Fed says banks eased lending standards in the last three months
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.