Bank Managers Report Deceleration to Tightening Lending Standards

Despite a trend of stricter standards in the 4th quarter for most loan types, the January 2024 Senior Loan Officer Opinion Survey on Bank Lending Practices (SLOOS) indicated a decrease in the number of banks tightening lending standards compared to the previous quarter, across all loan types. January’s SLOOS also featured special questions on banks’ expectations for 2024 revealing anticipated tighter lending standards for commercial real estate, credit cards, and auto loans. Banks also foresee rising loan demand, especially in residential real estate and commercial and industrial sectors.

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