MNI BRIEF: US Bank Lending Standards Tighten, Fed Survey Shows

U.S. banks tightened standards and terms on a wide variety of loans in the third quarter, according to a Fed survey of bank officers published on Monday.

Banks reported weaker demand for commercial and industrial loans, and stronger demand for credit card loans, auto loans, and most residential real estate loans.

"Significant net shares of banks increased collateralization requirements, loan covenants, premiums charged on riskier loans, and the use of interest rate floors for both loans to small firms and loans to large and middle-market firms," the report said. Most banks said in response to a special question that loans in forbearance were no more than 5% of their totals.