More evidence of a US credit crunch

From the Fed’s own Beige Book this time.

• New York Fed: “Conditions in the broad finance sector deteriorated sharply, coinciding with recent stress in the banking sector. Regional banks continued to report widespread declines in loan demand, ongoing credit tightening, and modestly rising mortgage delinquency rates. Credit standards tightened noticeably for all loan types, and loan spreads continued to narrow. Deposit rates moved higher. Finally, delinquency rates edged up on residential and commercial mortgages…. Amid heightened uncertainty, most businesses do not expect economic conditions to improve in the coming months.”
• Philadelphia Fed: “Banks reported tighter lending standards. Expectations were subdued as sentiment remained cautious.”
• Cleveland Fed: “Economic activity was generally flat in the Fourth District and developments in the banking sector appeared to have very little impact on either recent economic activity or credit availability. One dealer hoped that more manufacturer incentives would increase demand, but he cautioned that higher credit standards had become an additional headwind for potential buyers”
• St Louis Fed: “Banking contacts reported slowing loan growth and a decline in deposits, but expressed confidence in their overall position.”
• Kansas City Fed: “After tightening credit standards over the past several weeks, many contacts reported expectations for further tightening or more strict pricing related to credit risks. Loan demand also weakened modestly in the past month, driven by increased borrowing costs and economic uncertainty. “
• Dallas Fed: “Credit standards and terms tightened sharply, and marked increases in loan pricing were noted. Banking outlooks continued to deteriorate, with contacts expecting a contraction in loan demand and business activity and an increase in nonperforming loans over the next six months… Outlooks were largely negative, and contacts voiced concern about weakening demand, a potential recession, and the spillover effects of the recent bank failures on the broader economy.”

Meanwhile, the latest from the excellent Steven Blitz at TSLombard explains the plumbing of the crunch.