Economist's Insights

Senior Loan Officer Survey Reports Generally Easier Credit, Broad Weakening of Demand

May 8, 2017

The Fed’s latest survey of senior loan officers offered mixed signals on the aggregate supply of and demand for credit across the major lending categories. Fewer financial institutions tightened lending standards on C&I loans since the previous survey but demand for those same loans eased as well. On the income side, more institutions reported tighter spreads on C&I products. Conversely, in the CRE categories the same institutions reported tighter standards for construction and land development and multifamily loans while those on nonresidential structures were essentially the same. At the same time, demand across all three of the CRE categories softened. On the consumer side, standards for auto loans were essentially unchanged while those for credit card and mortgage loans eased. Demand was weaker across almost every consumer category.