The US Federal Reserve (Fed) stated that banks in the country tightened loan terms for companies in the second quarter.
The US Federal Reserve (Fed) has released the “Senior Credit Officer Opinion Survey” report on banks’ lending practices.
In the report, which was prepared with responses from 66 domestic banks and 19 foreign bank branches in the USA, it was stated that the banks participating in the survey reported tighter requirements and weaker demand for commercial and industrial loans to businesses and commercial real estate loans.
In the report, which pointed out that banks tightened conditions in each loan category compared to the survey last year, it was stated that they expect to tighten the standards even more in the second half of this year.
In the report, it was emphasized that the rate of domestic banks that tightened credit conditions for medium and large enterprises increased to 50.8 percent. This rate was recorded as 46 percent in the first quarter of the year.
Banks in the US had begun to tighten access to credit as of last year, largely as a result of high borrowing costs caused by the Fed’s rapid rate hikes. The rate of banks tightening their credit standards had increased at the end of last year.
In the face of high inflation in the USA, the Fed, which started to increase interest rates last year, realized the 11th interest rate increase since March last year and increased the policy rate to the range of 5.25-5.50 percent, the highest level in 22 years.