Net Percentage of Other Domestic Banks Tightening Loan Covenants for Large and Middle-Market Firms
SUBLPDCILTLOTHNQ • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
7.50
Year-over-Year Change
15.38%
Date Range
4/1/1990 - 7/1/2025
Summary
Tracks the percentage of domestic banks tightening loan covenants for large and middle-market firms. Provides critical insight into credit market conditions and lending standards.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
This indicator measures banks' willingness to impose stricter lending terms for corporate borrowers. It reflects overall credit market sentiment and potential economic constraints.
Methodology
Calculated through quarterly bank lending survey of domestic financial institutions.
Historical Context
Used by policymakers to assess credit market health and potential economic constraints.
Key Facts
- Indicates tightening or loosening of bank lending standards
- Quarterly measurement of bank lending practices
- Reflects potential economic pressure on businesses
FAQs
Q: What do loan covenant changes indicate?
A: Changes reflect banks' risk perception and overall economic conditions. Tightening suggests increased caution in lending.
Q: How often is this data updated?
A: Typically updated quarterly through Federal Reserve bank lending surveys.
Q: Why do banks tighten loan covenants?
A: Banks tighten covenants during economic uncertainty to manage potential credit risks and protect their investments.
Q: How do loan covenant changes impact businesses?
A: Tighter covenants can make borrowing more difficult and expensive for companies, potentially slowing economic growth.
Q: What makes this indicator important?
A: It provides early signals of potential credit market stress and economic challenges.
Related Trends
Number of Other Domestic Banks That Tightened and Reported That Less Favorable Economic Outlook Was Not an Important Reason
SUBLPDCIRTONOTHNQ
Net Percentage of Other Domestic Banks Tightening Standards for Commercial Real Estate Loans Secured by Nonfarm Nonresidential Structures
SUBLPDRCSNOTHNQ
Number of Domestic Banks That Eased and Reported That Reduced Concerns About the Effects of Legislative Changes, Supervisory Actions, or Changes in Accounting Standards Was a Somewhat Important Reason
SUBLPDCIREESNQ
Number of Large Domestic Banks That Reported Weaker Commercial and Industrial Loan Demand and Reported That Decreased Customer Inventory Financing Needs Was a Somewhat Important Reason
SUBLPDCIRWISLGNQ
Number of Large Domestic Banks That Reported Weaker Commercial and Industrial Loan Demand and Reported That Decreased Customer Inventory Financing Needs Was a Very Important Reason
SUBLPDCIRWIVLGNQ
Number of Large Domestic Banks That Eased and Reported That More Aggressive Competition From Other Banks or Nonbank Lenders Was Not an Important Reason
SUBLPDCIREANLGNQ
Citation
U.S. Federal Reserve, Net Percentage of Other Domestic Banks Tightening Loan Covenants (SUBLPDCILTLOTHNQ), retrieved from FRED.