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Tightening Credit: Q4 2023 Lending Practices and Alternative Channels

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Source: Federal Reserve
Tightening Credit: Q4 2023 Lending Practices and Alternative Channels
Photo: Federal Reserve
TL;DR

The January 2024 Senior Loan Officer Opinion Survey on Bank Lending Practices (SLOOS) revealed that banks tightened standards and reported weaker demand for commercial and industrial (C&I) loans to businesses of all sizes, as well as for all commercial real estate (CRE) loan categories. Additionally, lending standards tightened for residential real estate (RRE) loans and home equity lines of credit (HELOCs), while demand weakened for various loan categories. Banks also expect lending standards to remain unchanged for C&I and RRE loans, but to tighten further for CRE, credit card, and auto loans in 2024, with loan demand expected to strengthen across all categories and loan quality to deteriorate.

Topics:businessfinance#bank-lending#economic-outlook#finance#lending-practices#loan-demand#loan-standards
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  1. The January 2024 Senior Loan Officer Opinion Survey on Bank Lending Practices  Federal Reserve
  2. Almost Every Kind of Loan Got Harder To Get in Fourth Quarter  Investopedia
  3. As Banks Tighten Lending, Are Private and Alternative Credit Channels Gaining Ground?  PYMNTS.com
  4. US banks in Q4 reported tighter lending standards to households  ForexLive
  5. Fed Says Banks Tightened Credit Standards in Fourth Quarter  Bloomberg

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