Net Percentage of Large Domestic Banks Tightening Loan Covenants for Large and Middle-Market Firms
SUBLPDCILTLLGNQ • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
-4.50
Year-over-Year Change
-176.27%
Date Range
4/1/1990 - 7/1/2025
Summary
Measures changes in loan covenant strictness for large and middle-market firms by domestic banks. Provides crucial insights into lending standards and credit market dynamics.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
This indicator tracks banks' modifications to loan covenant terms for corporate borrowers. It reflects institutional lending risk management strategies.
Methodology
Large domestic banks report net percentage changes in loan covenant requirements quarterly.
Historical Context
Federal Reserve monitors this metric to assess credit market conditions and potential economic constraints.
Key Facts
- Reflects bank lending risk assessment
- Quarterly survey-based indicator
- Measures lending standard changes
FAQs
Q: What are loan covenants?
A: Loan covenants are contractual terms that restrict borrower actions to protect the lender's interests.
Q: How do tightened loan covenants affect businesses?
A: Stricter covenants can limit corporate financial flexibility and increase borrowing costs.
Q: Why do banks tighten loan covenants?
A: Banks increase covenant strictness during economic uncertainty to manage potential financial risks.
Q: How frequently is this data updated?
A: The survey is conducted quarterly by the Federal Reserve.
Q: What does this metric indicate about the economy?
A: It serves as an early warning sign of potential credit market stress and economic challenges.
Related Trends
Number of Other Domestic Banks That Eased and Reported That More Aggressive Competition From Other Banks or Nonbank Lenders Was Not an Important Reason
SUBLPDCIREANOTHNQ
Number of Large Domestic Banks That Reported Weaker Commercial and Industrial Loan Demand and Reported That Decreased Customer Accounts Receivable Financing Needs Was Not an Important Reason
SUBLPDCIRWANLGNQ
Number of Foreign Banks That Reported Stronger Commercial and Industrial Loan Demand and Reported That Increased Customer Accounts Receivable Financing Needs Was a Very Important Reason
SUBLPFCIRSAVNQ
Number of Domestic Banks That Tightened and Reported That Less Aggressive Competition From Other Banks or Nonbank Lenders Was a Very Important Reason
SUBLPDCIRTAVNQ
Number of Large Domestic Banks That Eased and Reported That Increased Tolerance for Risk Was a Very Important Reason
SUBLPDCIRERVLGNQ
Number of Foreign Banks That Reported Weaker Commercial and Industrial Loan Demand and Reported That Decreased Customer Investment in Plant or Equipment Was a Very Important Reason
SUBLPFCIRWEVNQ
Citation
U.S. Federal Reserve, Net Percentage of Large Domestic Banks Tightening Loan Covenants (SUBLPDCILTLLGNQ), retrieved from FRED.