Lending Survey Indicates Tightened Standards, Lower Demand
July 10, 2010 Updates Comments Off
The Federal Reserve has released the October 2007 Senior Loan Officer Opinion Survey on Bank Lending Practices which addresses changes in the supply of and demand for bank loans both to businesses and consumers over the previous three months which, we presume, corresponds to the third quarter of 2007. In this particular survey participating banks were questioned about changes in their lending policies for backup lines of credit for commercial paper and prime nonconforming residential mortgage loans. Banks were asked separately about changes in credit standards and demand for prime, nontraditional, and subprime residential mortgages. The report summarizes responses from 52 domestic banks and 22 foreign banking institutions, a respondent pool which accounts for the majority of the bank lending in the country.