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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
FED
There was less tightening in lending standards in Q2 than that of Q1 across the board, offering a relative boost to growth.
- Commercial & Industrial loans, having bucked the trend with a modest renewed tightening last quarter, this time saw an easing in standards with only a net 7.9% of large firms tightening (vs 15.6% in Q1) and 8.2% of small firms tightening (vs 19.7%). The two see the lowest additional tightening since 2Q22.
- Residential Mortgage lending standards are the next most notable category, with the broad sweep of categories either seeing zero tightening or the first net easing since 4Q22 or 2Q22.
Elsewhere, other categories that have seen greater delinquencies and insolvency fears unsurprisingly saw the least moderation in the share seeing tightening on the quarter. Specifically:
- CRE loan lending standards again saw a sizeable 23.8% share tighten for construction and land development after the 24.6% in Q1. It remains large historically but significantly below the 70% averaged in 2023 (with that share ramping up prior to SVB-related regional bank fallout).
- Finally, consumer loans saw the greatest continued tightening share for credit cards (20% after 21.1%) although auto loans saw a pause in tightening (0% after 9.5% for the lowest since 2Q22).
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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