US banks tightened credit conditions for small businesses, commercial real estate and borrowers with weak creditworthiness during the third quarter, according to the Federal Reserve’s latest survey.
The banks cite increased economic uncertainty and deteriorating industry outlooks.
At the same time, demand for real estate loans weakened. Higher interest rates are increasing pressure on households and indebted companies.
Nearly 20 percent of US families were behind on loan payments at the end of 2025, compared with around 12 percent in 2022.
