(Click on image to enlarge)

Chart on C&I loans from Fed survey, blue boxes showing recessions added by Mish

Fed Survey on Bank Lending Practices

The April 2023 Fed Survey on Bank Lending Practices shows tightening credit and weakening demand across a wide range of consumer and commercial products 

• Commercial: Survey respondents reported, on balance, tighter standards and weaker demand for commercial and industrial (C&I) loans to large and middle-market firms as well as small firms over the first quarter.
• Commercial: Banks reported tighter standards and weaker demand for all commercial real estate (CRE) loan categories.
• Consumer: Banks reported that lending standards tightened across all categories of residential real estate (RRE) loans other than government-sponsored enterprise (GSE)-eligible and government residential mortgages.
• Consumer: Demand weakened for all RRE loan categories. 
• Consumer: Banks reported tighter standards and weaker demand for home equity lines of credit (HELOCs). 
• Consumer: Standards tightened for all consumer loan categories; demand weakened for auto and other consumer loans, while it remained basically unchanged for credit cards.

Commercial Real Estate Tightening

(Click on image to enlarge)

More Tightening Coming

Over the remainder of 2023, banks reported expecting to tighten standards across all loan categories. Banks most frequently cited an expected deterioration in the credit quality of their loan portfolios and in customers' collateral values, a reduction in risk tolerance, and concerns about bank funding costs, bank liquidity position, and deposit outflows as reasons for expecting to tighten lending standards over the rest of 2023.

Powell Says No Recession

Although the Fed consensus is for a recession, Fed Chair Jerome Powell's personal opinion is no recession. 

For the Fed's admission of recession, please see Fed Minutes Now Predict a Recession This Year Along With Higher Unemployment

Market Ignores Fed Chair Powell's Comments, Prices in More Interest Rate Cuts

For discussion of Powell's personal opinion, please see Market Ignores Fed Chair Powell's Comments, Prices in More Interest Rate Cuts

More By This Author:

The Budget Deficit Is Nearly $2 Trillion And Rising Fast
Battles Rage Over Biden's Clean Energy Projects As The Size And Cost Jump
Is China's Huawei A Threat Or Is U.S. Snooping The Real Phone Threat?