🟦 U.S. banks are imposing stricter lending standards:

In Q1 2025, a net 19% of banks tightened their lending criteria for large and medium-sized companies, marking the highest percentage since Q3 2023. Simultaneously, a net 16% of banks applied more stringent standards for small businesses, the largest share since Q1 2024. Additionally, the gap between banks noting weaker demand for loans from large firms and those seeing stronger demand reached its widest point since Q3 2024.

For small businesses, this gap was the most significant since Q1 2024. A decline in credit demand is likely to impede future economic expansion.

us-banks-lending-standards.jpe . . .