Net Percentage of Domestic Banks Increasing Spreads of Loan Rates Over Banks' Cost of Funds to Small Firms
DRISCFS • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
-3.40
Year-over-Year Change
-126.77%
Date Range
4/1/1990 - 7/1/2025
Summary
Tracks changes in bank lending spreads for small firms, indicating credit market conditions and bank lending strategies. Provides insight into small business financing accessibility.
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
Measures the net percentage of domestic banks adjusting loan rate spreads relative to their funding costs. Reflects banking sector's risk assessment and lending environment.
Methodology
Surveyed from domestic banks, calculating net percentage of institutions changing loan spreads.
Historical Context
Used by policymakers to assess small business credit market conditions and banking sector health.
Key Facts
- Indicates bank lending risk perception
- Reflects small business financing conditions
- Important economic health indicator
FAQs
Q: What does this metric tell us about small business lending?
A: It shows how banks are adjusting loan rates relative to their funding costs for small firms. Indicates lending market tightness or expansion.
Q: How often is this data updated?
A: Typically updated quarterly as part of bank lending surveys. Provides current snapshot of credit market conditions.
Q: Why do banks change loan spreads?
A: Banks adjust spreads based on perceived risk, economic conditions, and funding costs. Reflects their lending strategy.
Q: How do loan spreads impact small businesses?
A: Wider spreads mean higher borrowing costs, potentially limiting access to credit for small firms.
Q: Can this metric predict economic trends?
A: It can be an early indicator of economic conditions and banking sector sentiment towards small business lending.
Related Trends
Number of Large Domestic Banks That Reported Weaker Commercial and Industrial Loan Demand and Reported That Decreased Customer Accounts Receivable Financing Needs Was a Very Important Reason
SUBLPDCIRWAVLGNQ
Net Percentage of Other Domestic Banks Tightening Policies on Auto Loans to Customers That Do Not Meet Credit Scoring Thresholds
SUBLPDCLATEOTHNQ
Number of Other Domestic Banks That Reported Stronger Commercial and Industrial Loan Demand and Reported That Increased Customer Investment in Plant or Equipment Was Not an Important Reason
SUBLPDCIRSENOTHNQ
Number of Other Domestic Banks That Eased and Reported That More Favorable Economic Outlook Was a Very Important Reason
SUBLPDCIREOVOTHNQ
Number of Foreign Banks That Eased and Reported That More Favorable Economic Outlook Was a Somewhat Important Reason
SUBLPFCIREOSNQ
Number of Foreign Banks That Tightened and Reported That Less Aggressive Competition From Other Banks or Nonbank Lenders Was a Somewhat Important Reason
SUBLPFCIRTASNQ
Citation
U.S. Federal Reserve, Net Percentage of Domestic Banks Increasing Spreads of Loan Rates Over Banks' Cost of Funds to Small Firms (DRISCFS), retrieved from FRED.