Fed Says First-Quarter Loan Standards Tightened, Demand Weakened
- Share of banks tightening credit standards increased slightly
- Broadest share of banks reported weaker demand since 2009
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The Federal Reserve said that banks reported tighter standards and weaker demand for loans in the first quarter, extending a trend that began before recent stresses in the banking sector emerged.
The proportion of US banks tightening terms on commercial and industrial loans for medium and large businesses rose to 46%, up from 44.8% in the fourth quarter of 2022, according to a Fed survey of lending officers released Monday.