Senior Loan Officer Opinion Survey on Bank Lending Practices
January 2014

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 2014)

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	0	0.0	0	0.0	0	0.0
Remained basically unchanged	63	86.3	34	85.0	29	87.9
Eased somewhat	10	13.7	6	15.0	4	12.1
Eased considerably	0	0.0	0	0.0	0	0.0
Total	73	100.0	40	100.0	33	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	1	1.4	0	0.0	1	2.9
Remained basically unchanged	67	93.1	36	97.3	31	88.6
Eased somewhat	4	5.6	1	2.7	3	8.6
Eased considerably	0	0.0	0	0.0	0	0.0
Total	72	100.0	37	100.0	35	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	1	1.4	1	2.5	0	0.0
Remained basically unchanged	57	79.2	28	70.0	29	90.6
Eased somewhat	14	19.4	11	27.5	3	9.4
Eased considerably	0	0.0	0	0.0	0	0.0
Total	72	100.0	40	100.0	32	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	0	0.0	0	0.0	0	0.0
Remained basically unchanged	63	87.5	34	85.0	29	90.6
Eased somewhat	9	12.5	6	15.0	3	9.4
Eased considerably	0	0.0	0	0.0	0	0.0
Total	72	100.0	40	100.0	32	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	52	72.2	25	62.5	27	84.4
Eased somewhat	20	27.8	15	37.5	5	15.6
Eased considerably	0	0.0	0	0.0	0	0.0
Total	72	100.0	40	100.0	32	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	2	2.8	0	0.0	2	6.3
Remained basically unchanged	26	36.1	13	32.5	13	40.6
Eased somewhat	44	61.1	27	67.5	17	53.1
Eased considerably	0	0.0	0	0.0	0	0.0
Total	72	100.0	40	100.0	32	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	3	4.2	0	0.0	3	9.4
Remained basically unchanged	58	80.6	32	80.0	26	81.3
Eased somewhat	10	13.9	7	17.5	3	9.4
Eased considerably	1	1.4	1	2.5	0	0.0
Total	72	100.0	40	100.0	32	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	1	1.4	0	0.0	1	3.1
Remained basically unchanged	51	70.8	26	65.0	25	78.1
Eased somewhat	19	26.4	13	32.5	6	18.8
Eased considerably	1	1.4	1	2.5	0	0.0
Total	72	100.0	40	100.0	32	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	0	0.0	0	0.0	0	0.0
Remained basically unchanged	66	91.7	37	92.5	29	90.6
Eased somewhat	6	8.3	3	7.5	3	9.4
Eased considerably	0	0.0	0	0.0	0	0.0
Total	72	100.0	40	100.0	32	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	1	1.4	0	0.0	1	3.1
Remained basically unchanged	46	64.8	26	66.7	20	62.5
Eased somewhat	19	26.8	10	25.6	9	28.1
Eased considerably	5	7.0	3	7.7	2	6.3
Total	71	100.0	39	100.0	32	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	0	0.0	0	0.0	0	0.0
Remained basically unchanged	62	88.6	30	83.3	32	94.1
Eased somewhat	8	11.4	6	16.7	2	5.9
Eased considerably	0	0.0	0	0.0	0	0.0
Total	70	100.0	36	100.0	34	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	1.4	0	0.0	1	2.9
Remained basically unchanged	61	87.1	30	83.3	31	91.2
Eased somewhat	8	11.4	6	16.7	2	5.9
Eased considerably	0	0.0	0	0.0	0	0.0
Total	70	100.0	36	100.0	34	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	52	74.3	24	66.7	28	82.4
Eased somewhat	18	25.7	12	33.3	6	17.6
Eased considerably	0	0.0	0	0.0	0	0.0
Total	70	100.0	36	100.0	34	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	2	2.9	0	0.0	2	5.9
Remained basically unchanged	30	42.9	13	36.1	17	50.0
Eased somewhat	38	54.3	23	63.9	15	44.1
Eased considerably	0	0.0	0	0.0	0	0.0
Total	70	100.0	36	100.0	34	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	3	4.3	0	0.0	3	8.8
Remained basically unchanged	61	87.1	33	91.7	28	82.4
Eased somewhat	6	8.6	3	8.3	3	8.8
Eased considerably	0	0.0	0	0.0	0	0.0
Total	70	100.0	36	100.0	34	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	2	2.9	0	0.0	2	5.9
Remained basically unchanged	52	74.3	25	69.4	27	79.4
Eased somewhat	16	22.9	11	30.6	5	14.7
Eased considerably	0	0.0	0	0.0	0	0.0
Total	70	100.0	36	100.0	34	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	2.9	0	0.0	2	5.9
Remained basically unchanged	63	90.0	33	91.7	30	88.2
Eased somewhat	5	7.1	3	8.3	2	5.9
Eased considerably	0	0.0	0	0.0	0	0.0
Total	70	100.0	36	100.0	34	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	1	1.5	0	0.0	1	2.9
Remained basically unchanged	46	67.6	23	67.6	23	67.6
Eased somewhat	18	26.5	9	26.5	9	26.5
Eased considerably	3	4.4	2	5.9	1	2.9
Total	68	100.0	34	100.0	34	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	100.0	1	100.0	5	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	6	100.0	1	100.0	5	100.0

b. Less favorable or more uncertain economic outlook

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Not important	4	66.7	1	100.0	3	60.0
Somewhat important	2	33.3	0	0.0	2	40.0
Very important	0	0.0	0	0.0	0	0.0
Total	6	100.0	1	100.0	5	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	5	83.3	0	0.0	5	100.0
Somewhat important	0	0.0	0	0.0	0	0.0
Very important	1	16.7	1	100.0	0	0.0
Total	6	100.0	1	100.0	5	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	100.0	1	100.0	5	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	6	100.0	1	100.0	5	100.0

e. Reduced tolerance for risk

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Not important	1	16.7	1	100.0	0	0.0
Somewhat important	4	66.7	0	0.0	4	80.0
Very important	1	16.7	0	0.0	1	20.0
Total	6	100.0	1	100.0	5	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	100.0	1	100.0	5	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	6	100.0	1	100.0	5	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	6	100.0	1	100.0	5	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	6	100.0	1	100.0	5	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	50.0	1	100.0	2	40.0
Somewhat important	1	16.7	0	0.0	1	20.0
Very important	2	33.3	0	0.0	2	40.0
Total	6	100.0	1	100.0	5	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	42	87.5	25	86.2	17	89.5
Somewhat important	5	10.4	4	13.8	1	5.3
Very important	1	2.1	0	0.0	1	5.3
Total	48	100.0	29	100.0	19	100.0

b. More favorable or less uncertain economic outlook

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Not important	23	46.9	12	40.0	11	57.9
Somewhat important	22	44.9	17	56.7	5	26.3
Very important	4	8.2	1	3.3	3	15.8
Total	49	100.0	30	100.0	19	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	40	81.6	26	86.7	14	73.7
Somewhat important	7	14.3	3	10.0	4	21.1
Very important	2	4.1	1	3.3	1	5.3
Total	49	100.0	30	100.0	19	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	2	4.1	1	3.3	1	5.3
Somewhat important	14	28.6	7	23.3	7	36.8
Very important	33	67.3	22	73.3	11	57.9
Total	49	100.0	30	100.0	19	100.0

e. Increased tolerance for risk

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Not important	36	73.5	22	73.3	14	73.7
Somewhat important	11	22.4	8	26.7	3	15.8
Very important	2	4.1	0	0.0	2	10.5
Total	49	100.0	30	100.0	19	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	41	83.7	25	83.3	16	84.2
Somewhat important	6	12.2	4	13.3	2	10.5
Very important	2	4.1	1	3.3	1	5.3
Total	49	100.0	30	100.0	19	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	46	93.9	29	96.7	17	89.5
Somewhat important	2	4.1	1	3.3	1	5.3
Very important	1	2.0	0	0.0	1	5.3
Total	49	100.0	30	100.0	19	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	45	93.8	29	96.7	16	88.9
Somewhat important	2	4.2	1	3.3	1	5.6
Very important	1	2.1	0	0.0	1	5.6
Total	48	100.0	30	100.0	18	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	0	0.0	0	0.0	0	0.0
Moderately stronger	17	23.3	9	22.5	8	24.2
About the same	51	69.9	27	67.5	24	72.7
Moderately weaker	5	6.8	4	10.0	1	3.0
Substantially weaker	0	0.0	0	0.0	0	0.0
Total	73	100.0	40	100.0	33	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	19.7	5	13.9	9	25.7
About the same	53	74.6	29	80.6	24	68.6
Moderately weaker	4	5.6	2	5.6	2	5.7
Substantially weaker	0	0.0	0	0.0	0	0.0
Total	71	100.0	36	100.0	35	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	8	40.0	5	45.5	3	33.3
Somewhat important	11	55.0	6	54.5	5	55.6
Very important	1	5.0	0	0.0	1	11.1
Total	20	100.0	11	100.0	9	100.0

b. Customer accounts receivable financing needs increased

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Not important	8	40.0	6	54.5	2	22.2
Somewhat important	11	55.0	5	45.5	6	66.7
Very important	1	5.0	0	0.0	1	11.1
Total	20	100.0	11	100.0	9	100.0

c. Customer investment in plant or equipment increased

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Not important	5	23.8	4	36.4	1	10.0
Somewhat important	15	71.4	7	63.6	8	80.0
Very important	1	4.8	0	0.0	1	10.0
Total	21	100.0	11	100.0	10	100.0

d. Customer internally generated funds decreased

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Not important	17	85.0	8	72.7	9	100.0
Somewhat important	3	15.0	3	27.3	0	0.0
Very important	0	0.0	0	0.0	0	0.0
Total	20	100.0	11	100.0	9	100.0

e. Customer merger or acquisition financing needs increased

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Not important	9	45.0	4	36.4	5	55.6
Somewhat important	9	45.0	6	54.5	3	33.3
Very important	2	10.0	1	9.1	1	11.1
Total	20	100.0	11	100.0	9	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	7	63.6	3	33.3
Somewhat important	8	40.0	3	27.3	5	55.6
Very important	2	10.0	1	9.1	1	11.1
Total	20	100.0	11	100.0	9	100.0

g. Customers' precautionary demand for cash and liquidity increased

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Not important	17	85.0	9	81.8	8	88.9
Somewhat important	3	15.0	2	18.2	1	11.1
Very important	0	0.0	0	0.0	0	0.0
Total	20	100.0	11	100.0	9	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	50.0	3	75.0	0	0.0
Somewhat important	3	50.0	1	25.0	2	100.0
Very important	0	0.0	0	0.0	0	0.0
Total	6	100.0	4	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	4	66.7	4	100.0	0	0.0
Somewhat important	2	33.3	0	0.0	2	100.0
Very important	0	0.0	0	0.0	0	0.0
Total	6	100.0	4	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	16.7	1	25.0	0	0.0
Somewhat important	5	83.3	3	75.0	2	100.0
Very important	0	0.0	0	0.0	0	0.0
Total	6	100.0	4	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	3	50.0	2	50.0	1	50.0
Very important	1	16.7	1	25.0	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	33.3	1	25.0	1	50.0
Somewhat important	2	33.3	1	25.0	1	50.0
Very important	2	33.3	2	50.0	0	0.0
Total	6	100.0	4	100.0	2	100.0

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

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Not important	6	100.0	4	100.0	2	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	6	100.0	4	100.0	2	100.0

g. Customers’ precautionary demand for cash and liquidity decreased

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
Not important	4	66.7	2	50.0	2	100.0
Somewhat important	1	16.7	1	25.0	0	0.0
Very important	1	16.7	1	25.0	0	0.0
Total	6	100.0	4	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	0	0.0	0	0.0	0	0.0
The number of inquiries has increased moderately	18	24.0	8	20.0	10	28.6
The number of inquiries has stayed about the same	51	68.0	29	72.5	22	62.9
The number of inquiries has decreased moderately	6	8.0	3	7.5	3	8.6
The number of inquiries has decreased substantially	0	0.0	0	0.0	0	0.0
Total	75	100.0	40	100.0	35	100.0

On March 21, 2013, federal bank regulators released interagency guidance outlining high-level principles related to safe-and-sound leveraged lending activities (letter SR 13-3).² The guidance applies to all financial institutions supervised by the Federal Reserve that engage in leveraged lending activities, and became effective on May 21, 2013. Please answer the following questions in light of the supervisory guidance. Question 7 asks what percentage of C&I loans currently on your bank's books you currently consider leveraged. Question 8 asks how your bank has changed its lending policies for leveraged loans generally in anticipation of, or as a result of, the release of the supervisory guidance. Question 9 asks about the fraction of leveraged lending that is subject to the supervisory guidance. Question 10 asks about how your bank’s underwriting or purchases of participations in various categories of leveraged lending have been affected by the supervisory guidance. Question 11 asks about your assessment of the likelihood of various possibilities for firms which otherwise would have borrowed from your bank.

7. Approximately what percentage of C&I loans currently on your bank's books do you consider to be leveraged loans? (Please report the approximate share of total C&I loans that you currently consider to be leveraged regardless of whether they have been or are potentially affected by the supervisory guidance).

	All Respondents		Large Banks		Other Banks
	Banks	Percent	Banks	Percent	Banks	Percent
More than 0 percent and less than 5 percent	32	51.6	13	33.3	19	82.6
More than 5 percent and less than 10 percent	23	37.1	19	48.7	4	17.4
More than 10 percent and less than 20 percent	6	9.7	6	15.4	0	0.0
More than 20 percent and less than 35 percent	1	1.6	1	2.6	0	0.0
More than 35 percent and less than 60 percent	0	0.0	0	0.0	0	0.0
More than 60 percent	0	0.0	0	0.0	0	0.0
Total	62	100.0	39	100.0	23	100.0

For this question, 13 respondents answered “My bank does not currently have any C&I loans that it considers to be leveraged loans on its books.”

8. How has your bank changed its lending policies for leveraged loans generally —that is, for all leveraged loans—in anticipation of or as a result of the release of the supervisory guidance?

a. Credit standards

	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	15	25.9	11	28.9	4	20.0
Remained basically unchanged	43	74.1	27	71.1	16	80.0
Eased somewhat	0	0.0	0	0.0	0	0.0
Eased considerably	0	0.0	0	0.0	0	0.0
Total	58	100.0	38	100.0	20	100.0