Credit Conditions Survey
A Credit Conditions Survey assesses lending standards and credit demand across the financial system.
Meaning in Practice
The survey collects responses from financial institutions regarding changes in credit standards, loan demand, and risk perceptions. It provides qualitative insight into lending behavior. Results are typically published quarterly by central banks.
Why It Matters
Changes in credit conditions influence investment, consumption, and overall economic activity. Tighter standards may signal financial stress or rising risk aversion. Policymakers monitor surveys to gauge financial transmission mechanisms.
Market Impact
Tightening credit conditions can pressure equities and reduce growth expectations. Easing standards may support risk assets and economic outlook. Bond markets react to implications for monetary policy and lending growth.
Example
If banks report stricter loan approval criteria, the survey indicates tightening credit conditions.