U.S. banks left loan standards unchanged on commercial and industrial loans to large and mid-sized firms during the second quarter, even as they eased standards on such loans to smaller firms and eased most terms for all size firms, according to a survey of bank officers published on Monday.
The U.S. Federal Reserve’s quarterly survey of senior loan officers also showed that lending standards on commercial and industrial loans are generally easier than has been typical in the period from 2005 until the present.
That’s notable because a rise in U.S. business debt has raised red flags at the U.S. central bank over financial stability vulnerabilities.
Meanwhile standards for commercial and real estate lending, as well as subprime credit card and auto loans, are tighter than has been the norm from 2005 to now, the survey showed.
For households the picture was somewhat different. In the second quarter banks tightened standards on credit card loans, the report showed, while they left standards for auto loans and most categories “basically unchanged” during the period. Demand for most household loans rose, the survey showed.