According to a survey published by the Federal Reserve, U.S. banks have reported a surge in demand for corporate loans during the fourth quarter of 2024. Notably, the net percentage of banks noting an uptick in demand for industrial and commercial loans among medium and large enterprises stood at 9.4%, while for small enterprises, it was 3.4%. Both figures turned positive for the first time in two years. Nevertheless, banks simultaneously tightened their lending criteria for these loan types. The Fed postulates that this may be attributed to last year's 100-basis-point interest rate cut, which spurred corporate borrowing, albeit with minimal impact on demand for other loan categories. Furthermore, bankers indicated a tightening of lending standards for commercial real estate loans, though overall demand remained stable. In contrast, demand for household real estate loans, credit cards, and other consumer loans weakened, while demand for auto loans remained relatively unchanged. These survey findings precede the Fed's decision last week to maintain interest rates at their current levels.