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.
Add to Calendar 2021-10-21 14:00:00 2021-10-21 14:00:00 FFIEC IT Examination Handbook Update - Deconstructing the Architecture, Infrastructure & Operations Booklet If you have ever wanted to know what’s new in the Federal Financial Institutions Examination Council (FFIEC) IT Examination Handbook, this is the session for you. In this webinar we will deconstruct the Architecture, Infrastructure & Operations (AIO) booklet by comparing the AIO booklet to the Operations booklet which it replaces. We dig into what’s new to AIO, including how the principles, design and content could impact your credit union during future IT exams. If you are a CISO, ISO, responsible for IT governance, or just want to stay on top of changes to IT regulatory guidelines, this session is for you. Key Takeaways Discover the key differences between the AIO booklet and the Operations booklet it replaces. Identify new principles in the AIO booklet as they relate to IT safety and soundness. Compare and contrast principles and concepts that overlap with the IT Security booklet. Review ideas on how to implement the AIO into your credit union’s Information Security Program. Purchase Now$295 Members | $395 Nonmembers (Additional $50 for CD)One registration gives your entire team access to the live webinar and on-demand recording until October 21, 2022.Go to the Online Training Center to access the webinar after purchase » Who Should Attend? NAFCU Certified Compliance Officers (NCCOs) NAFCU Certified Risk Managers (NCRMS) Chief Executive Officers Chief Financial Officers Chief Information Officers Chief Technology Officers Compliance, risk, and audit titles Education Credits NCRMs will receive 1.0 CEUs for participating in this webinar NCCOs will receive 1.0 CEUs for participating in this webinar CPA credit information is below; recommended 1.0 CPE credits. CPA Certification Credit Information Reviewer: Josie Collins, Associate Director of Education, NAFCU Learning Objectives: See key takeaways Program Level: Basic Prerequisites Needed: None Advance Preparation Needed: None Delivery Method: Group Internet-Based Recommended CPE Credits: 1.0 credits Recommended Field of Study: Regulatory Ethics – Technical About Our Webinars Our webinars are streamed live from NAFCU headquarters near Washington, D.C. Your audio/video feed of the presenters includes presentation slides and downloadable handouts. You can easily submit your questions to the presenters at any time during the live broadcast, with no dialing over the phone! The audio and video stream directly through your computer. Web NAFCU email@example.com America/New_York public
FFIEC IT Examination Handbook Update - Deconstructing the Architecture, Infrastructure & Operations Booklet
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