The report showed 18.8% of large bank respondents reported easing standards on loans for large and middle-market firms on business loans.
When asked the reason for eased terms on business lending, 28 of 30 banks said it was due to â€œmore aggressive competition from other banks or non-bank lenders.â€
Residential home lending, however, reported little change. Some 94.4% of all bank respondents said their mortgage standards had remained â€œbasically unchanged,â€ compared to 3.7% of banks that had tightened them somewhat, and 1.9% that eased standards.
Meantime, 31.5% of banks said demand for prime residential mortgages was weaker, compared to just 7.4% that saw stronger demand. The remainder, 61.1%, saw demand as unchanged in the last three months.
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Lending in the commercial and residential real estate markets, on the other hand, has remained unchanged and tight.