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;
continue reading »