Bank lending standards tighten again👇
On the credit side, the Fed's Senior Loan Officer Opinion Survey (SLOOS) showed that lending standards tightened once again in Q2 and at a slightly faster pace. 51% of banks net tightened lending standards for large and medium firms (46% last Q), while 49% of tightened versus smaller firms (vs 47% last Q). Banks continue to blame a worsening economic outlook as the main reason for tightening lending standards, which interestingly stands somewhat contrary to the public market's interpretation of the recent string of strong data. Furthermore, demand for loans were also weak for the quarter, along with the willingness to extend loans to consumers.
