CONSUMER LENDING THROUGH THE PANDEMIC AND THE RECOVERY

Introduction The U.S. economy and households entered the recession that started in 2020 in a strong 

position. Before the pandemic, the unemployment rate was at the lowest level since the 

1970s and household wealth was at its highest level since data were first collected in 1945. 

Household balance sheets had been improving for years before the pandemic and debt 

burdens were historically low. This strong starting position helped households weather the 

income disruptions that occurred due to the pandemic.

Consumer Sector 

Overview

The pandemic quickly pushed the economy into a recession and more than 20 million 

people lost their jobs in two months. Many businesses shut down as state and local 

governments issued stay-at-home orders and directed businesses to close. Many people 

remained at home to slow the spread of COVID-19, resulting in a sharp slowdown in 

economic activity. The unemployment rate rose to 14.7 percent in April 2020, well above 

the previous peak unemployment rate of 10.8 percent in 1982 (Chart 1). In May 2020, an 

additional 31.5 percent of the labor force could not work because of closures or lost business 

related to the COVID-19 pandemic.1 Aggregate monthly personal income dipped $33 billion 

in March 2020 (almost 2 percent from February 2020, about four times the average monthly 

personal income change). The negative trends were short-lived, however, as businesses 

reopened quickly and fiscal support boosted income.

Government support programs bolstered income in the months following the start of the 

recession through the largest and fastest economic contraction on record (Chart 2). Direct 

transfers and enhanced unemployment insurance payments pushed monthly personal 

income to a record high in April 2020, about $150 billion higher than monthly personal 

income before the pandemic. In the context of the severe recession and substantial job loss, 

this record-setting personal income and its full-year increase in 2020 compared with 2019 

reflects the magnitude of the federal government’s pandemic-related support to the U.S. 

economy. Personal income spiked again in January 2021 and March 2021 when additional 

rounds of direct payments were made.

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Jan 2019 May 2019 Sep 2019 Jan 2020 May 2020 Sep 2020 Jan 2021 May 2021 Sep 2021

Previous U-6 Peak (Dec 2009)

Previous U-3 Peak (Nov 1982)

Unemployment Spiked at the Onset of the Pandemic

Source: Bureau of Labor Statistics (Haver Analytics).

Note: Data are monthly through December 2021. The U-3 unemployment measure is available from January 1948 to December 2021. 

The U-6 unemployment measure is available from January 1994 to December 2021. Shaded area indicates recession.

Share of Labor Force 

(Percent)

Official Unemployment Rate (U-3)

Unemployed + Marginally Attached + 

Part Time for Economic Reasons (U-6)

Unable to Work Due to COVID-19

Business Closure

Chart 1

1 In May 2020, the Bureau of Labor Statistics added questions to the Current Population Survey about how the 

coronavirus pandemic affected work, including the question “At any time in the LAST 4 WEEKS, were you unable 

to work because your employer closed or lost business due to the coronavirus pandemic?” The standard measure of 

unemployment (U-3) was 13.2 percent in May 2020.

FDIC QUARTERLY 31
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32 FDIC QUARTERLY

Personal Income Rose During the Pandemic From Government Support

Source: Bureau of Economic Analysis (Haver Analytics).

Note: Data are monthly through December 2021.

Monthly Dollar Amount

($ Trillions)

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Jan-2019 Jul-2019 Jan-2020 Jul-2020 Jan-2021 Jul-2021

Income Unemployment Insurance Economic Impact Payments

Chart 2

Extensive government support pushed aggregate personal income to record highs in the 

months following the onset of the 2020 recession and—coupled with reduced spending 

from pandemic-related business closures—led to a high household savings rate. Estimates 

place excess savings—savings on top of what would be predicted by the pre-pandemic 

trend in household savings—at about $2.5 trillion in early 2021. While household wealth 

dipped with the stock market in first quarter 2020, it reached new record highs in every 

quarter between second quarter 2020 and fourth quarter 2021 as the stock market recovered 

and housing prices rose. Household savings and wealth supported consumer debt payments 

throughout the recession and often allowed consumers to keep current on debt service 

payments despite challenging economic conditions.

Government Support Programs Expanded During the Pandemic

Several federal programs supported households through the pandemic. The Coronavirus Aid, Relief, and Economic 

Security (CARES) Act, passed in March 2020, provided direct economic impact payments for the majority of American 

households.a From the end of March through May 2020, the Internal Revenue Service made 159 million of these payments 

to qualifying individuals. The federal government also provided two more rounds of economic impact payments in early 

2021. Altogether, the Treasury issued almost $800 billion in transfer payments in about 15 months, much higher than the 

previous peak in transfer payments in the Great Recession.

The CARES Act also expanded unemployment insurance, both in terms of who was covered by unemployment insurance 

and the size of payments. Besides state unemployment insurance payments, the federal government paid $600 per 

week in federal unemployment insurance benefits.b The CARES Act also created two new unemployment insurance 

programs. The Pandemic Emergency Unemployment Compensation program extended unemployment insurance benefits 

to people whose standard state benefits had expired. And the Pandemic Unemployment Assistance program provided 

unemployment insurance payments to people who typically aren’t eligible for unemployment insurance, like gig workers, 

independent contractors, and the self-employed.

By October 2021, most federal monetary support programs had ended. Most economic impact payments were disbursed 

by summer 2021, and enhanced unemployment insurance programs ended in September 2021. The last major fiscal cash 

transfer program related to COVID-19 in effect at the end of 2021 was the expansion of the Child Tax Credit. The American 

Rescue Plan expanded the Child Tax Credit and changed a tax refund to disbursing half of the money as monthly payments.

a CARES Act economic impact payments were up to $1,200 per adult and $500 per child under 17 years old for individuals who made less than $99,000 per year and 

joint filers who made less than $198,000 per year.

b These additional payments were later reduced to $300 per week, but remained in effect through September 2021.
CONSUMER LENDING THROUGH THE PANDEMIC AND THE RECOVERY

FDIC QUARTERLY 33

The unprecedented government transfers, coupled with changes in consumer spending 

and saving behaviors, led to a change in consumer lending trends. Consumer loan volumes 

declined in 2020 and remained below pre-pandemic levels through third quarter 2021. And 

unlike in previous recessions, loan performance generally improved through the recession. 

Households used the government support partly to pay down debt and increase savings, 

both decreasing their reliance on consumer credit for spending and improving repayment 

rates on existing loans. The Census Bureau’s Household Pulse Survey provides further 

information about consumers’ use of the increased income from government transfers. 

The survey asked respondents how they used the economic impact payments they received. 

While only 11 percent of households used the first economic impact payment to “mostly pay 

down debt” in summer 2020, that figure increased to about 50 percent for the second and 

third payments, received in early 2021.2 Many households also saved part of their economic 

impact payments, which may have made them more able to pay debts in future months.

Overview of 

Consumer Lending 

at Banks

In aggregate, banks held $1.9 trillion in consumer loans in fourth quarter 2021 (Chart 3). 

Consumer loans are defined as loans to individuals that are not backed by real estate. The 

category includes credit card loans, auto loans, and other consumer loans. On average, 

consumer loans are not a large part of bank portfolios, just 7.9 percent of bank assets 

overall. Consumer loans are also a relatively small share of community bank portfolios, 

totaling $66 billion in fourth quarter 2021.3 However, for lenders that specialize in 

consumer lending, trends in the consumer landscape are of great importance.

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Credit Card Loans Comprise About Half of Consumer Loans;

Auto Loans and Other Consumer Loans Comprise the Rest

Source: FDIC.

Note: Data are quarterly through fourth quarter 2021.

Loans Outstanding

($ Trillions) Credit Card Loans Auto Loans Other Consumer Loans

Chart 3

Noncommunity banks are the main consumer lenders. While noncommunity banks 

represent 88 percent of total banking industry assets, they hold a disproportionally higher 

share of consumer loans: 97 percent of the industry total (Chart 4). Credit card loans are 

particularly concentrated in noncommunity banks. Noncommunity banks also hold a higher 

proportion of their assets as consumer loans. Consumer loans, on average, are 10.3 percent of 

assets at noncommunity banks and only 2.8 percent of assets at community banks (Table).4

2 The response options in the survey were “mostly spend it,” “mostly save it,” or “mostly use it to pay off debt.” See 

Phase 3 COVID-19 Household Pulse Survey for an example of the survey questionnaire.

3 Community banks are defined using the criteria in the FDIC 2012 Community Banking Study and FDIC 2020 Community 

Banking Study. The definition encompasses small banks and larger banks that focus on traditional lending and deposittaking activities. See https://www.fdic.gov/resources/community-banking/report/2012/2012-cbi-study-full.pdf and 

https://www.fdic.gov/resources/community-banking/report/2020/2020-cbi-study-full.pdf for more information. 

Noncommunity banks are all other banks.

4 The larger share of assets of consumer loans at noncommunity banks is partly driven by the credit card specialist 

banks, where consumer loans are 76.4 percent of assets. Excluding the 11 credit card specialist banks, consumer loans 

are 8.7 percent of assets at noncommunity banks.
2022   •   Volume 16  • Number 1

34 FDIC QUARTERLY

Banks implemented or expanded forbearance programs for their customers in spring and 

summer 2020, which helped to support loan performance. These forbearance programs 

for consumer loans were not mandated by the CARES Act, but bank supervisors released 

guidance in March 2020 encouraging banks to work prudently with customers affected by 

COVID-19 and stating that they view loan modification programs as positive actions that 

can mitigate adverse effects on borrowers during the pandemic.5 Supervisors clarified that 

borrowers who received forbearance should generally be considered current on their loans 

if they met the terms of the forbearance; this may have contributed to lower delinquency 

rates on consumer loans during 2020 and 2021.

Noncommunity Banks Hold a Disproportionately Larger Share of Consumer Loans 

Than Their Share of Total Banking Industry Assets

Source: FDIC.

Note: Data are as of fourth quarter 2021.

Share Held by Noncommunity Banks

(Percent)

88% 85%

97% 95%

100%

93%

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Assets Loans Total

Consumer

Loans

Auto Loans Credit Card

Loans

Other

Consumer

Loans

Chart 4

The outlook for overall consumer loan performance is strong. In aggregate, household 

balance sheets have remained relatively healthy through the recession, and labor 

markets improved even as federal support for households began to wane. Households 

have generally not taken on more consumer debt through the recession and recovery, 

and banks have generally tightened underwriting standards. However, if the pandemic 

worsens and businesses shut down again, households may lose income and have trouble 

repaying their debt. The next sections discuss the three types of consumer lending 

in detail.

5 See, for example, https://www.fdic.gov/news/press-releases/2020/pr20030b.pdf and https://www.fdic.gov/news/pressreleases/2020/pr20038a.pdf. 

Consumer Loans Are a Larger Share of Assets at Noncommunity Banks Than Community Banks

Loan Type Community Banks Noncommunity Banks

Consumer Loans 2.8% 10.3%

Credit Card Loans 0.1% 5.4%

Auto Loans 1.3% 2.6%

Other Consumer Loans 1.4% 2.2%

Source: FDIC.

Note: Data are average share of assets from first quarter 2011 through fourth quarter 2019.

Table
CONSUMER LENDING THROUGH THE PANDEMIC AND THE RECOVERY

FDIC QUARTERLY 35

Credit Cards The credit card market is dominated by a few large noncommunity banks. The ten largest 

credit card lenders—all noncommunity banks—held 88 percent of outstanding credit 

card loans in fourth quarter 2021, while community banks held less than 1 percent of 

outstanding credit card loans.

Credit card loan volumes declined during the pandemic (Chart 6). Aggregate credit card 

loan volume in first quarter 2021 was the lowest since 2017, down 19 percent from the 

pre-pandemic peak in fourth quarter 2019. In third and fourth quarters 2021, credit card 

loans grew year over year, but in fourth quarter 2021 loan balances remained down about 

7 percent compared with fourth quarter 2019.

Nonbank Lenders in the Consumer Lending Space

Nonbank lenders hold most consumer loans, primarily due to large holdings of federal student loans. The Federal Reserve 

Bank of New York publishes quarterly reports on consumer debt based on their Consumer Credit Panel database, which 

uses anonymous credit bureau data to study consumer debt. The quarterly report does not distinguish between bank 

and nonbank debt, but by combining their data with bank Consolidated Reports of Condition and Income (Call Report) 

data, we can estimate the shares of loans held by nonbanks. Nonbanks include credit unions, auto finance companies, 

fintech lenders, other private lenders, and the federal government.a Nonbank lenders held 57 percent of consumer loans 

outstanding as of fourth quarter 2021. However, excluding federally owned student loans, nonbank lenders hold only 

31 percent of consumer loans outstanding (Chart 5).b Nonbank lenders hold almost no credit card loans, but they hold the 

majority of auto loans and other consumer loans.c

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Total Consumer Loans Credit Card Loans Auto Loans Other Consumer Loans

Banks Hold the Majority of Credit Card Loans but Nonbanks Hold the Majority of

Auto and Other Consumer Loans

Sources: FDIC, Federal Reserve Bank of New York (Haver Analytics).

Note: Data are as of fourth quarter 2021.

Loans Outstanding

($ Trillions)

Bank

Nonbank

Bank Share of Loans: 43 percent

Bank Share Excluding 

Federal Student Loans: 69 percent

Chart 5

a Most consumer loans held by the federal government are U.S. Department of Education student loans.

b The Consumer Credit Panel does not separately identify federal student loans and private student loans. Data on outstanding federal student loans come from 

the National Student Loan Data System. See https://studentaid.gov/data-center/student/portfolio.

c Credit unions hold about 20 percent of outstanding auto loans. In this section, credit unions are considered nonbank lenders.
2022   •   Volume 16  • Number 1

36 FDIC QUARTERLY

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Mar-2019 Sep-2019 Mar-2020 Sep-2020 Mar-2021 Sep-2021

Credit Card Loan Balances Fell in 2020 and the First Half of 2021

Source: FDIC.

Note: Data are quarterly through fourth quarter 2021.

Loans Outstanding

($ Billions) Top Ten Banks Other Noncommunity Banks Community Banks

Chart 6

Aggregate credit card balances fell in 2020 because households changed their spending 

habits, often in ways that are not typical during recessions. Credit card balances rose 

during the previous two recessions. In the pandemic recession, households cut back on 

spending as lockdowns and business closures were implemented across the country, which 

lowered credit card balances. Households cut back more than average on services spending, 

particularly for those services that involve in-person interaction, such as restaurants, 

hotels, travel, and medical care. Goods spending recovered quickly after it fell in March and 

April 2020, but services spending recovered more slowly. These changes meant that overall 

spending did not surpass pre-pandemic levels until first quarter 2021. And the government 

transfer payments enabled many households to pay down existing credit card balances, 

which also reduced aggregate outstanding credit card loans.

Banks tightened lending standards in 2020, which also contributed to lower credit card 

loan balances. In second quarter 2020, on net, more than 70 percent of all banks tightened 

lending standards for credit card loans, according to the Federal Reserve’s Senior Loan 

Officer Opinion Survey (SLOOS). The survey covers about 80 of the largest U.S. banks, which 

is especially useful for credit cards because most credit card loans come from large banks. 

Banks tightened lending standards again in third quarter 2020, and then began loosening 

standards as the economy recovered. On net, banks loosened underwriting standards for 

credit cards in every quarter of 2021, but they remained relatively tight. In the first quarter 

2021 SLOOS report, banks were asked to compare their current underwriting standards to 

pre-pandemic levels. The underwriting standards for credit card loans at a meaningful 

share majority of banks were still tighter than before the pandemic.

Credit card loan performance generally improved as consumers cut back on credit card 

spending and paid down credit card balances with federal transfers. The share of credit 

card loans that were noncurrent—90 days or more past due but still accruing interest—and 

loans in nonaccrual status decreased 22 percent from fourth quarter 2019 to fourth quarter 

2020 and decreased another 21 percent by fourth quarter 2021 (Chart 7). And the net chargeoff rate for credit card loans for the banking industry was near its historic low in fourth 

quarter 2021. In contrast, the share of credit card loans that were noncurrent rose from 

fourth quarter 2007, at the start of the Great Recession, through first quarter 2010, after the 

end of the Great Recession.
CONSUMER LENDING THROUGH THE PANDEMIC AND THE RECOVERY

FDIC QUARTERLY 37

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The Noncurrent Rate on Credit Card Loans Was Lower at Community Banks 

Than at Noncommunity Banks

Source: FDIC.

Note: Noncurrent loans are loans that are 90 days or more delinquent or in nonaccrual status. Data are quarterly through fourth quarter 2021.

Shaded areas indicate recession.

Share of Loans That Are Noncurrent

(Percent)

Noncommunity Banks Community Banks

Chart 7

Auto Loans The auto lending market is split between banks, credit unions, and other auto finance 

companies. Banks and captive finance companies each hold about 30 percent of the auto 

loan market, credit unions hold about 18 percent, and other lenders hold the remaining 

amount, according to Experian.

6 In the banking industry, a few banks hold the majority 

of outstanding auto loans, but most banks (87.5 percent) have some auto loans on their 

balance sheets. The ten largest bank auto lenders hold almost 75 percent of outstanding 

bank auto loans (Chart 8).

Auto lending by banks and nonbanks declined during the start of the pandemic but 

recovered quickly. Auto lending declined for a few months in first and second quarter 2020 

as many dealerships closed in-person sales facilities. However, auto loan volumes recovered 

more quickly than in previous recessions because of higher demand and low interest rates. A 

factor contributing to increased demand for auto loans may have been people who previously 

did not own a car but felt uncomfortable using public transportation during a pandemic.

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The Ten Largest Auto Lending Banks Held Three-Quarters of Auto Loans 

in the Banking Sector

Source: FDIC.

Note: Data are quarterly through fourth quarter 2021.

Loans Outstanding

($ Billions) Top Ten Banks Other Noncommunity Banks Community Banks

Chart 8

6 A captive finance company is a wholly owned subsidiary of an auto manufacturer that provides loans for purchases of 

their own vehicles. 
2022   •   Volume 16  • Number 1

38 FDIC QUARTERLY

Auto loan balances in the banking industry fell slightly from $487 billion in first quarter 

2020 to $486 billion in second quarter 2020, but exceeded pre-pandemic levels by third 

quarter 2020. In fourth quarter 2021, auto loan balances were about 11 percent above their 

pre-pandemic level. In past recessions, auto loan volumes recovered much more slowly. 

While data on auto loans in the banking industry are not available for previous recessions, 

data on auto sales may serve as a proxy for bank auto-lending patterns. After the Great 

Recession, the number of cars sold did not surpass pre-recession levels until 2014, almost 

seven years after the previous peak.7

During the recession, banks tightened lending standards for auto loans, especially for 

subprime borrowers. In second quarter 2020, about half of all banks tightened lending 

standards for auto loans, according to the SLOOS. Banks loosened underwriting standards 

over the subsequent quarters, especially for prime borrowers. In a special question in first 

quarter 2021, banks were asked to compare their underwriting standards to pre-pandemic 

underwriting standards. Responses showed that the standards at more than a quarter of 

banks were tighter than before the pandemic for subprime and near-prime borrowers, 

and the standards at 11 percent of banks were tighter than before the pandemic for prime 

borrowers. Tighter standards tend to improve the quality of loan portfolios and decrease 

delinquencies.

Auto loan performance improved in 2020 and 2021. The share of auto loans at banks that 

were noncurrent increased in the first half of 2020 before improving through 2021 (Chart 9). 

The share of bank auto loans in early delinquency—loans that were 30 to 89 days past due—

fell almost 50 percent from first quarter 2020 to first quarter 2021. Early delinquencies 

rose in 2021 but remained well below pre-pandemic levels in fourth quarter 2021. Unlike 

pre-pandemic trends, auto loan performance was somewhat better at community banks 

than noncommunity banks.8 While auto loan data were not reported separately before 

2011, loan performance data for auto and other consumer loans combined are available. 

Loan performance for these non-credit-card consumer loans began deteriorating in fourth 

quarter 2007 at the start of the Great Recession and worsened through first quarter 2010, 

after the end of the recession.

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Auto Loan Performance Was Better at Community Banks Than at 

Noncommunity Banks in 2020 and 2021

Source: FDIC.

Note: Noncurrent loans are loans that are 90 days or more delinquent or in nonaccrual status. Before 2011, data for auto loans are not separately 

available, so the dashed lines show noncurrent rates for auto and other consumer loans combined (non-credit-card loans). Data are quarterly 

through fourth quarter 2021. Shaded areas indicate recession.

Share of Loans That Are Noncurrent

(Percent) Noncommunity Bank Auto Loans

Community Bank Auto Loans

Noncommunity Bank

Non-Credit-Card Consumer Loans

Community Bank

Non-Credit-Card Consumer Loans

Chart 9

7 Bureau of Economic Analysis.

8 The share of loans that were noncurrent increased at community banks in third and fourth quarter 2021 consistent with 

the seasonal nature of auto loan noncurrent rates. 
CONSUMER LENDING THROUGH THE PANDEMIC AND THE RECOVERY

FDIC QUARTERLY 39

Other Consumer Loans Most banks hold other consumer loans on their balance sheets. Other consumer loans 

include revolving, single payment, or installment loans made to an individual that are not 

credit card or auto loans. This loan category is mostly composed of unsecured personal 

loans and private student loans. The ten largest bank lenders for other consumer loans 

hold about half of other consumer loans in the banking system, while community banks 

hold about 9 percent of the other consumer loans in the banking system. Most banks 

(96 percent) hold some other consumer loans on their balance sheets.

Balances of other consumer loans were flat after the start of the pandemic recession but 

began growing again in third quarter 2020 (Chart 10). Balances of other consumer loans 

continued to rise through the end of 2020 and in 2021. In fourth quarter 2021, the balance of 

other consumer loans was $473 billion, 14.8 percent higher than the pre-pandemic level.

Just as for auto and credit card loans, banks tightened lending standards for other 

consumer loans in second and third quarter 2020. On net, 61 percent of banks tightened 

lending standards in second quarter 2020, and 16 percent tightened in third quarter 2020, 

according to the SLOOS. Starting in fourth quarter 2020, banks loosened standards on other 

consumer loans in every quarter thereafter through fourth quarter 2021. Although banks 

have loosened underwriting standards on other consumer loans, the standards are still 

relatively tight. In the July 2021 SLOOS report, banks reported that underwriting standards 

for other consumer loans were somewhat tighter compared with their historical range from 

2005 to the present.

Other Consumer Loan Balances Continued to Grow in 2020 and 2021

Source: FDIC.

Note: Data are quarterly through fourth quarter 2021.

Loans Outstanding

($ Billions) Top Ten Banks Other Noncommunity Banks Community Banks

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Mar-2019 Sep-2019 Mar-2020 Sep-2020 Mar-2021 Sep-2021

Chart 10

Loan performance for other consumer loans improved throughout the pandemic.

Forbearance programs and changing consumer spending and savings behavior may

have kept delinquencies low. The other consumer loan noncurrent rate fell 20 percent

between the first and second quarter of 2020 but followed its typical seasonal pattern of

rising through the end of the year (Chart 11).9 The noncurrent rate improved further in 2021, 

and in fourth quarter 2021 the noncurrent rate was still down 22 percent from the fourth 

quarter 2019 level. In contrast, other non-credit-card consumer loan performance worsened 

during the last recession. Before 2011, auto loans were included in this category, so direct 

comparisons of loan performance during the Great Recession are not possible, but the share 

of non-credit-card consumer loans that were noncurrent began rising in fourth quarter 

2007 at the start of the Great Recession. The noncurrent rate for this loan category 

continued to rise through fourth quarter 2011, after the end of the Great Recession.

9 The noncurrent rate for combined bank and nonbank other consumer loans spiked down in second quarter 2020 

because of federally owned student loans. See the inset box on page 35 for more details on federal student loans.
2022   •   Volume 16  • Number 1

40 FDIC QUARTERLY

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Other Consumer Loan Performance Improved at Community and

Noncommunity Banks in 2020 and 2021

Source: FDIC.

Note: Noncurrent loans are loans that are 90 days or more delinquent or in nonaccrual status. Before 2011, data for other consumer loans are not 

separately available, so the dashed lines show noncurrent rates for auto and other consumer loans combined (non-credit-card loans). Data are 

quarterly through fourth quarter 2021. Shaded areas indicate recession.

Share of Loans That Are Noncurrent

(Percent) Noncommunity Bank Other Consumer Loans

Community Bank Other Consumer Loans Noncommunity Bank

Non-Credit-Card Consumer Loans

Community Bank 

Non-Credit-Card Consumer Loans

Chart 11

Conclusion In contrast with trends in previous recessions, consumer lending continued during the 

pandemic and consumer loan performance remained strong, helped by government 

programs that supported individual incomes and forbearance programs. The economic 

recovery helped support consumer financial conditions even as these programs ended. 

In aggregate, household balance sheets are healthy and labor markets are strong. Despite 

record job losses, households have generally not taken on more consumer debt through the 

recession and recovery. Furthermore, banks tightened lending standards in the uncertain 

economic environment. While the outlook for consumer loan performance is strong, it 

remains dependent on pandemic conditions. If the pandemic worsens and causes more 

business shutdowns and reduced economic activity, household income may decline and 

consumer loan performance may deteriorate.

 Author:

Kathryn Fritzdixon

Senior Financial Economist

Division of Insurance and Research