On June 6, 2025 the Federal Reserve released a FEDS Note outlining a new method to estimate quarterly levels of bank lending standards. The model, based on a mixed‑data sampling (MIDAS) regression, uses the Senior Loan Officer Opinion Survey on Bank Lending Practices (SLOOS) to combine annual reports of standards levels with quarterly changes. Compared with a simple additive approach, the MIDAS model produces more accurate estimates, especially during periods of stress such as the 2020 pandemic and the 2023 bank‑stress episode. According to the latest estimates, the overall lending standards index was significantly tight at the end of Q1 2025, and tighter levels are associated with lower loan growth for businesses and households. The Fed notes that the new quarterly indicator can help policymakers assess credit conditions.
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https://www.federalreserve.gov/econres/notes/feds-notes/estimated-quarterly-levels-of-bank-lending-standards-and-credit-availability-20250606.html
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