Earlier Fed Survey: Banks reported Tighter Standards, Weaker Demand for Loans except Residential Real Estate

This was released in early August, and is worth a note.

From the Federal Reserve: The July 2020 Senior Loan Officer Opinion Survey on Bank Lending Practices

Regarding loans to businesses, respondents to the July survey indicated that, on balance, they tightened their standards and terms on commercial and industrial (C&I) loans to firms of all sizes.  Banks reported weaker demand for C&I loans from firms of all sizes. Meanwhile, banks tightened standards and reported weaker demand across all three major commercial real estate (CRE) loan categories—construction and land development loans, nonfarm nonresidential loans, and multifamily loans—over the second quarter of 2020.

For loans to households, banks tightened standards across all categories of residential real estate (RRE) loans and across all three consumer loan categories—credit card loans, auto loans, and other consumer loans—over the second quarter of 2020 on net. Banks reported stronger demand for all categories of RRE loans and weaker demand for all categories of consumer loans.

Banks also responded to a set of special questions inquiring about the current level of lending standards relative to the midpoint of the range over which banks’ standards have varied since 2005. Banks, on balance, reported that their lending standards across all loan categories are currently at the tighter end of the range of standards between 2005 and the present.
emphasis added

Senior Loan Officer Survey, CRE Click on graph for larger image.

This graph on Commercial Real Estate lending is from the Senior Loan Officer Survey Charts.

This shows that banks have tightened standards, and that there is weak demand for CRE loans.