1. Over the past three months, how have your bank's credit standards for approving applications for C&I loans or credit lines--other than those to be used to finance mergers and acquisitions--to large and middle-market firms and to small firms changed? (If your bank defines firm size differently from the categories suggested below, please use your definitions and indicate what they are.)
a. Standards for large and middle-market firms (annual sales of $50 million or more):
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Tightened considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Tightened somewhat | 3 | 5.3 | 1 | 2.7 | 2 | 10.0 |
Remained basically unchanged | 51 | 89.5 | 34 | 91.9 | 17 | 85.0 |
Eased somewhat | 3 | 5.3 | 2 | 5.4 | 1 | 5.0 |
Eased considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 57 | 100.0 | 37 | 100.0 | 20 | 100.0 |
b. Standards for small firms (annual sales of less than $50 million):
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Tightened considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Tightened somewhat | 4 | 7.1 | 2 | 5.6 | 2 | 10.0 |
Remained basically unchanged | 51 | 91.1 | 34 | 94.4 | 17 | 85.0 |
Eased somewhat | 1 | 1.8 | 0 | 0.0 | 1 | 5.0 |
Eased considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 56 | 100.0 | 36 | 100.0 | 20 | 100.0 |
2. For applications for C&I loans or credit lines--other than those to be used to finance mergers and acquisitions--from large and middle-market firms and from small firms that your bank currently is willing to approve, how have the terms of those loans changed over the past three months? (Please assign each term a number between 1 and 5 using the following scale: 1=tightened considerably, 2=tightened somewhat, 3=remained basically unchanged, 4=eased somewhat, 5=eased considerably.)
a. Terms for large and middle-market firms (annual sales of $50 million or more):
All Respondents | Large Banks | Other Banks | |
---|---|---|---|
Mean | Mean | Mean | |
Maximum size of credit lines | 3.05 | 3.11 | 2.95 |
Maximum maturity of loans or credit lines | 3.04 | 3.03 | 3.05 |
Costs of credit lines | 3.16 | 3.22 | 3.05 |
Spreads of loan rates over your bank's cost of funds (wider spreads=tightened, narrower spreads=eased) | 3.45 | 3.42 | 3.50 |
Premiums charged on riskier loans | 3.09 | 3.08 | 3.10 |
Loan covenants | 3.18 | 3.28 | 3.00 |
Collateralization requirements | 3.04 | 3.06 | 3.00 |
Other (please specify) | 2.75 | 2.50 | 3.00 |
Number of banks responding | 56 | 36 | 20 |
b. Terms for small firms (annual sales of less than $50 million):
All Respondents | Large Banks | Other Banks | |
---|---|---|---|
Mean | Mean | Mean | |
Maximum size of credit lines | 3.04 | 3.09 | 2.95 |
Maximum maturity of loans or credit lines | 3.06 | 3.06 | 3.05 |
Costs of credit lines | 3.11 | 3.15 | 3.05 |
Spreads of loan rates over your bank's cost of funds (wider spreads=tightened, narrower spreads=eased) | 3.30 | 3.26 | 3.35 |
Premiums charged on riskier loans | 3.04 | 3.06 | 3.00 |
Loan covenants | 3.04 | 3.09 | 2.95 |
Collateralization requirements | 3.00 | 3.00 | 3.00 |
Other (please specify) | 3.00 | 3.00 | 3.00 |
Number of banks responding | 54 | 34 | 20 |
3. If your bank has tightened or eased its credit standards or its terms for C&I loans or credit lines over the past three months (as described in questions 1 and 2), how important have been the following possible reasons for the change? (Please respond to either A, B, or both as appropriate and rate each possible reason using the following scale: 1=not important, 2=somewhat important, 3=very important.)
a. Possible reasons for tightening credit standards or loan terms:
All Respondents | Large Banks | Other Banks | |
---|---|---|---|
Mean | Mean | Mean | |
Deterioration in your bank's current or expected capital position | 1.38 | 1.50 | 1.00 |
Less favorable or more uncertain economic outlook | 1.77 | 1.80 | 1.67 |
Worsening of industry-specific problems (please specify industries) | 1.69 | 1.80 | 1.33 |
Less aggressive competition from other banks or nonbank lenders (other financial intermediaries or the capital markets) | 1.46 | 1.40 | 1.67 |
Reduced tolerance for risk | 1.69 | 1.60 | 2.00 |
Decreased liquidity in the secondary market for these loans | 1.23 | 1.30 | 1.00 |
Increase in defaults by borrowers in public debt markets | 1.15 | 1.20 | 1.00 |
Other (please specify) | 2.67 | 2.67 | 0.00 |
Number of banks responding | 14 | 11 | 3 |
b. Possible reasons for easing credit standards or loan terms:
All Respondents | Large Banks | Other Banks | |
---|---|---|---|
Mean | Mean | Mean | |
Improvement in your bank's current or expected capital position | 1.10 | 1.09 | 1.14 |
More favorable or less uncertain economic outlook | 1.24 | 1.23 | 1.29 |
Improvement in industry-specific problems (please specify industries) | 1.03 | 1.05 | 1.00 |
More aggressive competition from other banks or nonbank lenders (other financial intermediaries or the capital markets) | 2.66 | 2.59 | 2.86 |
Increased tolerance for risk | 1.17 | 1.23 | 1.00 |
Increased liquidity in the secondary market for these loans | 1.14 | 1.18 | 1.00 |
Reduction in defaults by borrowers in public debt markets | 1.21 | 1.27 | 1.00 |
Other (please specify) | 1.00 | 1.00 | 1.00 |
Number of banks responding | 29 | 22 | 7 |
4. Apart from normal seasonal variation, how has demand for C&I loans changed over the past three months? (Please consider only funds actually disbursed as opposed to requests for new or increased lines of credit.)
a. Demand for C&I loans from large and middle-market firms (annual sales of $50 million or more):
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Substantially stronger | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Moderately stronger | 11 | 19.3 | 9 | 24.3 | 2 | 10.0 |
About the same | 34 | 59.6 | 20 | 54.1 | 14 | 70.0 |
Moderately weaker | 12 | 21.1 | 8 | 21.6 | 4 | 20.0 |
Substantially weaker | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 57 | 100.0 | 37 | 100.0 | 20 | 100.0 |
b. Demand for C&I loans from small firms (annual sales of less than $50 million):
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Substantially stronger | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Moderately stronger | 9 | 16.1 | 8 | 22.2 | 1 | 5.0 |
About the same | 35 | 62.5 | 19 | 52.8 | 16 | 80.0 |
Moderately weaker | 12 | 21.4 | 9 | 25.0 | 3 | 15.0 |
Substantially weaker | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 56 | 100.0 | 36 | 100.0 | 20 | 100.0 |
5. If demand for C&I loans has strengthened or weakened over the past three months (as described in question 4), how important have been the following possible reasons for the change? (Please respond to either A, B, or both as appropriate and rate each possible reason using the following scale: 1=not important, 2=somewhat important, 3=very important.)
a. If stronger loan demand (answer 1 or 2 to question 4A or 4B), possible reasons:
All Respondents | Large Banks | Other Banks | |
---|---|---|---|
Mean | Mean | Mean | |
Customer inventory financing needs increased | 1.69 | 1.55 | 2.50 |
Customer accounts receivable financing needs increased | 1.54 | 1.36 | 2.50 |
Customer investment in plant or equipment increased | 1.85 | 1.73 | 2.50 |
Customer internally generated funds decreased | 1.31 | 1.27 | 1.50 |
Customer merger or acquisition financing needs increased | 2.31 | 2.36 | 2.00 |
Customer borrowing shifted to your bank from other bank or nonbank sources because these other sources became less attractive | 1.46 | 1.55 | 1.00 |
Other (please specify) | 3.00 | 3.00 | 0.00 |
Number of banks responding | 13 | 11 | 2 |
b. If weaker loan demand (answer 4 or 5 to question 4A or 4B), possible reasons:
All Respondents | Large Banks | Other Banks | |
---|---|---|---|
Mean | Mean | Mean | |
Customer inventory financing needs decreased | 1.50 | 1.58 | 1.25 |
Customer accounts receivable financing needs decreased | 1.56 | 1.67 | 1.25 |
Customer investment in plant or equipment decreased | 1.88 | 2.00 | 1.50 |
Customer internally generated funds increased | 1.38 | 1.42 | 1.25 |
Customer merger or acquisition financing needs decreased | 1.25 | 1.25 | 1.25 |
Customer borrowing shifted from your bank to other bank or nonbank credit sources because these other sources became more attractive | 1.56 | 1.50 | 1.75 |
Other (please specify) | 2.00 | 3.00 | 1.00 |
Number of banks responding | 16 | 12 | 4 |
6. At your bank, how has the number of inquiries from potential business borrowers regarding the availability and terms of new credit lines or increases in existing lines changed over the past three months? (Please consider only inquiries for additional C&I lines as opposed to the refinancing of existing loans.)
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
The number of inquiries has increased substantially | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
The number of inquiries has increased moderately | 8 | 14.0 | 5 | 13.5 | 3 | 15.0 |
The number of inquiries has stayed about the same | 38 | 66.7 | 26 | 70.3 | 12 | 60.0 |
The number of inquiries has decreased moderately | 11 | 19.3 | 6 | 16.2 | 5 | 25.0 |
The number of inquiries has decreased substantially | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 57 | 100.0 | 37 | 100.0 | 20 | 100.0 |
7. Over the past three months, how have your bank's credit standards for approving applications for commercial real estate loans changed?
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Tightened considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Tightened somewhat | 19 | 33.3 | 12 | 32.4 | 7 | 35.0 |
Remained basically unchanged | 34 | 59.6 | 22 | 59.5 | 12 | 60.0 |
Eased somewhat | 4 | 7.0 | 3 | 8.1 | 1 | 5.0 |
Eased considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 57 | 100.0 | 37 | 100.0 | 20 | 100.0 |
8. Apart from normal seasonal variation, how has demand for commercial real estate loans changed over the past three months?
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Substantially stronger | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Moderately stronger | 3 | 5.3 | 1 | 2.7 | 2 | 10.0 |
About the same | 31 | 54.4 | 20 | 54.1 | 11 | 55.0 |
Moderately weaker | 22 | 38.6 | 15 | 40.5 | 7 | 35.0 |
Substantially weaker | 1 | 1.8 | 1 | 2.7 | 0 | 0.0 |
Total | 57 | 100.0 | 37 | 100.0 | 20 | 100.0 |
9. Over the past year , how have the following terms on commercial real estate loans changed? (Please assign each term a number between 1 and 5 using the following scale: 1=tightened considerably, 2=tightened somewhat, 3=remained basically unchanged, 4=eased somewhat, 5=eased considerably.)
All Respondents | Large Banks | Other Banks | |
---|---|---|---|
Mean | Mean | Mean | |
Maximum loan size | 3.09 | 3.14 | 3.00 |
Maximum loan maturity | 3.07 | 3.08 | 3.05 |
Spreads of loan rates over your bank's cost of funds (wider spreads=tightened, narrower spreads=eased) | 3.58 | 3.57 | 3.60 |
Loan-to-value ratios | 3.04 | 3.03 | 3.05 |
Requirements for take-out financing | 3.02 | 3.03 | 3.00 |
Debt-service coverage ratios | 3.09 | 3.11 | 3.05 |
Other (please specify) | 2.11 | 2.25 | 1.00 |
Number of banks responding | 57 | 37 | 20 |
10. If your bank has tightened or eased its terms for commercial real estate loans over the past year (as described in question 9), how important have been the following possible reasons for the change? (Please respond to either A, B, or both as appropriate and rate each possible reason using the following scale: 1=not important, 2=somewhat important, 3=very important.)
a. Possible reasons for tightening commercial real estate loan terms:
All Respondents | Large Banks | Other Banks | |
---|---|---|---|
Mean | Mean | Mean | |
Less favorable economic outlook | 2.05 | 2.20 | 1.67 |
Worsening of the condition of, or the outlook for, commercial real estate in the markets where your bank operates | 2.00 | 2.13 | 1.67 |
Less aggressive competition from other banks or nonbank lenders (other financial intermediaries or the capital markets) | 1.14 | 1.20 | 1.00 |
Reduced tolerance for risk | 1.76 | 1.80 | 1.67 |
Less liquid market for securities collateralized by these loans | 1.14 | 1.20 | 1.00 |
The federal banking agencies' guidance on concentrations in commercial real estate lending | 1.33 | 1.40 | 1.17 |
Other (please specify) | 2.33 | 2.33 | 0.00 |
Number of banks responding | 21 | 15 | 6 |
b. Possible reasons for easing commercial real estate loan terms:
All Respondents | Large Banks | Other Banks | |
---|---|---|---|
Mean | Mean | Mean | |
More favorable economic outlook | 1.28 | 1.26 | 1.33 |
Improvement in the condition of, or the outlook for, commercial real estate in the markets where your bank operates | 1.38 | 1.39 | 1.33 |
More aggressive competition from other banks or nonbank lenders (other financial intermediaries or the capital markets) | 2.50 | 2.39 | 2.78 |
Increased tolerance for risk | 1.13 | 1.13 | 1.11 |
More liquid market for securities collateralized by these loans | 1.47 | 1.48 | 1.44 |
The federal banking agencies' guidance on concentrations in commercial real estate lending | 1.06 | 1.09 | 1.00 |
Other (please specify) | 2.00 | 2.00 | 0.00 |
Number of banks responding | 32 | 23 | 9 |
11. Over the past three months, how have your bank's credit standards for approving applications from individuals for mortgage loans to purchase homes changed?
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Tightened considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Tightened somewhat | 10 | 18.2 | 8 | 22.2 | 2 | 10.5 |
Remained basically unchanged | 44 | 80.0 | 28 | 77.8 | 16 | 84.2 |
Eased somewhat | 1 | 1.8 | 0 | 0.0 | 1 | 5.3 |
Eased considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 55 | 100.0 | 36 | 100.0 | 19 | 100.0 |
12. Apart from normal seasonal variation, how has demand for mortgages to purchase homes changed over the past three months? (Please consider only new originations as opposed to the refinancing of existing mortgages.)
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Substantially stronger | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Moderately stronger | 3 | 5.6 | 3 | 8.3 | 0 | 0.0 |
About the same | 28 | 51.9 | 15 | 41.7 | 13 | 72.2 |
Moderately weaker | 22 | 40.7 | 18 | 50.0 | 4 | 22.2 |
Substantially weaker | 1 | 1.9 | 0 | 0.0 | 1 | 5.6 |
Total | 54 | 100.0 | 36 | 100.0 | 18 | 100.0 |
13. Please indicate your bank's willingness to make consumer installment loans now as opposed to three months ago.
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Much more willing | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Somewhat more willing | 2 | 3.6 | 2 | 5.7 | 0 | 0.0 |
About unchanged | 52 | 94.5 | 33 | 94.3 | 19 | 95.0 |
Somewhat less willing | 1 | 1.8 | 0 | 0.0 | 1 | 5.0 |
Much less willing | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 55 | 100.0 | 35 | 100.0 | 20 | 100.0 |
14. Over the past three months, how have your bank's credit standards for approving applications for credit cards from individuals or households changed?
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Tightened considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Tightened somewhat | 2 | 5.7 | 2 | 9.5 | 0 | 0.0 |
Remained basically unchanged | 31 | 88.6 | 18 | 85.7 | 13 | 92.9 |
Eased somewhat | 2 | 5.7 | 1 | 4.8 | 1 | 7.1 |
Eased considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 35 | 100.0 | 21 | 100.0 | 14 | 100.0 |
15. Over the past three months, how have your bank's credit standards for approving applications for consumer loans other than credit card loans changed?
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Tightened considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Tightened somewhat | 3 | 5.5 | 2 | 5.7 | 1 | 5.0 |
Remained basically unchanged | 49 | 89.1 | 30 | 85.7 | 19 | 95.0 |
Eased somewhat | 3 | 5.5 | 3 | 8.6 | 0 | 0.0 |
Eased considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 55 | 100.0 | 35 | 100.0 | 20 | 100.0 |
16. Over the past three months, how has your bank changed the following terms and conditions on new or existing credit card accounts for individuals or households? (Please assign each term a number between 1 and 5 using the following scale: 1=tightened considerably, 2=tightened somewhat, 3=remained basically unchanged, 4=eased somewhat, 5=eased considerably.)
All Respondents | Large Banks | Other Banks | |
---|---|---|---|
Mean | Mean | Mean | |
Credit limits | 3.06 | 3.05 | 3.08 |
Spreads of interest rates charged on outstanding balances over your bank's cost of funds (wider spreads=tightened, narrower spreads=eased) | 3.09 | 3.00 | 3.23 |
Minimum percent of outstanding balances required to be repaid each month | 2.94 | 2.90 | 3.00 |
Minimum required credit score (increased score=tightened, reduced score=eased) | 2.97 | 2.90 | 3.08 |
The extent to which loans are granted to some customers that do not meet credit scoring thresholds (increased=eased, decreased=tightened) | 2.94 | 2.95 | 2.92 |
Other (please specify) | 0.00 | 0.00 | 0.00 |
Number of banks responding | 34 | 21 | 13 |
17. Over the past three months, how has your bank changed the following terms and conditions on consumer loans other than credit card loans? (Please assign each term a number between 1 and 5 using the following scale: 1=tightened considerably, 2=tightened somewhat, 3=remained basically unchanged, 4=eased somewhat, 5=eased considerably.)
All Respondents | Large Banks | Other Banks | |
---|---|---|---|
Mean | Mean | Mean | |
Maximum maturity | 3.07 | 3.09 | 3.05 |
Spreads of loan rates over your bank's cost of funds (wider spreads=tightened, narrower spreads=eased) | 3.00 | 2.89 | 3.20 |
Minimum required downpayment | 3.02 | 3.03 | 3.00 |
Minimum required credit score (increased score=tightened, reduced score=eased) | 2.98 | 2.97 | 3.00 |
The extent to which loans are granted to some customers that do not meet credit scoring thresholds (increased=eased, decreased=tightened) | 2.89 | 2.86 | 2.95 |
Other (please specify) | 2.00 | 2.00 | 0.00 |
Number of banks responding | 55 | 35 | 20 |
18. Apart from normal seasonal variation, how has demand for consumer loans of all types changed over the past three months?
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Substantially stronger | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Moderately stronger | 4 | 7.3 | 3 | 8.6 | 1 | 5.0 |
About the same | 29 | 52.7 | 17 | 48.6 | 12 | 60.0 |
Moderately weaker | 21 | 38.2 | 14 | 40.0 | 7 | 35.0 |
Substantially weaker | 1 | 1.8 | 1 | 2.9 | 0 | 0.0 |
Total | 55 | 100.0 | 35 | 100.0 | 20 | 100.0 |
19. How has your bank changed its lending policy for credit card loans in response to the bankruptcy reform legislation? (Please assign each term a number between 1 and 5 using the following scale: 1=tightened considerably, 2=tightened somewhat, 3=remained basically unchanged, 4=eased somewhat, 5=eased considerably.)
All Respondents | Large Banks | Other Banks | |
---|---|---|---|
Mean | Mean | Mean | |
Credit standards | 2.94 | 2.95 | 2.93 |
Price-related terms (higher fees and wider spreads=tightened; lower fees and narrower spreads=eased) | 3.00 | 3.00 | 3.00 |
Non-price-related terms | 3.00 | 3.00 | 3.00 |
Number of banks responding | 36 | 21 | 15 |
20. After accounting for changes in standards and terms, how is the bankruptcy reform legislation expected to affect your bank's chargeoffs on new credit card loans in the long term? Chargeoffs will be:
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
About the same | 26 | 76.5 | 15 | 75.0 | 11 | 78.6 |
Moderately lower | 6 | 17.6 | 3 | 15.0 | 3 | 21.4 |
Substantially lower | 2 | 5.9 | 2 | 10.0 | 0 | 0.0 |
Total | 34 | 100.0 | 20 | 100.0 | 14 | 100.0 |
21. Assuming that economic activity progresses in line with consensus forecasts, what is your outlook for delinquencies and chargeoffs on your bank's loans to businesses in 2007?
a. Outlook for loan quality on C&I loans:
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Loan quality is likely to improve substantially | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Loan quality is likely to improve somewhat | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Loan quality is likely to stabilize around current levels | 29 | 54.7 | 17 | 51.5 | 12 | 60.0 |
Loan quality is likely to deteriorate somewhat | 24 | 45.3 | 16 | 48.5 | 8 | 40.0 |
Loan quality is likely to deteriorate substantially | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 53 | 100.0 | 33 | 100.0 | 20 | 100.0 |
b. Outlook for loan quality on commercial real estate loans:
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Loan quality is likely to improve substantially | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Loan quality is likely to improve somewhat | 2 | 3.7 | 2 | 5.9 | 0 | 0.0 |
Loan quality is likely to stabilize around current levels | 27 | 50.0 | 13 | 38.2 | 14 | 70.0 |
Loan quality is likely to deteriorate somewhat | 25 | 46.3 | 19 | 55.9 | 6 | 30.0 |
Loan quality is likely to deteriorate substantially | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 54 | 100.0 | 34 | 100.0 | 20 | 100.0 |
22. Assuming that economic activity progresses in line with consensus forecasts, what is your outlook for delinquencies and chargeoffs on your bank's loans to households in 2007?
a. Outlook for loan quality on credit card loans:
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Loan quality is likely to improve substantially | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Loan quality is likely to improve somewhat | 1 | 2.9 | 1 | 5.0 | 0 | 0.0 |
Loan quality is likely to stabilize around current levels | 20 | 58.8 | 9 | 45.0 | 11 | 78.6 |
Loan quality is likely to deteriorate somewhat | 13 | 38.2 | 10 | 50.0 | 3 | 21.4 |
Loan quality is likely to deteriorate substantially | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 34 | 100.0 | 20 | 100.0 | 14 | 100.0 |
b. Outlook for loan quality on consumer loans other than credit cards:
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Loan quality is likely to improve substantially | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Loan quality is likely to improve somewhat | 1 | 1.9 | 1 | 2.9 | 0 | 0.0 |
Loan quality is likely to stabilize around current levels | 32 | 59.3 | 17 | 50.0 | 15 | 75.0 |
Loan quality is likely to deteriorate somewhat | 20 | 37.0 | 15 | 44.1 | 5 | 25.0 |
Loan quality is likely to deteriorate substantially | 1 | 1.9 | 1 | 2.9 | 0 | 0.0 |
Total | 54 | 100.0 | 34 | 100.0 | 20 | 100.0 |
c. Outlook for loan quality on traditional residential mortgage loans:*
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Loan quality is likely to improve substantially | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Loan quality is likely to improve somewhat | 2 | 3.8 | 2 | 5.9 | 0 | 0.0 |
Loan quality is likely to stabilize around current levels | 29 | 54.7 | 13 | 38.2 | 16 | 84.2 |
Loan quality is likely to deteriorate somewhat | 22 | 41.5 | 19 | 55.9 | 3 | 15.8 |
Loan quality is likely to deteriorate substantially | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 53 | 100.0 | 34 | 100.0 | 19 | 100.0 |
d. Outlook for loan quality on nontraditional residential mortgage loans:
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Loan quality is likely to improve substantially | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Loan quality is likely to improve somewhat | 1 | 2.1 | 1 | 3.1 | 0 | 0.0 |
Loan quality is likely to stabilize around current levels | 22 | 45.8 | 12 | 37.5 | 10 | 62.5 |
Loan quality is likely to deteriorate somewhat | 21 | 43.8 | 16 | 50.0 | 5 | 31.3 |
Loan quality is likely to deteriorate substantially | 4 | 8.3 | 3 | 9.4 | 1 | 6.3 |
Total | 48 | 100.0 | 32 | 100.0 | 16 | 100.0 |
*Traditional mortgage products include fixed-rate mortgages, standard adjustable-rate mortgages, and common hybrid adjustable-rate mortgagesthat is, mortgages for which the interest rate is initially fixed for a multi-year period and subsequently adjusts more frequently.
Nontraditional mortgage products include, but are not limited to, adjustable-rate mortgages with multiple payment options, interest-only mortgages, and "Alt-A" products such as mortgages with limited income verification and mortgages secured by non-owner-occupied properties.
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