Finance
Fed Says Tight Credit Standards, Weak Demand Persist at US Banks
- Lending officers’ survey shows improved demand for credit
- While still tight, measures improve from second quarter
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The Federal Reserve said US banks broadly reported tight lending standards and weak demand for loans in the third quarter, though both measures improved somewhat compared with the prior three-month period.
The proportion of US banks tightening standards on commercial and industrial loans for medium and large businesses fell to 33.9%, from 50.8% in the second quarter, according to a Fed survey of lending officers released Monday. Some 62.7% of banks are keeping lending conditions basically unchanged.