Fed Says US Banks Tightened Credit Further in Wake of Failures
- Banks’ loan demand remained weak in the past quarter
- Commercial real estate was a particular focus of tightening
The US Federal Reserve in Washington, DC.
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The Federal Reserve said that banks reported tighter standards and continued weak demand for loans in the second 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 50.8%, up from 46% in the first quarter, according to a Fed survey of lending officers released Monday.