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Dallas Fed Survey Sees NPLs Increasing Further

US DATA
  • “Loan volumes grew for the first time in over a year despite credit standards continuing to tighten, and loan pricing continuing to rise.”
  • The separate category of loan demand was less optimistic though. Recent demand declined again, albeit by the least amount since Aug’22, whilst future loan demand dipped back to a net negative after two positive readings – see chart.
  • “Credit tightening accelerated for commercial and residential mortgages while it decelerated for commercial and industrial loans and consumer loans.”
  • “Loan nonperformance picked up slightly overall.”
  • “Bankers’ outlooks turned pessimistic: they expect a modest decrease in loan demand six months from now in addition to a deterioration in loan performance and overall business activity.”
  • The survey is collected Apr 30 – May 8 vs the Fed’s SLOOS for Q1.

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