Fed SLOOS on Bank Lending shows stronger demand for C+I loans
The Fed’s July Senior Loan Officer Opinion Survey of bank lending practices suggests a positive picture for commercial and industrial loans, particularly for large firms, presumably led by AI, though elsewhere the survey presents a less impressive picture.
After six straight quarters in which lending standards for C+I loans were tightened for large and medium firms, July’s findings were unchanged from April, while only a net 1.8% tightened standards on small firms, the lowest since Q2 2022.
A net 16.1% reported stronger demand for C+I loans from large and medium firms, up from 4.8% in April and meaning four straight positive quarters after two straight negatives. For small firms a net 3.6% saw stronger demand, following two neutral quarters and the highest since Q3 2022.
For commercial real estate and mortgages the supply picture was slightly improved but demand remained weak. For consumer loans the supply picture was fairly neutral and the demand picture mixed, with stronger demand from credit cards, but autos weaker and other loans less negative.