The net share of banks reporting tighter standards reached 9% for corporate loans and 14% for consumer credit. Housing loan standards were broadly unchanged. These indicators measure banks' responses, not a percentage change in lending volumes.
Banks cited heightened risk perceptions and lower risk tolerance. They expect further tightening in the fourth quarter; these are expectations rather than observed outcomes.
Meanwhile, September loan stocks continued to grow year on year, by 4.2% for firms and 3.1% for households. Growth in outstanding loans can therefore coexist with more restrictive conditions for new borrowing.