Fed Survey: U. S. Credit Rules Eased

Banks largely eased credit standards for businesses, commercial real estate investors and households in Q3, as the U.S. economy weathered the latest wave of the coronavirus pandemic, a Federal Reserve survey reported on Monday.

The Fed’s Senior Loan Officer Survey, offering evidence of continued economic momentum, said banks “generally reported having eased standards” for business loans by lowering rates, expanding credit lines or imposing less restrictive terms and conditions.

Banks in general also eased standards for consumer credit card and vehicle loans, by lowering credit score requirements or increasing credit limits.

While demand for credit cards increased, demand for vehicle loans declined, the Fed reported, a possible sign that price increases had begun to hit demand for vehicles, or that the surge of buying over the last year had jumped to a remarkable peak.