NY Fed senior loan officer survey shows tighter commercial lending

April senior loan officer survey
– Tightened standards on commercial real estate
– Banks reported leaving standards unchanged for overall business loans in Q1
"banks reported tightening most credit policies on Commercial Real Estate loans over the past year. In doing so, banks cited a less favorable or more uncertain outlook for CRE property prices, capitalization rates, and vacancy rates or other fundamentals as their most important factors. Participants also cited a reduced tolerance for risk as an important reason for tightening CRE credit policies. On balance, banks reported weaker demand for CRE loans in the first quarter," the report says.