Banks Ease Credit Standards, Fed Says

Banks in the U.S. relaxed credit standards for commercial and industrial loans in the last three months, as demand for consumer loans weakened, a Federal Reserve survey of senior loan officers showed.

Forty-two percent of respondents said they eased standards for commercial and industrial loans from May to July, up from 30% in April. Demand for business loans grew, with 37% of the respondents reporting “moderately stronger” interest from borrowers, up from 20%.

Household demand for loans fell, the report showed. Banks’ willingness to lend to consumers was little changed from April.