US banks tighten lending conditions in first quarter

The Fed reported that banks in the country tightened credit conditions for companies in the first quarter of this year. The Fed released the "Senior Credit Officer Opinion Survey" report regarding banks' lending practices. The report, prepared with responses from 65 domestic banks in the US and 19 branches of foreign banks in the country, indicated that while banks tightened credit conditions for companies in the first quarter of the year, demand for loans was weak. The report reported that the rate of banks tightening credit conditions for medium and large-sized businesses increased to 46 percent. This rate was recorded as 44.8 percent in the last quarter of last year. Banks in the US began tightening access to credit as of last year, largely as a result of high borrowing costs caused by the Fed's rapid interest rate hikes. The rate of banks tightening credit standards increased at the end of last year. The Fed, which started raising interest rates last year in the face of high inflation in the US, made its 10th interest rate increase since March of last year at its last meeting, raising the policy rate to the range of 5-5.25 percent, the highest level in 16 years.