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Fed Survey: Loan Easing Trend Slows as Recovery Pace Cools in Q3.

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ENPNewswire-November 9, 2021--Fed Survey: Loan Easing Trend Slows as Recovery Pace Cools in Q3

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Release date- 08112021 - While banks continued to remain in a posture of easing standards on commercial, mortgage and personal loan products, the easing trend slowed in the third quarter from the prior two quarters, according to the Federal Reserve's senior loan officer opinion survey released today.

C&I. Fewer banks eased standards for commercial and industrial loans in the third quarter, with 18% on net easing for large and middle-market firms and 11% easing for small firms. Banks easing standards and terms were most likely to cite more aggressive competition as the reason. Banks offered mixed reports on demand, with 8% on net reporting stronger demand from large and midsize firms and no change on net reported in small firms' demand. Among banks seeing stronger demand, the most important factors were client M&A financing needs. Banks reporting weaker demand cited growth in customers' internally generated funds.

CRE. The commercial real estate market cooled somewhat in the third quarter, with just 3% on net reporting stronger demand for construction and land development loans (down from 21% in Q2) and 21% on net reporting stronger multifamily loan demand (down from 37% in Q2). Nearly...

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