Number of Domestic Banks That Tightened and Reported That Reduced Tolerance for Risk Was a Somewhat Important Reason
SUBLPDCIRTRSNQ • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
6.00
Year-over-Year Change
-60.00%
Date Range
4/1/1995 - 7/1/2025
Summary
Measures the number of domestic banks tightening lending standards due to reduced risk tolerance. Provides critical insight into banking sector risk perception.
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
Tracks banks reporting reduced risk tolerance as a reason for tightening lending practices. Indicates overall financial sector caution.
Methodology
Collected through Federal Reserve quarterly bank lending practice surveys.
Historical Context
Used by economists to assess financial sector risk management strategies.
Key Facts
- Indicates banking sector risk perception
- Reflects potential economic uncertainty
- Important predictor of credit market conditions
FAQs
Q: What causes banks to reduce risk tolerance?
A: Economic uncertainty, potential recession risks, or increased default probabilities can trigger more conservative lending.
Q: How frequently is this data collected?
A: Typically gathered through quarterly Federal Reserve bank lending surveys.
Q: What does reduced risk tolerance mean?
A: Banks become more selective in lending, imposing stricter credit requirements and potentially reducing loan availability.
Q: How does this impact the broader economy?
A: Can signal potential credit market contraction and reduced economic growth potential.
Q: What other factors influence this metric?
A: Monetary policy, economic indicators, and overall financial sector health play significant roles.
Related Trends
Net Percentage of Large Domestic Banks Tightening Standards for Government Mortgage Loans
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Number of Foreign Banks That Reported Weaker Commercial and Industrial Loan Demand and Reported That Increased Customer Internally Generated Funds Was Not an Important Reason
SUBLPFCIRWGNNQ
Number of Other Domestic Banks That Reported Stronger Commercial and Industrial Loan Demand and Reported That Decreased Customer Internally Generated Funds Was Not an Important Reason
SUBLPDCIRSGNOTHNQ
Number of Large Domestic Banks That Tightened and Reported That Deterioration in Current or Expected Capital Position Was a Very Important Reason
SUBLPDCIRTCVLGNQ
Number of Other Domestic Banks That Reported Weaker Commercial and Industrial Loan Demand and Reported That Decreased Customer Investment in Plant or Equipment Was Not an Important Reason
SUBLPDCIRWENOTHNQ
Net Percentage of Large Domestic Banks Increasing the Minimum Required Down Payment on Consumer Loans Excluding Credit Card and Auto Loans
SUBLPDCLXTDLGNQ
Citation
U.S. Federal Reserve, Number of Domestic Banks That Tightened and Reported That Reduced Tolerance for Risk Was a Somewhat Important Reason (SUBLPDCIRTRSNQ), retrieved from FRED.