Fed says banks eased lending standards in the last three months

WASHINGTON Mon Nov 4, 2013 2:05pm EST

A general view of the U.S. Federal Reserve building as the morning sky breaks over Washington, July 31, 2013. REUTERS/Jonathan Ernst

A general view of the U.S. Federal Reserve building as the morning sky breaks over Washington, July 31, 2013.

Credit: Reuters/Jonathan Ernst

WASHINGTON (Reuters) - Banks have eased lending standards for U.S. commercial loans and residential mortgages in the last three months, the Federal Reserve said on Monday, but they have not witnessed an increase in demand for borrowing.

"Domestic banks, on balance, reported having eased their lending standards and having experienced little change in loan demand, on average, over the past three months," the Fed said in its October quarterly senior loan officers survey.

The poll covered 73 domestic banks, including 37 large lenders with assets of more than $20 billion, as well as 22 U.S. branches of foreign firms.

The U.S. central bank's survey also asked whether a sharp climb in home loan rates over the summer had resulted in any changes. The Fed found that, on net, demand had weakened for home mortgages, while most banks reported a drop in mortgage refinancing activity.

(Reporting by Alister Bull; Editing by Andrea Ricci)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

Recommended Newsletters

Reuters U.S. Top News
A quick-fix on the day's news published with Reuters videos and award-winning news photography and delivered at your choice of one of four times during the day.
Reuters Deals Today
The latest Reuters articles on M&A, IPOs, private equity, hedge funds and regulatory updates delivered to your inbox each day.
Reuters Technology Report
Your daily briefing on the latest tech developments from around the world from Reuters expert tech correspondents.