Bank Lending Survey
The Bank Lending Survey provides insights into banks’ lending standards, credit demand, and financing conditions.
Meaning in Practice
Conducted by central banks, the survey gathers data from commercial banks on loan approval criteria and borrower demand. It covers corporate and household lending segments. The results help assess credit supply dynamics.
Why It Matters
The survey reveals whether credit conditions are tightening or easing. It helps policymakers evaluate the effectiveness of monetary policy transmission. Shifts in lending standards can signal future economic trends.
Market Impact
Tighter lending standards may weigh on growth-sensitive assets. Easing conditions can boost equities and support expansion expectations. Fixed income markets respond to implications for credit growth and policy direction.
Example
If banks report increased demand for mortgages and relaxed approval standards, the survey indicates supportive credit conditions.