Federal Reserve: credit standards steady, demand up for large firms

The U.S. Federal Reserve released its Senior Credit Officer Survey, covering responses from 56 domestic banks and 18 foreign branches. The report says credit standards for commercial and industrial loans to large, medium and small companies remained largely unchanged in the second quarter. However, demand for such loans grew among large and medium‑sized firms, while small‑business demand was flat. In commercial real‑estate lending, standards eased in some categories but overall loan demand was stable. For household credit, mortgage standards showed mixed trends and mortgage demand weakened. Credit‑card standards were tightened with little change in demand, and auto‑loan standards stayed the same while auto‑loan demand fell.

These findings suggest a stable lending environment for businesses, with stronger borrowing interest from larger firms, and a softer housing market.