Save US Net Percentage of Domestic Banks Tightening Standards for consumer loans
Fed surveys about 70 national banks and 20 foreign banks in United Staes in order to better understand the demand changes in consumer lending activities. The survey includes updates of borrowing requirements and conditions, supply of lending and changes in demand.
Consumer loans include installment loan, credit card, mortgage, and car loan. Fed conducts the survey every three months. There are 5 types of feedback: tightened considerably, tightened somewhat, remained basically unchanged, eased somewhat, and eased considerably; or substantially stronger, moderately stronger, about the same, moderately weaker, and substantially weaker.
Net percentage of domestic banks tightening standards for consumer loans = percentage of banks tightening - percentage of banks easing
Percentage of net demand of consumer loan = percentage of increasing demand - percentage of decreasing demand
When the lending activities are easing and demand is growing, it isa good time to invest the stock market. But when demand is reducing, the economy might be somewhat weak. Investing stock market might not be the best choice.
Critical point is zero.
US Banks Tightening Excl. Credit Card & Auto Loans2021 Q2-17.50 %
US Domestic Demand Excl. Credit Card & Auto Loans2021 Q2-4.70 %