U.S. banks keep business loan standards steady in third-quarter

This post was originally published on this site
https://i-invdn-com.akamaized.net/trkd-images/LYNXMPEFA31K8_L.jpg

WASHINGTON (Reuters) – Loan officers at U.S. banks reported keeping lending standards for business loans mostly unchanged in the third quarter but they tightened the terms for commercial real estate loans, a Federal Reserve survey showed on Monday.

The officers also said they were seeing weaker demand for business loans from firms but that interest in most commercial real estate loans changed little.

“Major shares of banks that reported reasons for tightening standards or terms on (business) loans cited a less favorable or more uncertain outlook; a reduced tolerance for risk; and a worsening of industry-specific problems as important reasons,” the U.S. central bank said in its quarterly survey.

U.S. banks previously reported keeping loan standards unchanged for many business loans while tightening commercial real estate loans in the second quarter.

Last week the Fed cut interest rates for the third time this year as insurance against economic headwinds caused by slowing global growth and the U.S.-China trade war, but signaled that it was now likely to hold rates steady unless there was a material deterioration in the U.S. economy.

Banks also reported tightening lending standards for credit card loans while standards for residential real estate loans and auto loans were unchanged, according to the survey.

The Fed surveyed loan officers at 76 domestic banks and 22 U.S. branches and agencies of foreign banks.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Add Comment