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Federal Reserve Survey: Continued Tightening of Lending Standards Reflect Economic Caution

In a recent article by Billboardinsider, the October 2023 Federal Reserve Bank Survey of Bank Loan Officers indicates a continued trend of tightening lending standards in the commercial and industrial loan sectors. Key highlights from the survey include:

– Commercial and industrial loan standards have tightened for five consecutive quarters, along with a rise in loan pricing in the same sector. 35% of credit officers reported tightening standards over the past three months, while 63% mentioned maintaining the same standards, and only 2% indicated loosening standards.

– 50% of credit officers stated an increase in the premium charged on riskier loans or credit line.

– The primary reason cited for tightening standards by 87% of credit officers was a less favorable economic outlook.

The survey’s findings suggest a growing caution among lenders due to concerns about economic conditions. Billboard Insider’s analysis of the situation interprets bank loan officers’ expectations of a deteriorating economy. This sentiment aligns with actions taken by companies like OUTFRONT and Lamar, which have scaled back their capital expenditure and acquisition plans.


The advice from an economist at Billboard Insider’s bank underscores the need for proactive preparation for potential economic challenges. Their recommendation highlights the importance of readiness, emphasizing that those who prepare in advance will be better equipped to navigate economic downturns and identify emerging opportunities.