Over the fourth quarter, significant net shares of banks reported having tightened standards on C&I loans to firms of all sizes.3 Banks also reported having tightened all queried terms on C&I loans to firms of all sizes over the fourth quarter.4 Tightening was most widely reported for premiums charged on riskier loans, spreads of loan rates over the cost of funds, and costs of credit lines. In addition, significant net shares of banks reported having tightened loan covenants and collateralization requirements to firms of all sizes. Moderate net shares of banks reported having tightened the maximum size of credit lines to firms of all sizes. Tightening of the maximum maturity of loans or credit lines was reported by a significant net share of banks for large and middle-market firms, while a moderate net share reported this term for small firms.5 Similarly, a significant net share of foreign banks reported having tightened standards for C&I loans over the fourth quarter.
