Fed survey: Banks are tightening up their lending standards after rate hikes, turmoil | CNN Business

More lenders have stiffened their standards in the wake of increasing turmoil within the banking sector, according to the Federal Reserve’s quarterly Senior Loan Officer Opinion Survey released Monday. Survey respondents attributed the changes in lending standards to economic uncertainty, a reduced appetite for risk, deterioration in collateral values and broader concerns about banks’ funding costs and liquidity positions, according to the Fed report.

“I think we knew that before the survey, but now we have that quantified here with how it’s impacting lending.” For consumers, the impacts have been varied, according to a separate report released Monday by the Federal Reserve Bank of New York. The sharp decline in perceived credit access and availability seen in March wasn’t replicated in this month’s survey results.

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Banks tighten credit terms, see loan demand drop, Fed survey showsCredit conditions for U.S. business and households continued tightening in the first months of the year, according to a Federal Reserve survey of bank loan officers, but the results seemed to mark the accumulating impact of Fed monetary tightening rather than the cliff-like decline in credit some feared after the March collapse of Silicon Valley Bank.
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