Banks Ease Lending Slowdown as Loan Demand Drops in Q3
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Banks tightened lending standards for businesses and households in Q3, but at a slower pace than Q2.
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Demand for loans fell broadly across mortgages, credit cards, and auto loans due to higher interest rates.
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60% of banks reported weaker demand for mortgages in Q3, up from 43% in Q2.
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The pace of banks tightening business lending standards eased in Q3 compared to Q2.
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Loan demand weakened most among small firms, while fewer banks reported weakened demand from larger firms in Q3 vs Q2.