Net % of Banks Tightening Standards: Business Loans (Weighted by Balances)

## What this measures

Net share of banks tightening standards on business loans (C&I and CRE), weighted by outstanding balances. Net percentage of domestic banks, quarterly.

## Why it matters

Banks tighten before borrowers default. The Senior Loan Officer Opinion Survey asks about 80 domestic banks each quarter whether they changed lending standards and saw changes in demand, by loan type; standards tightening while demand weakens is credit contracting from both sides.

## How to read it

A net percentage: the share of banks reporting tighter standards (or stronger demand) minus the share reporting easier (or weaker). Above zero is net tightening or net stronger demand.

## What it does not say

Opinions about direction over the past three months, not loan volumes. Weighted-by-balances composites count big lenders more; the other series count banks equally.

## Source

Federal Reserve Board, Senior Loan Officer Opinion Survey on Bank Lending Practices (SUBLPDMBSXWBNQ), via FRED. Public domain.