US Banks Seeing Tight Credit Standards, Weak Loan Demand, Fed Survey Shows

The Federal Reserve said US banks broadly reported tight lending standards and weak demand for loans in the third quarter, though both measures improved somewhat compared with the prior three-month period.

The proportion of US banks tightening standards on commercial and industrial loans for medium and large businesses fell to 33.9%, from 50.8% in the second quarter, according to a Fed survey of lending officers released Monday. Some 62.7% of banks are keeping lending conditions basically unchanged.