Fed survey says lending standards are steady

August 5, 2026

The Federal Reserve’s Senior Loan Officer Opinion Survey (SLOOS) shows that bank lending standards to businesses of all sizes, both large and small, were steady during the second quarter. In commercial real estate (CRE), banks eased lending standards the most since early 2022. That’s a sign that some appetite for risk is returning. Lending standards for households were mixed, with tighter conditions for credit cards and easier terms for auto loans.

On the demand side, more banks reported firm demand for business loans and commercial real estate loans, mostly from large firms (defined as having $50 million or more in revenues). About 16% of banks cited stronger demand for commercial and industrial (C&I) loans from large businesses; that figure was just 4% for small firms. A significant share of foreign banks, nearly one quarter of respondents over the past year, reported stronger demand for C&I loans, pointing to investment potential from overseas. 

For loans to consumers, it was a mixed picture. Residential real estate (RRE) loan demand remained weak due to the ongoing housing winter lasting more than five years. About 11% of banks reported weaker RRE demand. This measure has been negative since 2021, with the exception of the third quarter of 2025. The same share of banks reported weaker demand for auto loans. Demand for credit card loans was steady. 

For households overall, seven percent of banks tightened standards for credit cards. Five percent of banks eased conditions for auto loans.

The July 2026 SLOOS included special questions asking respondents to describe the current levels of lending standards at their banks. Respondents were asked to consider the range over which their lending standards have varied since 2005 and to report the current level compared to the midpoint of that range.

For C&I loans, banks reported that the current level of standards is easier than the midpoint of their historic ranges. Many banks reported their lending standards have tightened for residential loans.