Bank Tighten CRE Loan Standards - Fed Survey

05/11/19

 

Banks are tightening commercial real estate loan standards as demand weakens, according to the Fed's latest Senior Loan Officer Survey. According to the report, banks reportedly tightened standards across all three major CRE loan categories—construction and land development loans, nonfarm nonresidential loans, and multifamily loans—over the past three months. Loan demand in all three major CRE loan categories reportedly weakened during the same period.

 

The survey also showed that C&I loan demand weakened in the quarter and responding banks expect the quality of Asian and European loans to further deteriorate.