News & Insights
Welcome to the FIA News & Insights, a one-stop resource that includes insights from senior investment professionals on timely market events, their views on the economy and their respective markets. Find updates on the latest media information on Frost Investment Advisors, LLC and the most recent reprints, as well as, archival information for your reference.
Banks are Stingier and Inflation is Lurking
Bank Credit is Getting Hard to Come By
The latest Fed Senior Loan Officer Opinion Survey doesn’t make for cheerful reading. Bank lending standards tightened significantly and demand for loans plummeted. The constriction was greatest for construction loans and real estate (both nonresidential and multifamily), followed by commercial and industrial loans for businesses of all sizes. The last six times we experienced C&I tightening of this magnitude, we entered a recession. Banks’ willingness to make consumer loans has also fallen similarly. Demand for commercial real estate loans is currently at record lows.
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