Fed Survey On Bank Lending Conditions Reveals Exactly What Stock Investors Don’t Want To Hear

A sizable proportion of U.S. banks revealed they had tightened lending standards for commercial and industrial loans to businesses of all sizes in the previous quarter, according to a Fed survey of bank lending practices released on Monday. 

Bank Lending Adjusting to A New Post-Pandemic Reality: The Federal Reserve Senior Loan Officer Opinion Survey (SLOOS) for April, a key gauge for assessing the evolution of demand for loans to businesses and households, revealed that the tightening in banking loans to businesses reflected a less favorable or more uncertain economic outlook, reduced tolerance for risk, worsening of industry-specific problems, and deterioration in their current or expected liquidity position.

On the household front, banks reported a tightening of lending criteria for all types of residential …

Full story available on Benzinga.com

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