Senior Loan Officer Opinion Survey on Bank Lending Practices
January 2012

Table 1

Senior Loan Officer Opinion Survey on Bank Lending Practices
at Selected Large Banks in the United States ¹

(Status of policy as of January 2012)

Questions 1-6 ask about commercial and industrial (C&I) loans at your bank. Questions 1-3 deal with changes in your bank's lending policies over the past three months. Questions 4-5 deal with changes in demand for C&I loans over the past three months. Question 6 asks about changes in prospective demand for C&I loans at your bank, as indicated by the volume of recent inquiries about the availability of new credit lines or increases in existing lines. If your bank's lending policies have not changed over the past three months, please report them as unchanged even if the policies are either restrictive or accommodative relative to longer-term norms. If your bank's policies have tightened or eased over the past three months, please so report them regardless of how they stand relative to longer-term norms. Also, please report changes in enforcement of existing policies as changes in policies.

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	5.4	2	5.9	1	4.5
Remained basically unchanged	53	94.6	32	94.1	21	95.5
Eased somewhat	0	0.0	0	0.0	0	0.0
Eased considerably	0	0.0	0	0.0	0	0.0
Total	56	100.0	34	100.0	22	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	2	3.8	1	3.2	1	4.5
Remained basically unchanged	50	94.3	29	93.5	21	95.5
Eased somewhat	1	1.9	1	3.2	0	0.0
Eased considerably	0	0.0	0	0.0	0	0.0
Total	53	100.0	31	100.0	22	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?

A. Terms for large and middle-market firms (annual sales of $50 million or more):

a. Maximum size of credit lines

	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	3	8.8	1	4.5
Remained basically unchanged	45	80.4	25	73.5	20	90.9
Eased somewhat	7	12.5	6	17.6	1	4.5
Eased considerably	0	0.0	0	0.0	0	0.0
Total	56	100.0	34	100.0	22	100.0

b. Maximum maturity of loans or credit lines

	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	1	1.8	1	2.9	0	0.0
Remained basically unchanged	50	89.3	28	82.4	22	100.0
Eased somewhat	5	8.9	5	14.7	0	0.0
Eased considerably	0	0.0	0	0.0	0	0.0
Total	56	100.0	34	100.0	22	100.0

c. Costs of credit lines

	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	1	1.8	1	2.9	0	0.0
Remained basically unchanged	40	71.4	25	73.5	15	68.2
Eased somewhat	15	26.8	8	23.5	7	31.8
Eased considerably	0	0.0	0	0.0	0	0.0
Total	56	100.0	34	100.0	22	100.0

d. Spreads of loan rates over your bank's cost of funds (wider spreads=tightened, narrower spreads=eased)

	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	1	1.8	1	2.9	0	0.0
Remained basically unchanged	28	50.0	19	55.9	9	40.9
Eased somewhat	27	48.2	14	41.2	13	59.1
Eased considerably	0	0.0	0	0.0	0	0.0
Total	56	100.0	34	100.0	22	100.0

e. Premiums charged on riskier loans

	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	5	8.9	4	11.8	1	4.5
Remained basically unchanged	48	85.7	28	82.4	20	90.9
Eased somewhat	3	5.4	2	5.9	1	4.5
Eased considerably	0	0.0	0	0.0	0	0.0
Total	56	100.0	34	100.0	22	100.0

f. Loan covenants

	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	5.4	2	5.9	1	4.5
Remained basically unchanged	48	85.7	28	82.4	20	90.9
Eased somewhat	5	8.9	4	11.8	1	4.5
Eased considerably	0	0.0	0	0.0	0	0.0
Total	56	100.0	34	100.0	22	100.0

g. Collateralization requirements

	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	3.6	1	2.9	1	4.5
Remained basically unchanged	53	94.6	32	94.1	21	95.5
Eased somewhat	1	1.8	1	2.9	0	0.0
Eased considerably	0	0.0	0	0.0	0	0.0
Total	56	100.0	34	100.0	22	100.0

h. Use of interest rate floors (more use=tightened, less use=eased)

	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	0	0.0	0	0.0	0	0.0
Remained basically unchanged	34	63.0	20	62.5	14	63.6
Eased somewhat	17	31.5	11	34.4	6	27.3
Eased considerably	3	5.6	1	3.1	2	9.1
Total	54	100.0	32	100.0	22	100.0

B. Terms for small firms (annual sales of less than $50 million):

a. Maximum size of credit lines

	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	3.8	1	3.2	1	4.5
Remained basically unchanged	49	92.5	29	93.5	20	90.9
Eased somewhat	2	3.8	1	3.2	1	4.5
Eased considerably	0	0.0	0	0.0	0	0.0
Total	53	100.0	31	100.0	22	100.0

b. Maximum maturity of loans or credit lines

	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	1	1.9	1	3.2	0	0.0
Remained basically unchanged	49	92.5	27	87.1	22	100.0
Eased somewhat	3	5.7	3	9.7	0	0.0
Eased considerably	0	0.0	0	0.0	0	0.0
Total	53	100.0	31	100.0	22	100.0

c. Costs of credit lines

	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	0	0.0	0	0.0	0	0.0
Remained basically unchanged	43	81.1	26	83.9	17	77.3
Eased somewhat	10	18.9	5	16.1	5	22.7
Eased considerably	0	0.0	0	0.0	0	0.0
Total	53	100.0	31	100.0	22	100.0

d. Spreads of loan rates over your bank's cost of funds (wider spreads=tightened, narrower spreads=eased)

	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	1	1.9	1	3.2	0	0.0
Remained basically unchanged	28	52.8	16	51.6	12	54.5
Eased somewhat	24	45.3	14	45.2	10	45.5
Eased considerably	0	0.0	0	0.0	0	0.0
Total	53	100.0	31	100.0	22	100.0

e. Premiums charged on riskier loans

	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	3.8	1	3.2	1	4.5
Remained basically unchanged	48	90.6	28	90.3	20	90.9
Eased somewhat	3	5.7	2	6.5	1	4.5
Eased considerably	0	0.0	0	0.0	0	0.0
Total	53	100.0	31	100.0	22	100.0

f. Loan covenants

	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	5.7	2	6.5	1	4.5
Remained basically unchanged	45	84.9	25	80.6	20	90.9
Eased somewhat	5	9.4	4	12.9	1	4.5
Eased considerably	0	0.0	0	0.0	0	0.0
Total	53	100.0	31	100.0	22	100.0

g. Collateralization requirements

	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	1	1.9	1	3.2	0	0.0
Remained basically unchanged	49	92.5	27	87.1	22	100.0
Eased somewhat	3	5.7	3	9.7	0	0.0
Eased considerably	0	0.0	0	0.0	0	0.0
Total	53	100.0	31	100.0	22	100.0

h. Use of interest rate floors (more use=tightened, less use=eased)

	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	0	0.0	0	0.0	0	0.0
Remained basically unchanged	34	65.4	20	66.7	14	63.6
Eased somewhat	16	30.8	9	30.0	7	31.8
Eased considerably	2	3.8	1	3.3	1	4.5
Total	52	100.0	30	100.0	22	100.0

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?

A. Possible reasons for tightening credit standards or loan terms:

a. Deterioration in your bank's current or expected capital position

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Not important	6	75.0	4	66.7	2	100.0
Somewhat important	2	25.0	2	33.3	0	0.0
Very important	0	0.0	0	0.0	0	0.0
Total	8	100.0	6	100.0	2	100.0

b. Less favorable or more uncertain economic outlook

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Not important	1	12.5	1	16.7	0	0.0
Somewhat important	6	75.0	4	66.7	2	100.0
Very important	1	12.5	1	16.7	0	0.0
Total	8	100.0	6	100.0	2	100.0

c. Worsening of industry-specific problems (please specify industries)

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Not important	6	75.0	5	83.3	1	50.0
Somewhat important	2	25.0	1	16.7	1	50.0
Very important	0	0.0	0	0.0	0	0.0
Total	8	100.0	6	100.0	2	100.0

d. Less aggressive competition from other banks or nonbank lenders (other financial intermediaries or the capital markets)

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Not important	6	75.0	4	66.7	2	100.0
Somewhat important	2	25.0	2	33.3	0	0.0
Very important	0	0.0	0	0.0	0	0.0
Total	8	100.0	6	100.0	2	100.0

e. Reduced tolerance for risk

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Not important	3	37.5	3	50.0	0	0.0
Somewhat important	3	37.5	2	33.3	1	50.0
Very important	2	25.0	1	16.7	1	50.0
Total	8	100.0	6	100.0	2	100.0

f. Decreased liquidity in the secondary market for these loans

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Not important	6	75.0	4	66.7	2	100.0
Somewhat important	1	12.5	1	16.7	0	0.0
Very important	1	12.5	1	16.7	0	0.0
Total	8	100.0	6	100.0	2	100.0

g. Deterioration in your bank's current or expected liquidity position

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Not important	7	87.5	5	83.3	2	100.0
Somewhat important	1	12.5	1	16.7	0	0.0
Very important	0	0.0	0	0.0	0	0.0
Total	8	100.0	6	100.0	2	100.0

h. Increased concerns about the effects of legislative changes, supervisory actions, or changes in accounting standards

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Not important	3	37.5	2	33.3	1	50.0
Somewhat important	3	37.5	3	50.0	0	0.0
Very important	2	25.0	1	16.7	1	50.0
Total	8	100.0	6	100.0	2	100.0

B. Possible reasons for easing credit standards or loan terms:

a. Improvement in your bank's current or expected capital position

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Not important	30	100.0	18	100.0	12	100.0
Somewhat important	0	0.0	0	0.0	0	0.0
Very important	0	0.0	0	0.0	0	0.0
Total	30	100.0	18	100.0	12	100.0

b. More favorable or less uncertain economic outlook

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Not important	22	73.3	11	61.1	11	91.7
Somewhat important	8	26.7	7	38.9	1	8.3
Very important	0	0.0	0	0.0	0	0.0
Total	30	100.0	18	100.0	12	100.0

c. Improvement in industry-specific problems (please specify industries)

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Not important	25	86.2	15	83.3	10	90.9
Somewhat important	4	13.8	3	16.7	1	9.1
Very important	0	0.0	0	0.0	0	0.0
Total	29	100.0	18	100.0	11	100.0

d. More aggressive competition from other banks or nonbank lenders (other financial intermediaries or the capital markets)

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Not important	0	0.0	0	0.0	0	0.0
Somewhat important	17	54.8	8	42.1	9	75.0
Very important	14	45.2	11	57.9	3	25.0
Total	31	100.0	19	100.0	12	100.0

e. Increased tolerance for risk

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Not important	25	83.3	13	72.2	12	100.0
Somewhat important	5	16.7	5	27.8	0	0.0
Very important	0	0.0	0	0.0	0	0.0
Total	30	100.0	18	100.0	12	100.0

f. Increased liquidity in the secondary market for these loans

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Not important	24	80.0	15	83.3	9	75.0
Somewhat important	5	16.7	2	11.1	3	25.0
Very important	1	3.3	1	5.6	0	0.0
Total	30	100.0	18	100.0	12	100.0

g. Improvement in your bank's current or expected liquidity position

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Not important	26	86.7	17	94.4	9	75.0
Somewhat important	3	10.0	1	5.6	2	16.7
Very important	1	3.3	0	0.0	1	8.3
Total	30	100.0	18	100.0	12	100.0

h. Reduced concerns about the effects of legislative changes, supervisory actions, or changes in accounting standards

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Not important	29	96.7	17	94.4	12	100.0
Somewhat important	1	3.3	1	5.6	0	0.0
Very important	0	0.0	0	0.0	0	0.0
Total	30	100.0	18	100.0	12	100.0

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	1	1.8	0	0.0	1	4.5
Moderately stronger	16	28.6	11	32.4	5	22.7
About the same	33	58.9	19	55.9	14	63.6
Moderately weaker	6	10.7	4	11.8	2	9.1
Substantially weaker	0	0.0	0	0.0	0	0.0
Total	56	100.0	34	100.0	22	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	14	26.4	8	25.8	6	27.3
About the same	33	62.3	19	61.3	14	63.6
Moderately weaker	6	11.3	4	12.9	2	9.1
Substantially weaker	0	0.0	0	0.0	0	0.0
Total	53	100.0	31	100.0	22	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?

A. If stronger loan demand (answer 1 or 2 to question 4A or 4B), possible reasons:

a. Customer inventory financing needs increased

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Not important	7	35.0	6	46.2	1	14.3
Somewhat important	13	65.0	7	53.8	6	85.7
Very important	0	0.0	0	0.0	0	0.0
Total	20	100.0	13	100.0	7	100.0

b. Customer accounts receivable financing needs increased

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Not important	7	35.0	6	46.2	1	14.3
Somewhat important	13	65.0	7	53.8	6	85.7
Very important	0	0.0	0	0.0	0	0.0
Total	20	100.0	13	100.0	7	100.0

c. Customer investment in plant or equipment increased

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Not important	9	45.0	8	61.5	1	14.3
Somewhat important	10	50.0	5	38.5	5	71.4
Very important	1	5.0	0	0.0	1	14.3
Total	20	100.0	13	100.0	7	100.0

d. Customer internally generated funds decreased

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Not important	17	89.5	11	84.6	6	100.0
Somewhat important	2	10.5	2	15.4	0	0.0
Very important	0	0.0	0	0.0	0	0.0
Total	19	100.0	13	100.0	6	100.0

e. Customer merger or acquisition financing needs increased

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Not important	5	26.3	3	23.1	2	33.3
Somewhat important	12	63.2	8	61.5	4	66.7
Very important	2	10.5	2	15.4	0	0.0
Total	19	100.0	13	100.0	6	100.0

f. Customer borrowing shifted to your bank from other bank or nonbank sources because these other sources became less attractive

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Not important	10	50.0	5	38.5	5	71.4
Somewhat important	8	40.0	6	46.2	2	28.6
Very important	2	10.0	2	15.4	0	0.0
Total	20	100.0	13	100.0	7	100.0

B. If weaker loan demand (answer 4 or 5 to question 4A or 4B), possible reasons:

a. Customer inventory financing needs decreased

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Not important	3	42.9	2	40.0	1	50.0
Somewhat important	4	57.1	3	60.0	1	50.0
Very important	0	0.0	0	0.0	0	0.0
Total	7	100.0	5	100.0	2	100.0

b. Customer accounts receivable financing needs decreased

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Not important	3	42.9	2	40.0	1	50.0
Somewhat important	4	57.1	3	60.0	1	50.0
Very important	0	0.0	0	0.0	0	0.0
Total	7	100.0	5	100.0	2	100.0

c. Customer investment in plant or equipment decreased

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Not important	1	14.3	0	0.0	1	50.0
Somewhat important	4	57.1	4	80.0	0	0.0
Very important	2	28.6	1	20.0	1	50.0
Total	7	100.0	5	100.0	2	100.0

d. Customer internally generated funds increased

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Not important	2	33.3	1	25.0	1	50.0
Somewhat important	4	66.7	3	75.0	1	50.0
Very important	0	0.0	0	0.0	0	0.0
Total	6	100.0	4	100.0	2	100.0

e. Customer merger or acquisition financing needs decreased

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Not important	2	28.6	2	40.0	0	0.0
Somewhat important	3	42.9	2	40.0	1	50.0
Very important	2	28.6	1	20.0	1	50.0
Total	7	100.0	5	100.0	2	100.0

f. Customer borrowing shifted from your bank to other bank or nonbank credit sources because these other sources became more attractive

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Not important	6	85.7	5	100.0	1	50.0
Somewhat important	1	14.3	0	0.0	1	50.0
Very important	0	0.0	0	0.0	0	0.0
Total	7	100.0	5	100.0	2	100.0

6. At your bank, apart from seasonal variation, 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 or increased 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	1	1.8	1	2.9	0	0.0
The number of inquiries has increased moderately	12	21.4	8	23.5	4	18.2
The number of inquiries has stayed about the same	37	66.1	21	61.8	16	72.7
The number of inquiries has decreased moderately	6	10.7	4	11.8	2	9.1
The number of inquiries has decreased substantially	0	0.0	0	0.0	0	0.0
Total	56	100.0	34	100.0	22	100.0

The ongoing fiscal and financial strains in Europe may have affected lending conditions for nonfinancial companies that have operations in the United States and significant exposure to European economies, as well as banks headquartered in Europe and their affiliates and subsidiaries. Question 7 deals with changes in your bank's lending policies toward both types of firms over the past three months. In addition, developments in Europe may have affected these firms' demand for credit from U.S. banks. Questions 8-9 deal with such changes in demand. Question 10 asks about increases in business as a result of change in competition from European banks and their affiliates and subsidiaries.
In answering these questions, please consider your bank's C&I lending to all nonfinancial companies with operations in the United States and significant exposure to European economies (that is, please consider your bank's C&I loans both to European firms that are located in the United States and to domestic firms that conduct a significant portion of their business with European firms). With regard to banks, please consider your bank's lending, or extension of credit lines, to banks headquartered in Europe and to the affiliates and subsidiaries of European banks regardless of the location of those affiliates and subsidiaries.

7. Over the past three months, how have your bank's credit standards and terms for approving applications for loans or credit lines—other than those to be used to finance mergers and acquisitions—for the following types of firms changed?

A. Nonfinancial companies that have operations in the United States and significant exposure to European economies (as described in the introduction to these special questions)

	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	13	37.1	13	46.4	0	0.0
Remained basically unchanged	22	62.9	15	53.6	7	100.0
Eased somewhat	0	0.0	0	0.0	0	0.0
Eased considerably	0	0.0	0	0.0	0	0.0
Total	35	100.0	28	100.0	7	100.0

For this question, 21 respondents answered “My bank does not make loans or extend credit lines to nonfinancial companies that have operations in the United States and significant exposure to European economies.”

B. Banks headquartered in Europe and their affiliates and subsidiaries (as described in the introduction to these special questions)

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Tightened considerably	5	19.2	5	21.7	0	0.0
Tightened somewhat	10	38.5	10	43.5	0	0.0
Remained basically unchanged	11	42.3	8	34.8	3	100.0
Eased somewhat	0	0.0	0	0.0	0	0.0
Eased considerably	0	0.0	0	0.0	0	0.0
Total	26	100.0	23	100.0	3	100.0

For this question, 30 respondents answered “My bank does not make loans or extend credit lines to banks headquartered in Europe or their affiliates or subsidiaries.”

8. Over the past three months and apart from normal seasonal variation, how has demand for loans at your bank from the following types of firms changed? (Please consider only funds actually disbursed as opposed to requests for new or increased lines of credit.)

A. Nonfinancial companies with operations in the United States and significant exposures to European economies (as described in the introduction to these special questions)

	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	8.6	3	10.7	0	0.0
About the same	29	82.9	22	78.6	7	100.0
Moderately weaker	3	8.6	3	10.7	0	0.0
Substantially weaker	0	0.0	0	0.0	0	0.0
Total	35	100.0	28	100.0	7	100.0

B. Banks headquartered in Europe and their affiliates and subsidiaries (as described in the introduction to these special questions)

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Substantially stronger	1	3.8	1	4.3	0	0.0
Moderately stronger	2	7.7	2	8.7	0	0.0
About the same	21	80.8	18	78.3	3	100.0
Moderately weaker	1	3.8	1	4.3	0	0.0
Substantially weaker	1	3.8	1	4.3	0	0.0
Total	26	100.0	23	100.0	3	100.0

For this question, 30 respondents answered “My bank does not make loans or extend credit lines to banks headquartered in Europe or their affiliates or subsidiaries.”

9. Over the past three months, how has the number of inquiries at your bank regarding the availability and terms of new credit lines or increases in existing lines from the following types of firms changed? (Please consider only inquiries for additional or increased lines as opposed to the refinancing of existing loans.)

A. Nonfinancial companies with operations in the United States and significant exposures to European economies (as described in the introduction to these special questions)

	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	4	11.4	4	14.3	0	0.0
The number of inquiries has stayed about the same	29	82.9	22	78.6	7	100.0
The number of inquiries has decreased moderately	2	5.7	2	7.1	0	0.0
The number of inquiries has decreased substantially	0	0.0	0	0.0	0	0.0
Total	35	100.0	28	100.0	7	100.0

B. Banks headquartered in Europe and their affiliates and subsidiaries (as described in the introduction to these special questions)

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
The number of inquiries has increased substantially	1	4.0	1	4.3	0	0.0
The number of inquiries has increased moderately	2	8.0	2	8.7	0	0.0
The number of inquiries has stayed about the same	20	80.0	18	78.3	2	100.0
The number of inquiries has decreased moderately	1	4.0	1	4.3	0	0.0
The number of inquiries has decreased substantially	1	4.0	1	4.3	0	0.0
Total	25	100.0	23	100.0	2	100.0

For this question, 30 respondents answered “My bank does not make loans or extend credit lines to banks headquartered in Europe or their affiliates or subsidiaries.”

10. Over the past six months, to what extent has your bank experienced an increase in business, with either foreign or domestic customers, as a result of decreased competition from European banks and their affiliates and subsidiaries?

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
My bank has not experienced a decrease in competition from European banks	4	7.3	3	9.1	1	4.5
My bank does not compete with European banks for our business	22	40.0	5	15.2	17	77.3
Such decreased competition has not appreciably increased business	12	21.8	9	27.3	3	13.6
Such decreased competition has increased business to some extent	16	29.1	15	45.5	1	4.5
Such decreased competition has increased business to a considerable extent	1	1.8	1	3.0	0	0.0
Total	55	100.0	33	100.0	22	100.0

For this question, 1 respondent answered “Other (please specify).”

Questions 11-12 ask about commercial real estate (CRE) loans at your bank, including construction and land development loans and loans secured by nonfarm nonresidential real estate. Question 11 deals with changes in your bank's standards over the past three months. Question 12 deals with changes in demand. If your bank's lending standards or terms have not changed over the relevant period, please report them as unchanged even if they are either restrictive or accommodative relative to longer-term norms. If your bank's standards or terms have tightened or eased over the relevant period, please so report them regardless of how they stand relative to longer-term norms. Also, please report changes in enforcement of existing standards as changes in standards.

11. Over the past three months, how have your bank's credit standards for approving applications for CRE 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	4	7.1	3	8.8	1	4.5
Remained basically unchanged	47	83.9	26	76.5	21	95.5
Eased somewhat	4	7.1	4	11.8	0	0.0
Eased considerably	1	1.8	1	2.9	0	0.0
Total	56	100.0	34	100.0	22	100.0

12. Apart from normal seasonal variation, how has demand for CRE 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	22	39.3	16	47.1	6	27.3
About the same	31	55.4	16	47.1	15	68.2
Moderately weaker	3	5.4	2	5.9	1	4.5
Substantially weaker	0	0.0	0	0.0	0	0.0
Total	56	100.0	34	100.0	22	100.0

Question 13 focuses on changes in your bank's policies on CRE loans over the past year. If your bank's lending policies have not changed over the past year, please report them as unchanged even if they are either restrictive or accomodative relative to longer-term norms. If your bank's policies have tightened or eased over the past year, please report these changes regardless of how your bank's policies stand relative to longer-term norms.

13. Over the past year, how has your bank changed the following policies on CRE loans?

a. Maximum loan size

	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	5.4	1	2.9	2	9.1
Remained basically unchanged	41	73.2	24	70.6	17	77.3
Eased somewhat	12	21.4	9	26.5	3	13.6
Eased considerably	0	0.0	0	0.0	0	0.0
Total	56	100.0	34	100.0	22	100.0

b. Maximum loan maturity

	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	7.3	2	5.9	2	9.5
Remained basically unchanged	42	76.4	24	70.6	18	85.7
Eased somewhat	8	14.5	7	20.6	1	4.8
Eased considerably	1	1.8	1	2.9	0	0.0
Total	55	100.0	34	100.0	21	100.0

c. Spread of loan rates over your bank's cost of funds (wider spreads=tightened; narrower spreads=eased)

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Tightened considerably	1	1.8	1	2.9	0	0.0
Tightened somewhat	2	3.6	2	5.9	0	0.0
Remained basically unchanged	26	47.3	13	38.2	13	61.9
Eased somewhat	24	43.6	16	47.1	8	38.1
Eased considerably	2	3.6	2	5.9	0	0.0
Total	55	100.0	34	100.0	21	100.0

d. Loan-to-value ratios

	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	7.3	2	5.9	2	9.5
Remained basically unchanged	49	89.1	30	88.2	19	90.5
Eased somewhat	1	1.8	1	2.9	0	0.0
Eased considerably	1	1.8	1	2.9	0	0.0
Total	55	100.0	34	100.0	21	100.0

e. Requirements for take-out financing

	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	1	1.8	0	0.0	1	4.8
Remained basically unchanged	53	96.4	33	97.1	20	95.2
Eased somewhat	0	0.0	0	0.0	0	0.0
Eased considerably	1	1.8	1	2.9	0	0.0
Total	55	100.0	34	100.0	21	100.0

f. Debt-service coverage ratios

	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	5.4	2	5.9	1	4.5
Remained basically unchanged	51	91.1	30	88.2	21	95.5
Eased somewhat	1	1.8	1	2.9	0	0.0
Eased considerably	1	1.8	1	2.9	0	0.0
Total	56	100.0	34	100.0	22	100.0

Questions 14-15 ask about three categories of residential mortgage loans at your bank—prime residential mortgages, nontraditional residential mortgages, and subprime residential mortgages. Question 14 deals with changes in your bank's credit standards for loans in each of these categories over the past three months. Question 15 deals with changes in demand for loans in each of these categories over the same period. If your bank's credit standards have not changed over the relevant period, please report them as unchanged even if the standards are either restrictive or accommodative relative to longer-term norms. If your bank's credit standards have tightened or eased over the relevant period, please so report them regardless of how they stand relative to longer-term norms. Also, please report changes in enforcement of existing standards as changes in standards.
For the purposes of this survey, please use the following definitions of these loan categories (note that the loan categories are not mutually exclusive) and include first-lien loans only:

The prime category of residential mortgages includes loans made to borrowers that typically had relatively strong, well-documented credit histories, relatively high credit scores, and relatively low debt-to-income ratios at the time of origination. This would include fully amortizing loans that have a fixed rate, a standard adjustable rate, or a common hybrid adjustable rate—those for which the interest rate is initially fixed for a multi-year period and subsequently adjusts more frequently.

The nontraditional category of residential mortgages includes, but is 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. (Please exclude standard adjustable-rate mortgages and common hybrid adjustable-rate mortgages.)

The subprime category of residential mortgages typically includes loans made to borrowers that displayed one or more of the following characteristics at the time of origination: weakened credit histories that include payment delinquencies, chargeoffs, judgments, and/or bankruptcies; reduced repayment capacity as measured by credit scores or debt-to-income ratios; or incomplete credit histories.

14. Over the past three months, how have your bank's credit standards for approving applications from individuals for mortgage loans to purchase homes changed?

A. Credit standards on mortgage loans that your bank categorizes as prime residential mortgages have:

	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	0	0.0	0	0.0	0	0.0
Remained basically unchanged	50	94.3	31	93.9	19	95.0
Eased somewhat	3	5.7	2	6.1	1	5.0
Eased considerably	0	0.0	0	0.0	0	0.0
Total	53	100.0	33	100.0	20	100.0

For this question, 1 respondent answered “My bank does not originate prime residential mortgages.”

B. Credit standards on mortgage loans that your bank categorizes as nontraditional residential mortgages have:

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Tightened considerably	1	4.3	1	5.3	0	0.0
Tightened somewhat	1	4.3	1	5.3	0	0.0
Remained basically unchanged	20	87.0	16	84.2	4	100.0
Eased somewhat	1	4.3	1	5.3	0	0.0
Eased considerably	0	0.0	0	0.0	0	0.0
Total	23	100.0	19	100.0	4	100.0

For this question, 31 respondents answered “My bank does not originate nontraditional residential mortgages.”

C. Credit standards on mortgage loans that your bank categorizes as subprime residential mortgages have:

Responses are not reported when the number of respondents is 3 or fewer.

15. 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.)

A. Demand for mortgages that your bank categorizes as prime residential mortgages was:

	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	20.8	9	27.3	2	10.0
About the same	33	62.3	18	54.5	15	75.0
Moderately weaker	9	17.0	6	18.2	3	15.0
Substantially weaker	0	0.0	0	0.0	0	0.0
Total	53	100.0	33	100.0	20	100.0

For this question, 1 respondent answered “My bank does not originate prime residential mortgages.”

B. Demand for mortgages that your bank categorizes as nontraditional residential mortgages was:

	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	13.0	3	15.8	0	0.0
About the same	16	69.6	12	63.2	4	100.0
Moderately weaker	3	13.0	3	15.8	0	0.0
Substantially weaker	1	4.3	1	5.3	0	0.0
Total	23	100.0	19	100.0	4	100.0

For this question, 31 respondents answered “My bank does not originate nontraditional residential mortgages.”

C. Demand for mortgages that your bank categorizes as subprime residential mortgages was:

Responses are not reported when the number of respondents is 3 or fewer.

Questions 16-17 ask about revolving home equity lines of credit at your bank. Question 16 deals with changes in your bank's credit standards over the past three months. Question 17 deals with changes in demand. If your bank's credit standards have not changed over the relevant period, please report them as unchanged even if they are either restrictive or accommodative relative to longer-term norms. If your bank's credit standards have tightened or eased over the relevant period, please so report them regardless of how they stand relative to longer-term norms. Also, please report changes in enforcement of existing standards as changes in standards.

16. Over the past three months, how have your bank's credit standards for approving applications for revolving home equity lines of credit 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	6.1	1	4.5
Remained basically unchanged	49	89.1	28	84.8	21	95.5
Eased somewhat	3	5.5	3	9.1	0	0.0
Eased considerably	0	0.0	0	0.0	0	0.0
Total	55	100.0	33	100.0	22	100.0

17. Apart from normal seasonal variation, how has demand for revolving home equity lines of credit changed over the past three months? (Please consider only funds actually disbursed as opposed to requests for new or increased lines of credit.)

	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	5.5	1	3.0	2	9.1
About the same	39	70.9	25	75.8	14	63.6
Moderately weaker	13	23.6	7	21.2	6	27.3
Substantially weaker	0	0.0	0	0.0	0	0.0
Total	55	100.0	33	100.0	22	100.0

Questions 18-27 ask about consumer lending at your bank. Question 18 deals with changes in your bank's willingness to make consumer loans over the past three months. Questions 19-24 deal with changes in credit standards and loan terms over the same period. Questions 25-27deal with changes in demand for consumer loans over the past three months. If your bank's lending policies have not changed over the past three months, please report them as unchanged even if the policies are either restrictive or accommodative relative to longer-term norms. If your bank's policies have tightened or eased over the past three months, please so report them regardless of how they stand relative to longer-term norms. Also, please report changes in enforcement of existing policies as changes in policies.

18. 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	1	1.9	1	3.3	0	0.0
Somewhat more willing	5	9.6	2	6.7	3	13.6
About unchanged	46	88.5	27	90.0	19	86.4
Somewhat less willing	0	0.0	0	0.0	0	0.0
Much less willing	0	0.0	0	0.0	0	0.0
Total	52	100.0	30	100.0	22	100.0

19. 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	1	2.3	1	3.7	0	0.0
Remained basically unchanged	36	83.7	20	74.1	16	100.0
Eased somewhat	6	14.0	6	22.2	0	0.0
Eased considerably	0	0.0	0	0.0	0	0.0
Total	43	100.0	27	100.0	16	100.0

20. Over the past three months, how have your bank's credit standards for approving applications for auto loans to individuals or households changed? (Please include loans arising from retail sales of passenger cars and other vehicles such as minivans, vans, sport-utility vehicles, pickup trucks, and similar light trucks for personal use, whether new or used. Please exclude loans to finance fleet sales, personal cash loans secured by automobiles already paid for, loans to finance the purchase of commercial vehicles and farm equipment, and lease financing.)

	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	0	0.0	0	0.0	0	0.0
Remained basically unchanged	43	86.0	23	82.1	20	90.9
Eased somewhat	7	14.0	5	17.9	2	9.1
Eased considerably	0	0.0	0	0.0	0	0.0
Total	50	100.0	28	100.0	22	100.0

21. Over the past three months, how have your bank's credit standards for approving applications for consumer loans other than credit card and auto 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	0	0.0	0	0.0	0	0.0
Remained basically unchanged	48	90.6	26	83.9	22	100.0
Eased somewhat	5	9.4	5	16.1	0	0.0
Eased considerably	0	0.0	0	0.0	0	0.0
Total	53	100.0	31	100.0	22	100.0

22. 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?

a. Credit limits

	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	5.4	2	8.3	0	0.0
Remained basically unchanged	32	86.5	19	79.2	13	100.0
Eased somewhat	3	8.1	3	12.5	0	0.0
Eased considerably	0	0.0	0	0.0	0	0.0
Total	37	100.0	24	100.0	13	100.0

b. Spreads of interest rates charged on outstanding balances over your bank's cost of funds (wider spreads=tightened, narrower spreads=eased)

	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	5.4	2	8.3	0	0.0
Remained basically unchanged	34	91.9	21	87.5	13	100.0
Eased somewhat	1	2.7	1	4.2	0	0.0
Eased considerably	0	0.0	0	0.0	0	0.0
Total	37	100.0	24	100.0	13	100.0

c. Minimum percent of outstanding balances required to be repaid each month

	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	1	2.7	1	4.2	0	0.0
Remained basically unchanged	35	94.6	23	95.8	12	92.3
Eased somewhat	0	0.0	0	0.0	0	0.0
Eased considerably	1	2.7	0	0.0	1	7.7
Total	37	100.0	24	100.0	13	100.0

d. Minimum required credit score (increased score=tightened, reduced score=eased)

	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	0	0.0	0	0.0	0	0.0
Remained basically unchanged	35	94.6	22	91.7	13	100.0
Eased somewhat	2	5.4	2	8.3	0	0.0
Eased considerably	0	0.0	0	0.0	0	0.0
Total	37	100.0	24	100.0	13	100.0

e. The extent to which loans are granted to some customers that do not meet credit scoring thresholds (increased=eased, decreased=tightened)

	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	0	0.0	0	0.0	0	0.0
Remained basically unchanged	36	97.3	23	95.8	13	100.0
Eased somewhat	1	2.7	1	4.2	0	0.0
Eased considerably	0	0.0	0	0.0	0	0.0
Total	37	100.0	24	100.0	13	100.0

23. Over the past three months, how has your bank changed the following terms and conditions on loans to individuals or households to purchase autos?

a. Maximum maturity

	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	0	0.0	0	0.0	0	0.0
Remained basically unchanged	44	89.8	25	89.3	19	90.5
Eased somewhat	5	10.2	3	10.7	2	9.5
Eased considerably	0	0.0	0	0.0	0	0.0
Total	49	100.0	28	100.0	21	100.0

b. Spreads of loan rates over your bank's cost of funds (wider spreads=tightened, narrower spreads=eased)

	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	1	2.0	1	3.6	0	0.0
Remained basically unchanged	36	73.5	20	71.4	16	76.2
Eased somewhat	12	24.5	7	25.0	5	23.8
Eased considerably	0	0.0	0	0.0	0	0.0
Total	49	100.0	28	100.0	21	100.0

c. Minimum required down payment (higher=tightened, lower=eased)

	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	0	0.0	0	0.0	0	0.0
Remained basically unchanged	46	93.9	26	92.9	20	95.2
Eased somewhat	3	6.1	2	7.1	1	4.8
Eased considerably	0	0.0	0	0.0	0	0.0
Total	49	100.0	28	100.0	21	100.0

d. Minimum required credit score (increased score=tightened, reduced score=eased)

	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	0	0.0	0	0.0	0	0.0
Remained basically unchanged	48	98.0	27	96.4	21	100.0
Eased somewhat	1	2.0	1	3.6	0	0.0
Eased considerably	0	0.0	0	0.0	0	0.0
Total	49	100.0	28	100.0	21	100.0

e. The extent to which loans are granted to some customers that do not meet credit scoring thresholds (increased=eased, decreased=tightened)

	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	0	0.0	0	0.0	0	0.0
Remained basically unchanged	45	93.8	24	88.9	21	100.0
Eased somewhat	3	6.3	3	11.1	0	0.0
Eased considerably	0	0.0	0	0.0	0	0.0
Total	48	100.0	27	100.0	21	100.0

24. Over the past three months, how has your bank changed the following terms and conditions on consumer loans other than credit card and auto loans?

a. Maximum maturity

	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	0	0.0	0	0.0	0	0.0
Remained basically unchanged	50	98.0	30	96.8	20	100.0
Eased somewhat	1	2.0	1	3.2	0	0.0
Eased considerably	0	0.0	0	0.0	0	0.0
Total	51	100.0	31	100.0	20	100.0

b. Spreads of loan rates over your bank's cost of funds (wider spreads=tightened, narrower spreads=eased)

	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	3.9	1	3.2	1	5.0
Remained basically unchanged	43	84.3	26	83.9	17	85.0
Eased somewhat	6	11.8	4	12.9	2	10.0
Eased considerably	0	0.0	0	0.0	0	0.0
Total	51	100.0	31	100.0	20	100.0

c. Minimum required down payment (higher=tightened, lower=eased)

	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	0	0.0	0	0.0	0	0.0
Remained basically unchanged	48	94.1	28	90.3	20	100.0
Eased somewhat	3	5.9	3	9.7	0	0.0
Eased considerably	0	0.0	0	0.0	0	0.0
Total	51	100.0	31	100.0	20	100.0

d. Minimum required credit score (increased score=tightened, reduced score=eased)

	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	0	0.0	0	0.0	0	0.0
Remained basically unchanged	50	98.0	30	96.8	20	100.0
Eased somewhat	1	2.0	1	3.2	0	0.0
Eased considerably	0	0.0	0	0.0	0	0.0
Total	51	100.0	31	100.0	20	100.0

e. The extent to which loans are granted to some customers that do not meet credit scoring thresholds (increased=eased, decreased=tightened)

	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	0	0.0	0	0.0	0	0.0
Remained basically unchanged	49	96.1	29	93.5	20	100.0
Eased somewhat	2	3.9	2	6.5	0	0.0
Eased considerably	0	0.0	0	0.0	0	0.0
Total	51	100.0	31	100.0	20	100.0

25. Apart from normal seasonal variation, how has demand from individuals or households for credit card 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	5	13.5	3	12.5	2	15.4
About the same	30	81.1	19	79.2	11	84.6
Moderately weaker	2	5.4	2	8.3	0	0.0
Substantially weaker	0	0.0	0	0.0	0	0.0
Total	37	100.0	24	100.0	13	100.0

26. Apart from normal seasonal variation, how has demand from individuals or households for auto 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	13	26.5	9	32.1	4	19.0
About the same	30	61.2	16	57.1	14	66.7
Moderately weaker	6	12.2	3	10.7	3	14.3
Substantially weaker	0	0.0	0	0.0	0	0.0
Total	49	100.0	28	100.0	21	100.0

27. Apart from normal seasonal variation, how has demand from individuals or households for consumer loans other than credit card and auto 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	4	7.7	1	3.2	3	14.3
About the same	43	82.7	27	87.1	16	76.2
Moderately weaker	5	9.6	3	9.7	2	9.5
Substantially weaker	0	0.0	0	0.0	0	0.0
Total	52	100.0	31	100.0	21	100.0

In recent quarters, loan delinquencies and charge-offs have improved by varying degrees depending on loan class. Questions 28-30 ask about your bank's expectations for the behavior of these measures of loan quality in 2012. Question 28 asks about C&I loans to large and middle-market firms and to small firms. Question 29 asks about CRE loans, and question 30 asks about loans to households.

28. Assuming that economic activity progresses in line with consensus forecasts, what is your outlook for delinquencies and chargeoffs on your bank's C&I loans to large and middle-market firms and to small firms in 2012?

A. Outlook for loan quality on C&I loans to large and middle-market firms:

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Loan quality is likely to improve substantially	1	1.8	0	0.0	1	4.5
Loan quality is likely to improve somewhat	32	58.2	19	57.6	13	59.1
Loan quality is likely to stabilize around current levels	20	36.4	12	36.4	8	36.4
Loan quality is likely to deteriorate somewhat	2	3.6	2	6.1	0	0.0
Loan quality is likely to deteriorate substantially	0	0.0	0	0.0	0	0.0
Total	55	100.0	33	100.0	22	100.0

B. Outlook for loan quality on C&I loans to small firms:

	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	29	54.7	15	48.4	14	63.6
Loan quality is likely to stabilize around current levels	21	39.6	13	41.9	8	36.4
Loan quality is likely to deteriorate somewhat	3	5.7	3	9.7	0	0.0
Loan quality is likely to deteriorate substantially	0	0.0	0	0.0	0	0.0
Total	53	100.0	31	100.0	22	100.0

For this question, 1 respondent answered “My bank does not originate this type of loan.”

29. Assuming that economic activity progresses in line with consensus forecasts, what is your outlook for delinquencies and chargeoffs on your bank's CRE loans in 2012?

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Loan quality is likely to improve substantially	1	1.8	1	3.0	0	0.0
Loan quality is likely to improve somewhat	31	56.4	20	60.6	11	50.0
Loan quality is likely to stabilize around current levels	23	41.8	12	36.4	11	50.0
Loan quality is likely to deteriorate somewhat	0	0.0	0	0.0	0	0.0
Loan quality is likely to deteriorate substantially	0	0.0	0	0.0	0	0.0
Total	55	100.0	33	100.0	22	100.0

30. 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 2012?

A. Outlook for loan quality on prime 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	23	44.2	17	53.1	6	30.0
Loan quality is likely to stabilize around current levels	27	51.9	13	40.6	14	70.0
Loan quality is likely to deteriorate somewhat	2	3.8	2	6.3	0	0.0
Loan quality is likely to deteriorate substantially	0	0.0	0	0.0	0	0.0
Total	52	100.0	32	100.0	20	100.0

For this question, 1 respondent answered “My bank does not originate this type of loan.”

B. 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	13	59.1	11	61.1	2	50.0
Loan quality is likely to stabilize around current levels	8	36.4	6	33.3	2	50.0
Loan quality is likely to deteriorate somewhat	1	4.5	1	5.6	0	0.0
Loan quality is likely to deteriorate substantially	0	0.0	0	0.0	0	0.0
Total	22	100.0	18	100.0	4	100.0

For this question, 31 respondents answered “My bank does not originate this type of loan.”

C. Outlook for loan quality on subprime 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	.
Loan quality is likely to improve somewhat	2	50.0	2	50.0	0	.
Loan quality is likely to stabilize around current levels	1	25.0	1	25.0	0	.
Loan quality is likely to deteriorate somewhat	1	25.0	1	25.0	0	.
Loan quality is likely to deteriorate substantially	0	0.0	0	0.0	0	.
Total	4	100.0	4	100.0	0	.

For this question, 49 respondents answered “My bank does not originate this type of loan.”

D. Outlook for loan quality on revolving home equity lines of credit:

	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	21	38.9	15	46.9	6	27.3
Loan quality is likely to stabilize around current levels	30	55.6	14	43.8	16	72.7
Loan quality is likely to deteriorate somewhat	3	5.6	3	9.4	0	0.0
Loan quality is likely to deteriorate substantially	0	0.0	0	0.0	0	0.0
Total	54	100.0	32	100.0	22	100.0

E. 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	8	21.6	5	20.8	3	23.1
Loan quality is likely to stabilize around current levels	27	73.0	18	75.0	9	69.2
Loan quality is likely to deteriorate somewhat	2	5.4	1	4.2	1	7.7
Loan quality is likely to deteriorate substantially	0	0.0	0	0.0	0	0.0
Total	37	100.0	24	100.0	13	100.0

For this question, 13 respondents answered “My bank does not originate this type of loan.”

F. 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	13	25.5	6	20.0	7	33.3
Loan quality is likely to stabilize around current levels	35	68.6	21	70.0	14	66.7
Loan quality is likely to deteriorate somewhat	3	5.9	3	10.0	0	0.0
Loan quality is likely to deteriorate substantially	0	0.0	0	0.0	0	0.0
Total	51	100.0	30	100.0	21	100.0

For this question, 3 respondents answered “My bank does not originate this type of loan.”

1. The sample is selected from among the largest banks in each Federal Reserve District. In the table, large banks are defined as those with total domestic assets of $20 billion or more as of September 30, 2011. The combined assets of the 34 large banks totaled $7.2 trillion, compared to $7.5 trillion for the entire panel of 56 banks, and $10.9 trillion for all domestically chartered, federally insured commercial banks.

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Senior Loan Officer Opinion Survey on Bank Lending PracticesJanuary 2012

Table 1

Senior Loan Officer Opinion Survey on Bank Lending Practices at Selected Large Banks in the United States 1

(Status of policy as of January 2012)

Senior Loan Officer Opinion Survey on Bank Lending Practices
January 2012

Senior Loan Officer Opinion Survey on Bank Lending Practices
at Selected Large Banks in the United States ¹