Fed Says Banks Tightened Credit Standards in Fourth Quarter
- Some 14.5% of banks tightened loan standards, least since 2022
- Demand picture for loans, while still weak, improved somewhat
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The Federal Reserve said US banks reported stricter credit standards in the fourth quarter, although the proportion of those tightening standards shrank from the prior period.
The net share of US banks that tightened standards on commercial and industrial loans for medium and large businesses compared to the prior period dropped to 14.5%, from 33.9% in the third quarter, according to a Fed survey of lending officers released Monday. That was the smallest such share since 2022.