August 9, 2023 | Daily JAM, Videos |
Today’s video Is Bank Lending Finally Starting To Get Tighter? The Federal Reserve regularly does an opinion survey of bank lending officers to ask if they’re seeing a tightening of credit standards on loans at their banks. In the most recent survey, 50.8% of banks reported tightening lending terms for medium and large business loans in the second quarter-up from 46% in the first quarter. They’re also reporting a rise in demand for loans. In the second quarter, 51.6% reported weaker demand, down from 55% in the previous quarter. We’re seeing the Fed’s policies slowly start to work. Eventually, this tightening will also hit the consumer level, making it more difficult to get a personal loan or a new credit card. This trend is something to watch as banks tighten their lending while demand remains steady.
October 11, 2021 | Daily JAM, Morning Briefing |
Big bank earnings begin on Wednesday and Thursday. Unfortunately, won’t tell us anything useful about the margin pressures from rising global supply chain shipping costs or higher prices for raw materials. Those are the factors that could produce a quarter’s worth of warnings and unpleasant surprises once third quarter earnings season starts on October 13. But to learn about the effect of those margin pressures on earnings we’re going to have to wait for reports from the consumer and industrial companies that are on the front lines of these trends.
August 5, 2020 | Daily JAM, Mid Term |
In a classic credit crunch, banks and other lenders worried that they might have eased loan standards too much during economic good times, start to tighten lending standards because they are worried that we're in or are heading into rougher times for the economy....
May 5, 2014 | Daily JAM, Morning Briefing, Short Term |
Tighter credit policies have been a drag on the U.S. economic recovery. But according to the Federal Reserve’s most recent survey, banks eased lending policies for commercial and industrial loans in the first quarter. For individuals, the Fed found easing in policies for consumer credit card and auto loans and a mixed picture for prime mortgages and home equity lines of credit
