Bank lending standards continue to tighten according the the October 2023 Federal Reserve Bank Survey of Bank Loan Officers.  Some of the highlights.

• Commercial and industrial loan standards have tightened for 5 consecutive quarters as has commercial and industrial loan pricing.
• 35% of credit officers said that they have tightened commercial and industrial loan standards over the past 3 months.  63% of credit officers say standards have remained the same.  Only 2% of lending officers have loosened standards.
• 50% of credit officers said they have increased the premium charged on riskier loans or credit lines.
• When asked why they were tightening 87% of credit officers cited a less favorable economic outlook

This chart shows the trends.

Billboard Insider’s take:   Bank loan officers expect the economy to deteriorate.  So do OUTFRONT and Lamar because they dialed back their capexp and acquisition plans. The economist at Billboard Insider’s bank just wrote this: “If you are still experiencing good times, now is the time to prepare for bad times.  Whether a recession occurs in the next three months or the next three years, those who prepare in advance will be those who are in a position to weather the “economic storm” and look for opportunities that will arise.”

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