The Federal Reserve’s quarterly survey of senior lenders said that lending standards tightened in the first quarter, softening demand for commercial and industrial loans. was done. The trend that began before the recent stress in the banking sector materialized continued.
announced on the 8thResults of the same survey46% of U.S. banks have tightened terms on lending to medium- and large-sized businesses, up from 44.8% in the fourth quarter of 2022, according to the report.
The collapse of four regional banks since March has thrown the financial sector into turmoil, fueling fears that the U.S. economy could plunge into a recession as financial institutions cut back on credit.
What US Loan Officers Are Saying
Net percentage of local respondents tightening standards for C&I loans rises
Source: Federal Reserve
“This confirmation of tighter lending standards makes a recession even more likely,” Michael Kantrowitz, chief investment strategist at Piper Sandler, wrote in a note to clients after the study was released. . “Nothing is infallible, but it’s hard to argue against that prospect,” he explained.
The survey also showed that loan demand has softened significantly. The share of banks reporting a weakening demand for commercial and industrial loans from large and medium-sized companies rose to 55.6% in the first three months of the year. It was the highest level since 2009 during the global financial crisis. The same percentage was 31.3% in the October-December period last year.
The survey is calculated on a net basis by subtracting the percentage of banks reporting tightened lending standards and weaker lending demand, respectively, from the percentage of banks reporting tighter lending standards and higher lending demand.
Banks cited lower risk tolerance, a more uncertain economic outlook and worsening industry problems as reasons for curbing credit in the first quarter, according to the survey.
“Both loan supply and loan demand appear to indicate a bleak outlook across the senior lender survey,” Michael Feroli, chief U.S. economist at JPMorgan Chase & Co., said in a note. analyzed.
Fed survey of senior lenders shows tightening lending standards and softening demand for commercial and industrial loans
Source: Bloomberg
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Original title:Fed Says First-Quarter Loan Standards Tightened, Demand Weakened、Fed Says Loan Standards Tightened, Demand Weakened (Correct)(excerpt)
(I’ll add and update the economist’s comments, etc.I have corrected the contents of the 4th paragraph in the article before the update)
2023-05-08 18:25:00
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