Briefing
How Bank Lending Standards Shape the U.S. Macroeconomy
Abstract: Changes in lending standards affect GDP performance, with changes to business lending standards having a greater impact on overall U.S. economic growth than changes to household lending standards. The tightening of business lending standards is associated with a significant and persistent drop in real GDP growth. The magnitude of the effect depends on economic conditions, as it is significantly stronger when GDP is below its long-run trend, interest rates are away from their effective lower bound or economic uncertainty is elevated. A tightening of bank lending standards has a larger, more immediate negative impact on GDP growth than the positive effect of an easing in lending standards.
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https://www.richmondfed.org/publications/research/economic_brief/2026/eb_26-31
Description: Briefing
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Bibliographic Information
Provider: Federal Reserve Bank of Richmond
Part of Series: Richmond Fed Economic Brief
Publication Date: 2026-09-23
Volume: 26
Issue: 31