also seeing other technology that is coming into the fold directly responsible for helping CISOs navigate those waters. [18:28] The reaction from the governing bodies is directly related to the needs of the position. They’re trying to help make sure that we are positioned in a way that gets us the most possibility of success, maturing our postures and protecting the institutions. Web NAFCU digital@nafcu.org America/New_York public
The Evolving Role of the CISO in Credit Unions
preferred partner
DefenseStorm
Podcast
AI in Action: Redefining Disaster Preparedness and Financial Security
Strategy
preferred partner
Allied Solutions
Blog Post
Get daily updates.
Subscribe to NAFCU today.