Board of Governors of the Federal Reserve System

2. For applications for C&I loans or credit lines—other than those to be used to finance mergers and acquisitions—that your bank currently is willing to approve, how have the terms of those loans changed over the past three months?

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

b. Less favorable or more uncertain economic outlook

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

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

e. Reduced tolerance for risk

f. Decreased liquidity in the secondary market for these loans

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

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

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

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 4), possible reasons:

a. Customer inventory financing needs increased

b. Customer accounts receivable financing needs increased

c. Customer investment in plant or equipment increased

d. Customer internally generated funds decreased

e. Customer merger or acquisition financing needs increased

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

g. Customer precautionary demand for cash and liquidity increased

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

a. Customer inventory financing needs decreased

b. Customer accounts receivable financing needs decreased

c. Customer investment in plant or equipment decreased

d. Customer internally generated funds increased

e. Customer merger or acquisition financing needs decreased

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

g. Customer precautionary demand for cash and liquidity decreased

9. Over the past year, how has your bank changed the following policies on construction and land development loans? (Please assign each policy 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.)

10. Over the past year, how has your bank changed the following policies on loans secured by nonfarm-nonresidential properties? (Please assign each policy 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.)

11. Over the past year, how has your bank changed the following policies on loans secured by multifamily residential properties? (Please assign each policy 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.)

12. If your bank has tightened or eased its credit policies for CRE loans over the past year (as described in questions 9-11 above), 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 policies on CRE loans over the past year (where tightening corresponds to answers 1 or 2 in questions 9-11 above):

a. Less favorable or more uncertain outlook for CRE property prices

b. Less favorable or more uncertain outlook for vacancy rates or other fundamentals on CRE properties

c. Less favorable or more uncertain capitalization rates (the ratio of current net operating income to the original sale price or current market value) on CRE properties

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

e. Reduced tolerance for risk

f. Decreased ability to securitize CRE loans

g. Increased concerns about my bank's capital adequacy or liquidity position

h. Increased concerns about the effects of regulatory changes or supervisory actions

B. Possible reasons for easing credit policies on CRE loans over the past year (where easing corresponds to answers 4 or 5 in questions 9-11 above):

a. More favorable or less uncertain outlook for CRE property prices

b. More favorable or less uncertain outlook for vacancy rates or other fundamentals on CRE properties

c. More favorable or less uncertain capitalization rates (the ratio of current net operating income to the original sale price or current market value) on CRE properties

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

e. Increased tolerance for risk

f. Increased ability to securitize CRE loans

g. Reduced concerns about my bank's capital adequacy or liquidity position

h. Reduced concerns about the effects of regulatory changes or supervisory actions