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Loan demand weakened in Q4, some lending standards tightened: Fed

Published 02/04/2019, 03:18 PM
© Reuters.  Loan demand weakened in Q4, some lending standards tightened: Fed
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QABA
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  • U.S. banks tightened lending standards for commercial real estate loans, while standards and most terms on commercial and industrial loans remained basically unchanged, according to the Federal Reserve's January 2019 senior loan opinion survey on bank lending practices.
  • Meanwhile, demand for loans to businesses reportedly weakened. The survey covers the past three months, roughly corresponding with Q4 2018.
  • As for loans to households, lending standards for most categories of consumer loans and residential real estate loans remained basically unchanged. Credit cards, though, were an exception, with standards reportedly tightening. Demand for all categories of loans to households weakened.
  • As to what they expect for 2019, banks see standards tightening for all types of business loans as well as credit card loans and jumbo mortgages.
  • Demand for most loan types is expected to weaken, though credit card loan demand is seen as remaining unchanged.
  • Banks foresee loan performance deteriorating for the surveyed categories.
  • ETFs: XLF, FAS, FAZ, KRE, VFH, KBE, UYG, FNCL, IYF, BTO, IAT, IYG, KBWB, RYF, QABA, KBWR, FXO, SEF, FINU, DPST, RWW, FINZ, WDRW, JHMF, FTXO
  • Now read: XLF Weekly: Balance Development, 26.03s-25.44s, Retest Of Key Resistance


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