by Calculated Risk on 11/03/2025 02:00:00 PM
From the Federal Reserve: The October 2025 Senior Loan Officer Opinion Survey on Bank Lending Practices
he October 2025 Senior Loan Officer Opinion Survey on Bank Lending Practices (SLOOS) addressed changes in the standards and terms on, and demand for, bank loans to businesses and households over the past three months, which generally correspond to the third quarter of 2025.
Regarding loans to businesses over the third quarter, survey respondents reported, on balance, tighter lending standards for commercial and industrial (C&I) loans to firms of all sizes.2 Banks also reported, on balance, stronger demand for C&I loans from large and middle-market firms and basically unchanged demand from small firms. Furthermore, banks reported generally unchanged standards and demand for most commercial real estate (CRE) loan categories.
For loans to households, banks reported basically unchanged lending standards and stronger demand for residential mortgage loans and home equity lines of credit (HELOCs) on balance. For consumer loans, standards remained basically unchanged for credit card and other consumer loans and eased for auto loans. Meanwhile, demand remained basically unchanged for credit card and other consumer loans and weakened for auto loans.
The October SLOOS included a set of special questions inquiring about the likelihood of approving C&I and credit card loan applications in comparison with the beginning of the year—by firm size and trade exposure levels for C&I loans and by borrower risk for credit card loans. Banks reported being more likely to approve C&I loan applications from both large and small firms with low trade exposures and less likely to approve C&I loan applications from firms of all sizes with high trade exposures. Banks also reported being more likely to approve credit card applications from super-prime and prime borrowers but less likely to approve applications from near-prime or subprime borrowers.
emphasis added
Click on graph for larger image.
This graph on Residential Real Estate demand is from the Senior Loan Officer Survey Charts.
This graph is for demand and shows that demand has been weak since late 2021, but has picked up slightly recently.
The left graph is from 1990 to 2014. The right graph is from 2015 to Q3 2025.
