A Federal Reserve report Monday showed banks raised their lending standards for business and consumer loans after the collapse of three large banks.
More lenders are tightening their standards in the wake of increasing turmoil within the banking sector, according to the Federal Reserve’s quarterly Senior Loan Officer Opinion Survey (SLOOS). The survey also found that a majority of banks expect to further tighten their credit across all loan categories this year.
About 46 percent of all banks said they had raised standards for business loans known as commercial and industrial loans, up from just under 45 percent in the previous quarter. However, banks were tightening credit before the bank failures. A year ago, slightly more banks were easing credit standards than raising them….