A new Federal Reserve report noted that banks continue to get nervous overall and in particular about commercial real estate. “Regarding loans to businesses, survey respondents reported, on balance, tighter standards and weaker demand for commercial and industrial (C&I) loans to firms of all sizes over the second quarter,” the report said. “Meanwhile, banks reported tighter standards and weaker demand for all commercial real estate (CRE) loan categories.”
Banks Expect to Tighten Standards
