Net Percentage of Domestic Banks Tightening Loan Covenants for Small Firms
SUBLPDCISTLNQ • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
6.70
Year-over-Year Change
3.08%
Date Range
4/1/1990 - 7/1/2025
Summary
Tracks changes in loan covenant standards for small firms, indicating credit market conditions and bank lending appetite. Provides critical 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
This metric measures banks' willingness to impose stricter lending terms for small businesses. It reflects overall economic health and credit market sentiment.
Methodology
Surveyed banks report changes in loan covenant standards for small firms quarterly.
Historical Context
Federal Reserve uses this data to assess credit market conditions and potential economic constraints.
Key Facts
- Negative values indicate loosening lending standards
- Quarterly survey-based metric
- Critical indicator of small business financing
FAQs
Q: What does a positive percentage mean in this metric?
A: A positive percentage indicates banks are tightening loan covenants for small firms, suggesting more restrictive lending conditions.
Q: How often is this data updated?
A: The metric is typically updated quarterly as part of the Federal Reserve's bank lending survey.
Q: Why do loan covenants matter for small businesses?
A: Tighter covenants can make borrowing more difficult and expensive, potentially constraining small business growth.
Q: How does this metric relate to economic health?
A: It serves as an early indicator of credit market conditions and potential economic constraints.
Q: Can this metric predict economic downturns?
A: Consistently tightening standards can signal potential economic slowdown or increased financial risk.
Related Trends
Number of Large Domestic Banks That Reported Stronger Commercial and Industrial Loan Demand and Reported That Increased Customer Inventory Financing Needs Was a Very Important Reason
SUBLPDCIRSIVLGNQ
Number of Other 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
SUBLPDCIREESOTHNQ
Number of Large Domestic Banks That Reported Stronger Commercial and Industrial Loan Demand and Reported That Increased Customer Investment in Plant or Equipment Was a Very Important Reason
SUBLPDCIRSEVLGNQ
Number of Foreign Banks That Reported Weaker Commercial and Industrial Loan Demand and Reported That Decreased Customer Merger or Acquisition Financing Needs Was a Very Important Reason
SUBLPFCIRWMVNQ
Number of Foreign Banks That Reported Stronger Commercial and Industrial Loan Demand and Reported That Increased Customer Merger or Acquisition Financing Needs Was Not an Important Reason
SUBLPFCIRSMNNQ
Net Percentage of Other Domestic Banks Tightening Standards for Consumer Loans Excluding Credit Card and Auto Loans
SUBLPDCLXSOTHNQ
Citation
U.S. Federal Reserve, Net Percentage of Domestic Banks Tightening Loan Covenants for Small Firms (SUBLPDCISTLNQ), retrieved from FRED.