Banks Tighten Lending Standards at Slower Pace as Loan Demand Falls Across mortgages, Credit Cards, and Auto Loans
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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 as higher interest rates impacted the economy.
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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 standards may be easing as the Fed's rate hikes reach a plateau.
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Loan demand fell most among small firms, with over 50% of banks seeing decreased demand from small businesses.