Senior Loan Officer Opinion Survey on Bank Lending Practices
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Senior Loan Officer Opinion Survey on Bank Lending Practices at Selected Large Banks in the United States 1
(Status of Policy as of October 2018)
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 | 4.3 | 2 | 4.3 | 1 | 4.3 |
Remained basically unchanged | 52 | 75.4 | 34 | 73.9 | 18 | 78.3 |
Eased somewhat | 14 | 20.3 | 10 | 21.7 | 4 | 17.4 |
Eased considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 69 | 100 | 46 | 100 | 23 | 100 |
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 | 1 | 1.5 | 1 | 2.4 | 0 | 0.0 |
Tightened somewhat | 4 | 6.2 | 1 | 2.4 | 3 | 13.0 |
Remained basically unchanged | 53 | 81.5 | 35 | 83.3 | 18 | 78.3 |
Eased somewhat | 7 | 10.8 | 5 | 11.9 | 2 | 8.7 |
Eased considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 65 | 100 | 42 | 100 | 23 | 100 |
For this question, 2 respondents answered "My bank does not originate C&I loans or credit lines to small firms."
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 | 1.5 | 1 | 2.2 | 0 | 0.0 |
Remained basically unchanged | 54 | 79.4 | 32 | 69.6 | 22 | 100.0 |
Eased somewhat | 13 | 19.1 | 13 | 28.3 | 0 | 0.0 |
Eased considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 68 | 100 | 46 | 100 | 22 | 100 |
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 | 2 | 3.0 | 1 | 2.2 | 1 | 4.5 |
Remained basically unchanged | 63 | 94.0 | 43 | 95.6 | 20 | 90.9 |
Eased somewhat | 2 | 3.0 | 1 | 2.2 | 1 | 4.5 |
Eased considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 67 | 100 | 45 | 100 | 22 | 100 |
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 | 1.5 | 1 | 2.2 | 0 | 0.0 |
Remained basically unchanged | 54 | 80.6 | 34 | 75.6 | 20 | 90.9 |
Eased somewhat | 10 | 14.9 | 9 | 20.0 | 1 | 4.5 |
Eased considerably | 2 | 3.0 | 1 | 2.2 | 1 | 4.5 |
Total | 67 | 100 | 45 | 100 | 22 | 100 |
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 | 8 | 11.8 | 3 | 6.5 | 5 | 22.7 |
Remained basically unchanged | 34 | 50.0 | 22 | 47.8 | 12 | 54.5 |
Eased somewhat | 25 | 36.8 | 21 | 45.7 | 4 | 18.2 |
Eased considerably | 1 | 1.5 | 0 | 0.0 | 1 | 4.5 |
Total | 68 | 100 | 46 | 100 | 22 | 100 |
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 | 4.5 | 0 | 0.0 | 3 | 14.3 |
Remained basically unchanged | 53 | 80.3 | 37 | 82.2 | 16 | 76.2 |
Eased somewhat | 8 | 12.1 | 7 | 15.6 | 1 | 4.8 |
Eased considerably | 2 | 3.0 | 1 | 2.2 | 1 | 4.8 |
Total | 66 | 100 | 45 | 100 | 21 | 100 |
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 | 9.1 |
Remained basically unchanged | 49 | 72.1 | 31 | 67.4 | 18 | 81.8 |
Eased somewhat | 17 | 25.0 | 15 | 32.6 | 2 | 9.1 |
Eased considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 68 | 100 | 46 | 100 | 22 | 100 |
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 | 64 | 95.5 | 44 | 97.8 | 20 | 90.9 |
Eased somewhat | 3 | 4.5 | 1 | 2.2 | 2 | 9.1 |
Eased considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 67 | 100 | 45 | 100 | 22 | 100 |
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 | 2 | 3.1 | 1 | 2.3 | 1 | 4.8 |
Remained basically unchanged | 58 | 90.6 | 39 | 90.7 | 19 | 90.5 |
Eased somewhat | 4 | 6.2 | 3 | 7.0 | 1 | 4.8 |
Eased considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 64 | 100 | 43 | 100 | 21 | 100 |
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 | 1 | 1.6 | 1 | 2.4 | 0 | 0.0 |
Remained basically unchanged | 58 | 92.1 | 36 | 87.8 | 22 | 100.0 |
Eased somewhat | 4 | 6.3 | 4 | 9.8 | 0 | 0.0 |
Eased considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 63 | 100 | 41 | 100 | 22 | 100 |
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 | 3 | 4.8 | 2 | 4.9 | 1 | 4.5 |
Remained basically unchanged | 55 | 87.3 | 35 | 85.4 | 20 | 90.9 |
Eased somewhat | 5 | 7.9 | 4 | 9.8 | 1 | 4.5 |
Eased considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 63 | 100 | 41 | 100 | 22 | 100 |
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 | 2 | 3.2 | 1 | 2.4 | 1 | 4.5 |
Remained basically unchanged | 55 | 87.3 | 36 | 87.8 | 19 | 86.4 |
Eased somewhat | 4 | 6.3 | 3 | 7.3 | 1 | 4.5 |
Eased considerably | 2 | 3.2 | 1 | 2.4 | 1 | 4.5 |
Total | 63 | 100 | 41 | 100 | 22 | 100 |
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 | 5 | 7.9 | 2 | 4.9 | 3 | 13.6 |
Remained basically unchanged | 40 | 63.5 | 25 | 61.0 | 15 | 68.2 |
Eased somewhat | 17 | 27.0 | 14 | 34.1 | 3 | 13.6 |
Eased considerably | 1 | 1.6 | 0 | 0.0 | 1 | 4.5 |
Total | 63 | 100 | 41 | 100 | 22 | 100 |
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 | 7.9 | 2 | 4.9 | 3 | 13.6 |
Remained basically unchanged | 51 | 81.0 | 34 | 82.9 | 17 | 77.3 |
Eased somewhat | 5 | 7.9 | 4 | 9.8 | 1 | 4.5 |
Eased considerably | 2 | 3.2 | 1 | 2.4 | 1 | 4.5 |
Total | 63 | 100 | 41 | 100 | 22 | 100 |
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 | 1.6 | 0 | 0.0 | 1 | 4.5 |
Remained basically unchanged | 55 | 87.3 | 36 | 87.8 | 19 | 86.4 |
Eased somewhat | 7 | 11.1 | 5 | 12.2 | 2 | 9.1 |
Eased considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 63 | 100 | 41 | 100 | 22 | 100 |
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 | 3.2 | 1 | 2.5 | 1 | 4.3 |
Remained basically unchanged | 60 | 95.2 | 39 | 97.5 | 21 | 91.3 |
Eased somewhat | 1 | 1.6 | 0 | 0.0 | 1 | 4.3 |
Eased considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 63 | 100 | 40 | 100 | 23 | 100 |
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 | 2 | 3.2 | 1 | 2.5 | 1 | 4.5 |
Remained basically unchanged | 57 | 91.9 | 37 | 92.5 | 20 | 90.9 |
Eased somewhat | 3 | 4.8 | 2 | 5.0 | 1 | 4.5 |
Eased considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 62 | 100 | 40 | 100 | 22 | 100 |
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.)
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 | 8 | 100.0 | 3 | 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 | 8 | 100 | 3 | 100 | 5 | 100 |
b. Less favorable or more uncertain economic outlook
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 3 | 37.5 | 0 | 0.0 | 3 | 60.0 |
Somewhat important | 3 | 37.5 | 2 | 66.7 | 1 | 20.0 |
Very important | 2 | 25.0 | 1 | 33.3 | 1 | 20.0 |
Total | 8 | 100 | 3 | 100 | 5 | 100 |
c. Worsening of industry-specific problems (please specify industries)
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 4 | 50.0 | 1 | 33.3 | 3 | 60.0 |
Somewhat important | 2 | 25.0 | 0 | 0.0 | 2 | 40.0 |
Very important | 2 | 25.0 | 2 | 66.7 | 0 | 0.0 |
Total | 8 | 100 | 3 | 100 | 5 | 100 |
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 | 7 | 87.5 | 2 | 66.7 | 5 | 100.0 |
Somewhat important | 1 | 12.5 | 1 | 33.3 | 0 | 0.0 |
Very important | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 8 | 100 | 3 | 100 | 5 | 100 |
e. Reduced tolerance for risk
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 6 | 75.0 | 2 | 66.7 | 4 | 80.0 |
Somewhat important | 2 | 25.0 | 1 | 33.3 | 1 | 20.0 |
Very important | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 8 | 100 | 3 | 100 | 5 | 100 |
f. Decreased liquidity in the secondary market for these loans
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 7 | 87.5 | 2 | 66.7 | 5 | 100.0 |
Somewhat important | 1 | 12.5 | 1 | 33.3 | 0 | 0.0 |
Very important | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 8 | 100 | 3 | 100 | 5 | 100 |
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 | 75.0 | 3 | 100.0 | 3 | 60.0 |
Somewhat important | 2 | 25.0 | 0 | 0.0 | 2 | 40.0 |
Very important | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 8 | 100 | 3 | 100 | 5 | 100 |
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 | 7 | 87.5 | 3 | 100.0 | 4 | 80.0 |
Somewhat important | 1 | 12.5 | 0 | 0.0 | 1 | 20.0 |
Very important | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 8 | 100 | 3 | 100 | 5 | 100 |
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 | 26 | 96.3 | 20 | 95.2 | 6 | 100.0 |
Somewhat important | 1 | 3.7 | 1 | 4.8 | 0 | 0.0 |
Very important | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 27 | 100 | 21 | 100 | 6 | 100 |
b. More favorable or less uncertain economic outlook
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 20 | 71.4 | 16 | 72.7 | 4 | 66.7 |
Somewhat important | 7 | 25.0 | 6 | 27.3 | 1 | 16.7 |
Very important | 1 | 3.6 | 0 | 0.0 | 1 | 16.7 |
Total | 28 | 100 | 22 | 100 | 6 | 100 |
c. Improvement in industry-specific problems (please specify industries)
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 23 | 85.2 | 17 | 81.0 | 6 | 100.0 |
Somewhat important | 3 | 11.1 | 3 | 14.3 | 0 | 0.0 |
Very important | 1 | 3.7 | 1 | 4.8 | 0 | 0.0 |
Total | 27 | 100 | 21 | 100 | 6 | 100 |
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 | 16 | 55.2 | 11 | 47.8 | 5 | 83.3 |
Very important | 13 | 44.8 | 12 | 52.2 | 1 | 16.7 |
Total | 29 | 100 | 23 | 100 | 6 | 100 |
e. Increased tolerance for risk
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 19 | 67.9 | 14 | 63.6 | 5 | 83.3 |
Somewhat important | 7 | 25.0 | 6 | 27.3 | 1 | 16.7 |
Very important | 2 | 7.1 | 2 | 9.1 | 0 | 0.0 |
Total | 28 | 100 | 22 | 100 | 6 | 100 |
f. Increased liquidity in the secondary market for these loans
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 22 | 81.5 | 17 | 81.0 | 5 | 83.3 |
Somewhat important | 4 | 14.8 | 3 | 14.3 | 1 | 16.7 |
Very important | 1 | 3.7 | 1 | 4.8 | 0 | 0.0 |
Total | 27 | 100 | 21 | 100 | 6 | 100 |
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 | 96.3 | 20 | 95.2 | 6 | 100.0 |
Somewhat important | 1 | 3.7 | 1 | 4.8 | 0 | 0.0 |
Very important | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 27 | 100 | 21 | 100 | 6 | 100 |
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 | 23 | 85.2 | 18 | 85.7 | 5 | 83.3 |
Somewhat important | 4 | 14.8 | 3 | 14.3 | 1 | 16.7 |
Very important | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 27 | 100 | 21 | 100 | 6 | 100 |
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 | 12 | 17.4 | 11 | 23.9 | 1 | 4.3 |
About the same | 35 | 50.7 | 19 | 41.3 | 16 | 69.6 |
Moderately weaker | 22 | 31.9 | 16 | 34.8 | 6 | 26.1 |
Substantially weaker | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 69 | 100 | 46 | 100 | 23 | 100 |
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 | 13.8 | 7 | 16.7 | 2 | 8.7 |
About the same | 40 | 61.5 | 24 | 57.1 | 16 | 69.6 |
Moderately weaker | 16 | 24.6 | 11 | 26.2 | 5 | 21.7 |
Substantially weaker | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 65 | 100 | 42 | 100 | 23 | 100 |
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.)
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 | 5 | 38.5 | 5 | 45.5 | 0 | 0.0 |
Somewhat important | 8 | 61.5 | 6 | 54.5 | 2 | 100.0 |
Very important | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 13 | 100 | 11 | 100 | 2 | 100 |
b. Customer accounts receivable financing needs increased
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 3 | 23.1 | 3 | 27.3 | 0 | 0.0 |
Somewhat important | 10 | 76.9 | 8 | 72.7 | 2 | 100.0 |
Very important | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 13 | 100 | 11 | 100 | 2 | 100 |
c. Customer investment in plant or equipment increased
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 2 | 14.3 | 1 | 8.3 | 1 | 50.0 |
Somewhat important | 11 | 78.6 | 10 | 83.3 | 1 | 50.0 |
Very important | 1 | 7.1 | 1 | 8.3 | 0 | 0.0 |
Total | 14 | 100 | 12 | 100 | 2 | 100 |
d. Customer internally generated funds decreased
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 12 | 92.3 | 10 | 90.9 | 2 | 100.0 |
Somewhat important | 1 | 7.7 | 1 | 9.1 | 0 | 0.0 |
Very important | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 13 | 100 | 11 | 100 | 2 | 100 |
e. Customer merger or acquisition financing needs increased
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 4 | 28.6 | 3 | 25.0 | 1 | 50.0 |
Somewhat important | 8 | 57.1 | 7 | 58.3 | 1 | 50.0 |
Very important | 2 | 14.3 | 2 | 16.7 | 0 | 0.0 |
Total | 14 | 100 | 12 | 100 | 2 | 100 |
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 | 9 | 69.2 | 7 | 63.6 | 2 | 100.0 |
Somewhat important | 4 | 30.8 | 4 | 36.4 | 0 | 0.0 |
Very important | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 13 | 100 | 11 | 100 | 2 | 100 |
g. Customer precautionary demand for cash and liquidity increased
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 10 | 90.9 | 8 | 88.9 | 2 | 100.0 |
Somewhat important | 1 | 9.1 | 1 | 11.1 | 0 | 0.0 |
Very important | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 11 | 100 | 9 | 100 | 2 | 100 |
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 | 13 | 65.0 | 9 | 64.3 | 4 | 66.7 |
Somewhat important | 7 | 35.0 | 5 | 35.7 | 2 | 33.3 |
Very important | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 20 | 100 | 14 | 100 | 6 | 100 |
b. Customer accounts receivable financing needs decreased
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 13 | 68.4 | 9 | 69.2 | 4 | 66.7 |
Somewhat important | 6 | 31.6 | 4 | 30.8 | 2 | 33.3 |
Very important | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 19 | 100 | 13 | 100 | 6 | 100 |
c. Customer investment in plant or equipment decreased
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 9 | 45.0 | 6 | 42.9 | 3 | 50.0 |
Somewhat important | 10 | 50.0 | 7 | 50.0 | 3 | 50.0 |
Very important | 1 | 5.0 | 1 | 7.1 | 0 | 0.0 |
Total | 20 | 100 | 14 | 100 | 6 | 100 |
d. Customer internally generated funds increased
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 4 | 19.0 | 2 | 13.3 | 2 | 33.3 |
Somewhat important | 15 | 71.4 | 11 | 73.3 | 4 | 66.7 |
Very important | 2 | 9.5 | 2 | 13.3 | 0 | 0.0 |
Total | 21 | 100 | 15 | 100 | 6 | 100 |
e. Customer merger or acquisition financing needs decreased
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 11 | 52.4 | 6 | 40.0 | 5 | 83.3 |
Somewhat important | 9 | 42.9 | 8 | 53.3 | 1 | 16.7 |
Very important | 1 | 4.8 | 1 | 6.7 | 0 | 0.0 |
Total | 21 | 100 | 15 | 100 | 6 | 100 |
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 | 8 | 38.1 | 6 | 40.0 | 2 | 33.3 |
Somewhat important | 11 | 52.4 | 7 | 46.7 | 4 | 66.7 |
Very important | 2 | 9.5 | 2 | 13.3 | 0 | 0.0 |
Total | 21 | 100 | 15 | 100 | 6 | 100 |
g. Customer precautionary demand for cash and liquidity decreased
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 14 | 70.0 | 9 | 64.3 | 5 | 83.3 |
Somewhat important | 6 | 30.0 | 5 | 35.7 | 1 | 16.7 |
Very important | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 20 | 100 | 14 | 100 | 6 | 100 |
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 | 9 | 13.0 | 8 | 17.4 | 1 | 4.3 |
The number of inquiries has stayed about the same | 41 | 59.4 | 26 | 56.5 | 15 | 65.2 |
The number of inquiries has decreased moderately | 19 | 27.5 | 12 | 26.1 | 7 | 30.4 |
The number of inquiries has decreased substantially | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 69 | 100 | 46 | 100 | 23 | 100 |
Questions 7-12 ask about changes in standards and demand over the past three months for three different types of commercial real estate (CRE) loans at your bank: construction and land development loans, loans secured by nonfarm nonresidential properties, and loans secured by multifamily residential properties. Please report changes in enforcement of existing policies as changes in policies.
7. Over the past three months, how have your bank's credit standards for approving new applications for construction and land development loans or credit lines 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 | 6 | 9.0 | 3 | 6.8 | 3 | 13.0 |
Remained basically unchanged | 59 | 88.1 | 40 | 90.9 | 19 | 82.6 |
Eased somewhat | 2 | 3.0 | 1 | 2.3 | 1 | 4.3 |
Eased considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 67 | 100 | 44 | 100 | 23 | 100 |
For this question, 1 respondent answered "My bank does not originate construction and land development loans or credit lines."
8. Over the past three months, how have your bank's credit standards for approving new applications for loans secured by nonfarm nonresidential properties 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 | 6 | 8.8 | 3 | 6.7 | 3 | 13.0 |
Remained basically unchanged | 58 | 85.3 | 39 | 86.7 | 19 | 82.6 |
Eased somewhat | 4 | 5.9 | 3 | 6.7 | 1 | 4.3 |
Eased considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 68 | 100 | 45 | 100 | 23 | 100 |
9. Over the past three months, how have your bank's credit standards for approving new applications for loans secured by multifamily residential properties changed?
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Tightened considerably | 1 | 1.5 | 1 | 2.2 | 0 | 0.0 |
Tightened somewhat | 4 | 5.9 | 1 | 2.2 | 3 | 13.0 |
Remained basically unchanged | 60 | 88.2 | 40 | 88.9 | 20 | 87.0 |
Eased somewhat | 3 | 4.4 | 3 | 6.7 | 0 | 0.0 |
Eased considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 68 | 100 | 45 | 100 | 23 | 100 |
10. Apart from normal seasonal variation, how has demand for construction and land development loans changed over the past three months? (Please consider the number of requests for new spot loans, for disbursement of funds under existing loan commitments, and for new or increased credit lines.)
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 | 6.0 | 3 | 6.8 | 1 | 4.3 |
About the same | 47 | 70.1 | 30 | 68.2 | 17 | 73.9 |
Moderately weaker | 16 | 23.9 | 11 | 25.0 | 5 | 21.7 |
Substantially weaker | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 67 | 100 | 44 | 100 | 23 | 100 |
11. Apart from normal seasonal variation, how has demand for loans secured by nonfarm nonresidential properties changed over the past three months? (Please consider the number of requests for new spot loans, for disbursement of funds under existing loan commitments, and for new or increased credit lines.)
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 | 4.4 | 1 | 2.2 | 2 | 8.7 |
About the same | 55 | 80.9 | 37 | 82.2 | 18 | 78.3 |
Moderately weaker | 10 | 14.7 | 7 | 15.6 | 3 | 13.0 |
Substantially weaker | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 68 | 100 | 45 | 100 | 23 | 100 |
12. Apart from normal seasonal variation, how has demand for loans secured by multifamily residential properties changed over the past three months? (Please consider the number of requests for new spot loans, for disbursement of funds under existing loan commitments, and for new or increased credit lines.)
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 | 6 | 8.8 | 5 | 11.1 | 1 | 4.3 |
About the same | 53 | 77.9 | 34 | 75.6 | 19 | 82.6 |
Moderately weaker | 9 | 13.2 | 6 | 13.3 | 3 | 13.0 |
Substantially weaker | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 68 | 100 | 45 | 100 | 23 | 100 |
Note: Beginning with the January 2015 survey, the loan categories referred to in the questions regarding changes in credit standards and demand for residential mortgage loans have been revised to reflect the Consumer Financial Protection Bureau's qualified mortgage rules.
Questions 13-14 ask about seven categories of residential mortgage loans at your bank: Government-Sponsored Enterprise eligible (GSE-eligible) residential mortgages, government residential mortgages, Qualified Mortgage non-jumbo non-GSE-eligible (QM non-jumbo, non-GSE-eligible) residential mortgages, QM jumbo residential mortgages, non-QM jumbo residential mortgages, non-QM non-jumbo residential mortgages, and subprime residential mortgages. For the purposes of this survey, please use the following definitions of these loan categories and include first-lien closed-end loans to purchase homes only. The loan categories have been defined so that every first-lien closed-end residential mortgage loan used for home purchase fits into one of the following seven categories:
- The GSE-eligible category of residential mortgages includes loans that meet the underwriting guidelines, including loan limit amounts, of the GSEs - Fannie Mae and Freddie Mac.
- The government category of residential mortgages includes loans that are insured by the Federal Housing Administration, guaranteed by the Department of Veterans Affairs, or originated under government programs, including the U.S. Department of Agriculture home loan programs.
- The QM non-jumbo, non-GSE-eligible category of residential mortgages includes loans that satisfy the standards for a qualified mortgage and have loan balances that are below the loan limit amounts set by the GSEs but otherwise do not meet the GSE underwriting guidelines.
- The QM jumbo category of residential mortgages includes loans that satisfy the standards for a qualified mortgage but have loan balances that are above the loan limit amount set by the GSEs.
- The non-QM jumbo category of residential mortgages includes loans that do not satisfy the standards for a qualified mortgage and have loan balances that are above the loan limit amount set by the GSEs.
- The non-QM non-jumbo category of residential mortgages includes loans that do not satisfy the standards for a qualified mortgage and have loan balances that are below the loan limit amount set by the GSEs. (Please exclude loans classified by your bank as subprime in this category.)
- The subprime category of residential mortgages includes loans classified by your bank as subprime. This category typically includes loans made to borrowers with weakened credit histories that include payment delinquencies, charge-offs, judgements, and/or bankruptcies; reduced repayment capacity as measured by credit scores or debt-to-income ratios; or incomplete credit histories.
Question 13 deals with changes in your bank's credit standards for loans in each of the seven loan categories over the past three months. 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. Question 14 deals with changes in demand for loans in each of the seven loan categories over the past three months.
13. Over the past three months, how have your bank's credit standards for approving applications from individuals for mortgage loans to purchase homes changed? (Please consider only new originations as opposed to the refinancing of existing mortgages.)
A. Credit standards on mortgage loans that your bank categorizes as GSE-eligible 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 | 55 | 88.7 | 33 | 86.8 | 22 | 91.7 |
Eased somewhat | 7 | 11.3 | 5 | 13.2 | 2 | 8.3 |
Eased considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 62 | 100 | 38 | 100 | 24 | 100 |
For this question, 6 respondents answered "My bank does not originate GSE-eligible residential mortgages."
B. Credit standards on mortgage loans that your bank categorizes as government 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 | 51 | 87.9 | 31 | 88.6 | 20 | 87.0 |
Eased somewhat | 7 | 12.1 | 4 | 11.4 | 3 | 13.0 |
Eased considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 58 | 100 | 35 | 100 | 23 | 100 |
For this question, 9 respondents answered "My bank does not originate government residential mortgages."
C. Credit standards on mortgage loans that your bank categorizes as QM non-jumbo, non-GSE-eligible 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 | 1 | 1.8 | 0 | 0.0 | 1 | 4.8 |
Remained basically unchanged | 51 | 91.1 | 33 | 94.3 | 18 | 85.7 |
Eased somewhat | 4 | 7.1 | 2 | 5.7 | 2 | 9.5 |
Eased considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 56 | 100 | 35 | 100 | 21 | 100 |
For this question, 11 respondents answered "My bank does not originate QM non-jumbo, non-GSE-eligible residential mortgages."
D. Credit standards on mortgage loans that your bank categorizes as QM jumbo 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 | 2 | 3.3 | 0 | 0.0 | 2 | 8.7 |
Remained basically unchanged | 50 | 83.3 | 32 | 86.5 | 18 | 78.3 |
Eased somewhat | 8 | 13.3 | 5 | 13.5 | 3 | 13.0 |
Eased considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 60 | 100 | 37 | 100 | 23 | 100 |
For this question, 6 respondents answered "My bank does not originate QM jumbo residential mortgages."
E. Credit standards on mortgage loans that your bank categorizes as non-QM jumbo 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 | 3 | 5.3 | 0 | 0.0 | 3 | 15.8 |
Remained basically unchanged | 47 | 82.5 | 34 | 89.5 | 13 | 68.4 |
Eased somewhat | 7 | 12.3 | 4 | 10.5 | 3 | 15.8 |
Eased considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 57 | 100 | 38 | 100 | 19 | 100 |
For this question, 9 respondents answered "My bank does not originate non-QM jumbo residential mortgages."
F. Credit standards on mortgage loans that your bank categorizes as non-QM non-jumbo 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 | 2 | 3.6 | 0 | 0.0 | 2 | 10.5 |
Remained basically unchanged | 49 | 89.1 | 35 | 97.2 | 14 | 73.7 |
Eased somewhat | 4 | 7.3 | 1 | 2.8 | 3 | 15.8 |
Eased considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 55 | 100 | 36 | 100 | 19 | 100 |
For this question, 12 respondents answered "My bank does not originate non-QM non-jumbo residential mortgages."
G. 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.
14. Apart from normal seasonal variation, how has demand for mortgages to purchase homes changed over the past three months? (Please consider only applications for new originations as opposed to applications for refinancing of existing mortgages.)
A. Demand for mortgages that your bank categorizes as GSE-eligible 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 | 6 | 9.8 | 4 | 10.8 | 2 | 8.3 |
About the same | 36 | 59.0 | 21 | 56.8 | 15 | 62.5 |
Moderately weaker | 18 | 29.5 | 11 | 29.7 | 7 | 29.2 |
Substantially weaker | 1 | 1.6 | 1 | 2.7 | 0 | 0.0 |
Total | 61 | 100 | 37 | 100 | 24 | 100 |
B. Demand for mortgages that your bank categorizes as government 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 | 2 | 3.5 | 2 | 5.7 | 0 | 0.0 |
About the same | 34 | 59.6 | 19 | 54.3 | 15 | 68.2 |
Moderately weaker | 19 | 33.3 | 12 | 34.3 | 7 | 31.8 |
Substantially weaker | 2 | 3.5 | 2 | 5.7 | 0 | 0.0 |
Total | 57 | 100 | 35 | 100 | 22 | 100 |
C. Demand for mortgages that your bank categorizes as QM non-jumbo, non-GSE-eligible 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 | 4 | 7.1 | 2 | 5.7 | 2 | 9.5 |
About the same | 32 | 57.1 | 20 | 57.1 | 12 | 57.1 |
Moderately weaker | 19 | 33.9 | 12 | 34.3 | 7 | 33.3 |
Substantially weaker | 1 | 1.8 | 1 | 2.9 | 0 | 0.0 |
Total | 56 | 100 | 35 | 100 | 21 | 100 |
D. Demand for mortgages that your bank categorizes as QM jumbo 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 | 7 | 11.7 | 5 | 13.5 | 2 | 8.7 |
About the same | 37 | 61.7 | 20 | 54.1 | 17 | 73.9 |
Moderately weaker | 15 | 25.0 | 11 | 29.7 | 4 | 17.4 |
Substantially weaker | 1 | 1.7 | 1 | 2.7 | 0 | 0.0 |
Total | 60 | 100 | 37 | 100 | 23 | 100 |
E. Demand for mortgages that your bank categorizes as non-QM jumbo 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 | 6 | 10.3 | 4 | 10.5 | 2 | 10.0 |
About the same | 40 | 69.0 | 25 | 65.8 | 15 | 75.0 |
Moderately weaker | 11 | 19.0 | 8 | 21.1 | 3 | 15.0 |
Substantially weaker | 1 | 1.7 | 1 | 2.6 | 0 | 0.0 |
Total | 58 | 100 | 38 | 100 | 20 | 100 |
F. Demand for mortgages that your bank categorizes as non-QM non-jumbo 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 | 4 | 7.3 | 2 | 5.6 | 2 | 10.5 |
About the same | 37 | 67.3 | 25 | 69.4 | 12 | 63.2 |
Moderately weaker | 13 | 23.6 | 8 | 22.2 | 5 | 26.3 |
Substantially weaker | 1 | 1.8 | 1 | 2.8 | 0 | 0.0 |
Total | 55 | 100 | 36 | 100 | 19 | 100 |
G. 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 15-16 ask about revolving home equity lines of credit at your bank. Question 15 deals with changes in your bank's credit standards over the past three months. Question 16 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.
15. 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 | 2 | 3.2 | 2 | 5.0 | 0 | 0.0 |
Remained basically unchanged | 60 | 95.2 | 38 | 95.0 | 22 | 95.7 |
Eased somewhat | 1 | 1.6 | 0 | 0.0 | 1 | 4.3 |
Eased considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 63 | 100 | 40 | 100 | 23 | 100 |
For this question, 4 respondents answered "My bank does not originate revolving home equity lines of credit."
16. 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 | 5 | 7.9 | 4 | 10.0 | 1 | 4.3 |
About the same | 42 | 66.7 | 23 | 57.5 | 19 | 82.6 |
Moderately weaker | 16 | 25.4 | 13 | 32.5 | 3 | 13.0 |
Substantially weaker | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 63 | 100 | 40 | 100 | 23 | 100 |
Questions 17-26 ask about consumer lending at your bank. Question 17 deals with changes in your bank's willingness to make consumer loans over the past three months. Questions 18-23 deal with changes in credit standards and loan terms over the same period. Questions 24-26 deal 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.
17. 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 | 1.8 | 1 | 2.9 | 0 | 0.0 |
Somewhat more willing | 7 | 12.3 | 5 | 14.7 | 2 | 8.7 |
About unchanged | 49 | 86.0 | 28 | 82.4 | 21 | 91.3 |
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 | 57 | 100 | 34 | 100 | 23 | 100 |
For this question, 11 respondents answered "My bank does not originate consumer installment loans."
18. 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 | 4.3 | 2 | 6.2 | 0 | 0.0 |
Remained basically unchanged | 41 | 89.1 | 28 | 87.5 | 13 | 92.9 |
Eased somewhat | 3 | 6.5 | 2 | 6.2 | 1 | 7.1 |
Eased considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 46 | 100 | 32 | 100 | 14 | 100 |
For this question, 21 respondents answered "My bank does not originate credit card loans to individuals or households."
19. 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 | 5 | 9.1 | 4 | 12.5 | 1 | 4.3 |
Remained basically unchanged | 47 | 85.5 | 25 | 78.1 | 22 | 95.7 |
Eased somewhat | 3 | 5.5 | 3 | 9.4 | 0 | 0.0 |
Eased considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 55 | 100 | 32 | 100 | 23 | 100 |
For this question, 12 respondents answered "My bank does not originate auto loans to individuals or households."
20. 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 | 2 | 3.6 | 1 | 3.1 | 1 | 4.2 |
Remained basically unchanged | 50 | 89.3 | 29 | 90.6 | 21 | 87.5 |
Eased somewhat | 4 | 7.1 | 2 | 6.2 | 2 | 8.3 |
Eased considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 56 | 100 | 32 | 100 | 24 | 100 |
For this question, 11 respondents answered "My bank does not originate consumer loans other than credit card or auto loans."
21. 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 | 3 | 7.0 | 3 | 9.4 | 0 | 0.0 |
Remained basically unchanged | 39 | 90.7 | 28 | 87.5 | 11 | 100.0 |
Eased somewhat | 1 | 2.3 | 1 | 3.1 | 0 | 0.0 |
Eased considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 43 | 100 | 32 | 100 | 11 | 100 |
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 | 4.7 | 2 | 6.2 | 0 | 0.0 |
Remained basically unchanged | 41 | 95.3 | 30 | 93.8 | 11 | 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 | 43 | 100 | 32 | 100 | 11 | 100 |
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 | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Remained basically unchanged | 43 | 100.0 | 32 | 100.0 | 11 | 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 | 43 | 100 | 32 | 100 | 11 | 100 |
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 | 2 | 4.7 | 2 | 6.2 | 0 | 0.0 |
Remained basically unchanged | 40 | 93.0 | 29 | 90.6 | 11 | 100.0 |
Eased somewhat | 1 | 2.3 | 1 | 3.1 | 0 | 0.0 |
Eased considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 43 | 100 | 32 | 100 | 11 | 100 |
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 | 3 | 7.0 | 2 | 6.2 | 1 | 9.1 |
Remained basically unchanged | 40 | 93.0 | 30 | 93.8 | 10 | 90.9 |
Eased somewhat | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Eased considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 43 | 100 | 32 | 100 | 11 | 100 |
22. 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 | 1 | 1.8 | 1 | 3.1 | 0 | 0.0 |
Remained basically unchanged | 53 | 96.4 | 30 | 93.8 | 23 | 100.0 |
Eased somewhat | 1 | 1.8 | 1 | 3.1 | 0 | 0.0 |
Eased considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 55 | 100 | 32 | 100 | 23 | 100 |
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 | 8 | 14.5 | 6 | 18.8 | 2 | 8.7 |
Remained basically unchanged | 45 | 81.8 | 25 | 78.1 | 20 | 87.0 |
Eased somewhat | 2 | 3.6 | 1 | 3.1 | 1 | 4.3 |
Eased considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 55 | 100 | 32 | 100 | 23 | 100 |
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 | 1 | 1.8 | 1 | 3.1 | 0 | 0.0 |
Remained basically unchanged | 53 | 96.4 | 30 | 93.8 | 23 | 100.0 |
Eased somewhat | 1 | 1.8 | 1 | 3.1 | 0 | 0.0 |
Eased considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 55 | 100 | 32 | 100 | 23 | 100 |
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 | 1 | 1.8 | 1 | 3.1 | 0 | 0.0 |
Remained basically unchanged | 52 | 94.5 | 29 | 90.6 | 23 | 100.0 |
Eased somewhat | 2 | 3.6 | 2 | 6.2 | 0 | 0.0 |
Eased considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 55 | 100 | 32 | 100 | 23 | 100 |
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 | 3 | 5.5 | 2 | 6.2 | 1 | 4.3 |
Remained basically unchanged | 52 | 94.5 | 30 | 93.8 | 22 | 95.7 |
Eased somewhat | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Eased considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 55 | 100 | 32 | 100 | 23 | 100 |
23. 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 | 54 | 94.7 | 30 | 90.9 | 24 | 100.0 |
Eased somewhat | 3 | 5.3 | 3 | 9.1 | 0 | 0.0 |
Eased considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 57 | 100 | 33 | 100 | 24 | 100 |
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 | 3 | 5.3 | 2 | 6.1 | 1 | 4.2 |
Remained basically unchanged | 53 | 93.0 | 31 | 93.9 | 22 | 91.7 |
Eased somewhat | 1 | 1.8 | 0 | 0.0 | 1 | 4.2 |
Eased considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 57 | 100 | 33 | 100 | 24 | 100 |
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 | 57 | 100.0 | 33 | 100.0 | 24 | 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 | 57 | 100 | 33 | 100 | 24 | 100 |
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 | 2 | 3.5 | 1 | 3.0 | 1 | 4.2 |
Remained basically unchanged | 54 | 94.7 | 31 | 93.9 | 23 | 95.8 |
Eased somewhat | 1 | 1.8 | 1 | 3.0 | 0 | 0.0 |
Eased considerably | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 57 | 100 | 33 | 100 | 24 | 100 |
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 | 1 | 1.8 | 0 | 0.0 | 1 | 4.3 |
Remained basically unchanged | 55 | 98.2 | 33 | 100.0 | 22 | 95.7 |
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 | 33 | 100 | 23 | 100 |
24. 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 | 1 | 2.2 | 1 | 3.1 | 0 | 0.0 |
Moderately stronger | 2 | 4.3 | 2 | 6.2 | 0 | 0.0 |
About the same | 38 | 82.6 | 26 | 81.2 | 12 | 85.7 |
Moderately weaker | 5 | 10.9 | 3 | 9.4 | 2 | 14.3 |
Substantially weaker | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 46 | 100 | 32 | 100 | 14 | 100 |
25. 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 | 1 | 1.8 | 1 | 3.1 | 0 | 0.0 |
Moderately stronger | 3 | 5.5 | 0 | 0.0 | 3 | 13.0 |
About the same | 46 | 83.6 | 26 | 81.2 | 20 | 87.0 |
Moderately weaker | 5 | 9.1 | 5 | 15.6 | 0 | 0.0 |
Substantially weaker | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 55 | 100 | 32 | 100 | 23 | 100 |
26. 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 | 6 | 10.5 | 5 | 15.2 | 1 | 4.2 |
About the same | 48 | 84.2 | 25 | 75.8 | 23 | 95.8 |
Moderately weaker | 3 | 5.3 | 3 | 9.1 | 0 | 0.0 |
Substantially weaker | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 57 | 100 | 33 | 100 | 24 | 100 |
This first set of special questions, Questions 27 and 28, asks about changes in your bank's likelihood of approving applications for credit card accounts and auto loans by borrowers' credit score.
27. In comparison to the beginning of the year, how much more or less likely is your bank to currently approve an application for a credit card to a borrower with the stated FICO score (or equivalent)? In each case assume that all other borrower characteristics are typical for credit card applications with that FICO score (or equivalent).
A. A borrower with a FICO score (or equivalent) of 620
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Much more likely | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Somewhat more likely | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
About as likely | 31 | 70.5 | 22 | 66.7 | 9 | 81.8 |
Somewhat less likely | 9 | 20.5 | 7 | 21.2 | 2 | 18.2 |
Much less likely | 4 | 9.1 | 4 | 12.1 | 0 | 0.0 |
Total | 44 | 100 | 33 | 100 | 11 | 100 |
For this question, 22 respondents answered "My bank does not originate credit card loans."
B. A borrower with a FICO score (or equivalent) of 680
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Much more likely | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Somewhat more likely | 5 | 11.4 | 4 | 12.1 | 1 | 9.1 |
About as likely | 36 | 81.8 | 26 | 78.8 | 10 | 90.9 |
Somewhat less likely | 3 | 6.8 | 3 | 9.1 | 0 | 0.0 |
Much less likely | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 44 | 100 | 33 | 100 | 11 | 100 |
C. A borrower with a FICO score (or equivalent) of 720
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Much more likely | 2 | 4.7 | 1 | 3.1 | 1 | 9.1 |
Somewhat more likely | 6 | 14.0 | 4 | 12.5 | 2 | 18.2 |
About as likely | 34 | 79.1 | 26 | 81.2 | 8 | 72.7 |
Somewhat less likely | 1 | 2.3 | 1 | 3.1 | 0 | 0.0 |
Much less likely | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 43 | 100 | 32 | 100 | 11 | 100 |
28. In comparison to the beginning of the year, how much more or less likely is your bank to currently approve an application for an auto loan to a borrower with the stated FICO score (or equivalent)? In each case assume that all other borrower characteristics are typical for auto loan applications with that FICO score (or equivalent).
A. A borrower with a FICO score (or equivalent) of 620
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Much more likely | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Somewhat more likely | 3 | 5.8 | 2 | 6.9 | 1 | 4.3 |
About as likely | 38 | 73.1 | 20 | 69.0 | 18 | 78.3 |
Somewhat less likely | 7 | 13.5 | 3 | 10.3 | 4 | 17.4 |
Much less likely | 4 | 7.7 | 4 | 13.8 | 0 | 0.0 |
Total | 52 | 100 | 29 | 100 | 23 | 100 |
For this question, 13 respondents answered "My bank does not originate auto loans."
B. A borrower with a FICO score (or equivalent) of 680
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Much more likely | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Somewhat more likely | 6 | 11.8 | 3 | 10.7 | 3 | 13.0 |
About as likely | 42 | 82.4 | 23 | 82.1 | 19 | 82.6 |
Somewhat less likely | 3 | 5.9 | 2 | 7.1 | 1 | 4.3 |
Much less likely | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 51 | 100 | 28 | 100 | 23 | 100 |
C. A borrower with a FICO score (or equivalent) of 720
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Much more likely | 2 | 3.9 | 1 | 3.6 | 1 | 4.3 |
Somewhat more likely | 7 | 13.7 | 5 | 17.9 | 2 | 8.7 |
About as likely | 41 | 80.4 | 21 | 75.0 | 20 | 87.0 |
Somewhat less likely | 1 | 2.0 | 1 | 3.6 | 0 | 0.0 |
Much less likely | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 51 | 100 | 28 | 100 | 23 | 100 |
Please consider a hypothetical scenario in which your bank is operating in an interest rate environment in which there is a moderate inversion of the U.S. Treasury yield curve. In particular, please assume that the 3-month Treasury bill yield remains at its current level and the 10-year Treasury yield falls moderately below that level, and that this situation prevails over the next year. The following questions ask how your bank's credit standards or price terms across the five major loan categories would likely change in response to that hypothetical scenario.
29. How has the flattening of the yield curve this year affected your bank's credit standards and price terms for the following loan categories? (Please consider how the flattening of the yield curve has affected your bank's lending policies this year independent of other factors that have influenced those policies.)
A. In response to the yield curve flattening since the start of this year, my bank's credit standards for:
a. C&I loans or credit lines are currently:
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Substantially tighter than they would have otherwise been | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Somewhat tighter than they would have otherwise been | 4 | 6.1 | 2 | 4.7 | 2 | 8.7 |
Basically unchanged compared to where they would would have otherwise been | 61 | 92.4 | 40 | 93.0 | 21 | 91.3 |
Somewhat easier than they would have otherwise been | 1 | 1.5 | 1 | 2.3 | 0 | 0.0 |
Substantially easier than they would have otherwise been | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 66 | 100 | 43 | 100 | 23 | 100 |
For this question, 1 respondent answered "My bank does not originate C&I loans."
b. Loans or credit lines secured by commercial real estate (CRE loans) are currently:
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Substantially tighter than they would have otherwise been | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Somewhat tighter than they would have otherwise been | 8 | 12.1 | 4 | 9.3 | 4 | 17.4 |
Basically unchanged compared to where they would have otherwise been | 57 | 86.4 | 38 | 88.4 | 19 | 82.6 |
Somewhat easier than they would have otherwise been | 1 | 1.5 | 1 | 2.3 | 0 | 0.0 |
Substantially easier than they would have otherwise been | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 66 | 100 | 43 | 100 | 23 | 100 |
c. Loans or credit lines secured by residential real estate (RRE loans) are currently:
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Substantially tighter than they would have otherwise been | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Somewhat tighter than they would have otherwise been | 1 | 1.7 | 1 | 2.8 | 0 | 0.0 |
Basically unchanged compared to where they would have otherwise been | 57 | 96.6 | 35 | 97.2 | 22 | 95.7 |
Somewhat easier than they would have otherwise been | 1 | 1.7 | 0 | 0.0 | 1 | 4.3 |
Substantially easier than they would have otherwise been | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 59 | 100 | 36 | 100 | 23 | 100 |
For this question, 4 respondents answered "My bank does not originate RRE loans."
d. Credit card loans or lines of credit are currently:
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Substantially tighter than they would have otherwise been | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Somewhat tighter than they would have otherwise been | 2 | 4.3 | 1 | 3.2 | 1 | 6.7 |
Basically unchanged compared to where they would have otherwise been | 43 | 93.5 | 29 | 93.5 | 14 | 93.3 |
Somewhat easier than they would have otherwise been | 1 | 2.2 | 1 | 3.2 | 0 | 0.0 |
Substantially easier than they would have otherwise been | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 46 | 100 | 31 | 100 | 15 | 100 |
For this question, 19 respondents answered "My bank does not originate credit card loans."
e. Auto loans or lines of credit are currently:
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Substantially tighter than they would have otherwise been | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Somewhat tighter than they would have otherwise been | 2 | 3.9 | 1 | 3.3 | 1 | 4.8 |
Basically unchanged compared to where they would have otherwise been | 48 | 94.1 | 28 | 93.3 | 20 | 95.2 |
Somewhat easier than they would have otherwise been | 1 | 2.0 | 1 | 3.3 | 0 | 0.0 |
Substantially easier than they would have otherwise been | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 51 | 100 | 30 | 100 | 21 | 100 |
For this question, 14 respondents answered "My bank does not originate auto loans."
B. In response to the yield curve flattening since the start of this year, my bank's price terms (e.g., loan spreads over my bank's cost of funds or premia charged for risker loans, for which a higher spread or premium represents a tightening in those terms) for:
a. C&I loans or credit lines are currently:
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Substantially tighter than they would have otherwise been | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Somewhat tighter than they would have otherwise been | 8 | 12.3 | 4 | 9.5 | 4 | 17.4 |
Basically unchanged compared to where they would have otherwise been | 50 | 76.9 | 36 | 85.7 | 14 | 60.9 |
Somewhat easier than they would have otherwise been | 6 | 9.2 | 2 | 4.8 | 4 | 17.4 |
Substantially easier than they would have otherwise been | 1 | 1.5 | 0 | 0.0 | 1 | 4.3 |
Total | 65 | 100 | 42 | 100 | 23 | 100 |
b. Loans or credit lines secured by commercial real estate (CRE loans) are currently:
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Substantially tighter than they would have otherwise been | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Somewhat tighter than they would have otherwise been | 14 | 21.2 | 9 | 20.9 | 5 | 21.7 |
Basically unchanged compared to where they would have otherwise been | 47 | 71.2 | 32 | 74.4 | 15 | 65.2 |
Somewhat easier than they would have otherwise been | 5 | 7.6 | 2 | 4.7 | 3 | 13.0 |
Substantially easier than they would have otherwise been | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 66 | 100 | 43 | 100 | 23 | 100 |
c. Loans or credit lines secured by residential real estate (RRE loans) are currently:
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Substantially tighter than they would have otherwise been | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Somewhat tighter than they would have otherwise been | 9 | 15.3 | 6 | 16.7 | 3 | 13.0 |
Basically unchanged compared to where they would have otherwise been | 50 | 84.7 | 30 | 83.3 | 20 | 87.0 |
Somewhat easier than they would have otherwise been | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Substantially easier than they would have otherwise been | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 59 | 100 | 36 | 100 | 23 | 100 |
d. Credit card loans or lines of credit are currently:
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Substantially tighter than they would have otherwise been | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Somewhat tighter than they would have otherwise been | 2 | 4.4 | 1 | 3.2 | 1 | 7.1 |
Basically unchanged compared to where they would have otherwise been | 43 | 95.6 | 30 | 96.8 | 13 | 92.9 |
Somewhat easier than they would have otherwise been | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Substantially easier than they would have otherwise been | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 45 | 100 | 31 | 100 | 14 | 100 |
e. Auto loans or lines of credit are currently:
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Substantially tighter than they would have otherwise been | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Somewhat tighter than they would have otherwise been | 2 | 3.9 | 1 | 3.3 | 1 | 4.8 |
Basically unchanged compared to where they would have otherwise been | 46 | 90.2 | 27 | 90.0 | 19 | 90.5 |
Somewhat easier than they would have otherwise been | 3 | 5.9 | 2 | 6.7 | 1 | 4.8 |
Substantially easier than they would have otherwise been | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 51 | 100 | 30 | 100 | 21 | 100 |
30. To the extent that your bank's credit standards or price terms have changed in response to the flattening of the yield curve since the start of this year, what are the most important reasons for the changes? (Please respond to A if you indicated a tightening in standards or price terms in responding to any of the preceding questions in Question 29, B if you indicated an easing in standards or price terms in responding to any of the preceding questions in Question 29, or both, as appropriate).
A. Possible reasons why my bank's credit standards or price terms are currently tighter than they would have been had the yield curve not flattened
1. Relative to my bank's cost of funds, the lending categories for which my bank tightened its credit policies became less profitable
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 3 | 21.4 | 1 | 12.5 | 2 | 33.3 |
Somewhat important | 7 | 50.0 | 5 | 62.5 | 2 | 33.3 |
Very important | 4 | 28.6 | 2 | 25.0 | 2 | 33.3 |
Total | 14 | 100 | 8 | 100 | 6 | 100 |
2. As a result of the yield curve flattening, my bank chose to cut back on its fixed rate lending
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 4 | 28.6 | 2 | 28.6 | 2 | 28.6 |
Somewhat important | 8 | 57.1 | 4 | 57.1 | 4 | 57.1 |
Very important | 2 | 14.3 | 1 | 14.3 | 1 | 14.3 |
Total | 14 | 100 | 7 | 100 | 7 | 100 |
3. As a result of the yield curve flattening, my bank chose to cut back on its floating rate lending
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 15 | 100.0 | 8 | 100.0 | 7 | 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 | 15 | 100 | 8 | 100 | 7 | 100 |
4. As a result of the flattening of the yield curve, my bank's risk tolerance decreased
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 9 | 64.3 | 4 | 57.1 | 5 | 71.4 |
Somewhat important | 4 | 28.6 | 2 | 28.6 | 2 | 28.6 |
Very important | 1 | 7.1 | 1 | 14.3 | 0 | 0.0 |
Total | 14 | 100 | 7 | 100 | 7 | 100 |
5. My bank interpreted the flattening of the yield curve as signaling a less favorable or more uncertain economic outlook
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 4 | 25.0 | 2 | 22.2 | 2 | 28.6 |
Somewhat important | 11 | 68.8 | 7 | 77.8 | 4 | 57.1 |
Very important | 1 | 6.2 | 0 | 0.0 | 1 | 14.3 |
Total | 16 | 100 | 9 | 100 | 7 | 100 |
6. My bank interpreted the flattening of the yield curve as likely being followed by a deterioration in the quality of my bank's existing loan portfolio
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 7 | 46.7 | 3 | 37.5 | 4 | 57.1 |
Somewhat important | 8 | 53.3 | 5 | 62.5 | 3 | 42.9 |
Very important | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 15 | 100 | 8 | 100 | 7 | 100 |
7. As a result of the flattening of the yield curve, my bank experienced less aggressive competition from other banks or nonbank lenders
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 14 | 100.0 | 7 | 100.0 | 7 | 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 | 14 | 100 | 7 | 100 | 7 | 100 |
8. As a result of the flattening of the yield curve, the resale value of loans in the secondary market became lower or more uncertain
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 13 | 81.2 | 6 | 66.7 | 7 | 100.0 |
Somewhat important | 2 | 12.5 | 2 | 22.2 | 0 | 0.0 |
Very important | 1 | 6.2 | 1 | 11.1 | 0 | 0.0 |
Total | 16 | 100 | 9 | 100 | 7 | 100 |
B. Possible reasons why my bank's credit standards or price terms are currently easier than they would have been had the yield curve not flattened
1. Relative to my bank's cost of funds, the lending categories for which my bank eased its credit policies became more profitable
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 7 | 87.5 | 3 | 75.0 | 4 | 100.0 |
Somewhat important | 1 | 12.5 | 1 | 25.0 | 0 | 0.0 |
Very important | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 8 | 100 | 4 | 100 | 4 | 100 |
2. As a result of the yield curve flattening, my bank chose to cut back on its fixed rate lending
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 8 | 100.0 | 4 | 100.0 | 4 | 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 | 8 | 100 | 4 | 100 | 4 | 100 |
3. As a result of the yield curve flattening, my bank chose to cut back on its floating rate lending
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 5 | 62.5 | 3 | 75.0 | 2 | 50.0 |
Somewhat important | 2 | 25.0 | 1 | 25.0 | 1 | 25.0 |
Very important | 1 | 12.5 | 0 | 0.0 | 1 | 25.0 |
Total | 8 | 100 | 4 | 100 | 4 | 100 |
4. As a result of the flattening of the yield curve, my bank's risk tolerance decreased
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 8 | 100.0 | 4 | 100.0 | 4 | 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 | 8 | 100 | 4 | 100 | 4 | 100 |
5. My bank interpreted the flattening of the yield curve as signaling a less favorable or more uncertain economic outlook
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 7 | 87.5 | 3 | 75.0 | 4 | 100.0 |
Somewhat important | 1 | 12.5 | 1 | 25.0 | 0 | 0.0 |
Very important | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 8 | 100 | 4 | 100 | 4 | 100 |
6. My bank interpreted the flattening of the yield curve as likely being followed by a deterioration in the quality of my bank's existing loan portfolio
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 7 | 87.5 | 3 | 75.0 | 4 | 100.0 |
Somewhat important | 1 | 12.5 | 1 | 25.0 | 0 | 0.0 |
Very important | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 8 | 100 | 4 | 100 | 4 | 100 |
7. As a result of the flattening of the yield curve, my bank experienced less aggressive competition from other banks or nonbank lenders
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 1 | 11.1 | 1 | 25.0 | 0 | 0.0 |
Somewhat important | 3 | 33.3 | 1 | 25.0 | 2 | 40.0 |
Very important | 5 | 55.6 | 2 | 50.0 | 3 | 60.0 |
Total | 9 | 100 | 4 | 100 | 5 | 100 |
8. As a result of the flattening of the yield curve, the resale value of loans in the secondary market became lower or more uncertain
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 8 | 100.0 | 4 | 100.0 | 4 | 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 | 8 | 100 | 4 | 100 | 4 | 100 |
31. How would that hypothetical moderate inversion of the yield curve over the next year likely affect your current credit standards and price terms for the following loan categories? (Please consider the hypothetical effects of the inverted yield curve on your bank's credit policies independent of other factors that may also be expected to influence those policies.)
A. Were the yield curve to experience a moderate inversion over the next year, my bank's credit standards for:
a. C&I loans or credit lines would likely:
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Tighten substantially | 2 | 3.1 | 1 | 2.4 | 1 | 4.3 |
Tighten somewhat | 24 | 36.9 | 16 | 38.1 | 8 | 34.8 |
Remain basically unchanged | 39 | 60.0 | 25 | 59.5 | 14 | 60.9 |
Ease somewhat | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Ease substantially | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 65 | 100 | 42 | 100 | 23 | 100 |
b. Loans or credit lines secured by commercial real estate (CRE loans) would likely:
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Tighten substantially | 2 | 3.1 | 1 | 2.4 | 1 | 4.3 |
Tighten somewhat | 29 | 44.6 | 21 | 50.0 | 8 | 34.8 |
Remain basically unchanged | 34 | 52.3 | 20 | 47.6 | 14 | 60.9 |
Ease somewhat | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Ease substantially | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 65 | 100 | 42 | 100 | 23 | 100 |
c. Loans or credit lines secured by residential real estate (RRE loans) would likely:
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Tighten substantially | 1 | 1.7 | 1 | 2.8 | 0 | 0.0 |
Tighten somewhat | 19 | 32.8 | 14 | 38.9 | 5 | 22.7 |
Remain basically unchanged | 37 | 63.8 | 20 | 55.6 | 17 | 77.3 |
Ease somewhat | 1 | 1.7 | 1 | 2.8 | 0 | 0.0 |
Ease substantially | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 58 | 100 | 36 | 100 | 22 | 100 |
d. Credit card loans or lines of credit would likely:
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Tighten substantially | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Tighten somewhat | 14 | 31.1 | 11 | 35.5 | 3 | 21.4 |
Remain basically unchanged | 31 | 68.9 | 20 | 64.5 | 11 | 78.6 |
Ease somewhat | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Ease substantially | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 45 | 100 | 31 | 100 | 14 | 100 |
e. Auto loans or lines of credit would likely:
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Tighten substantially | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Tighten somewhat | 13 | 26.0 | 10 | 34.5 | 3 | 14.3 |
Remain basically unchanged | 37 | 74.0 | 19 | 65.5 | 18 | 85.7 |
Ease somewhat | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Ease substantially | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 50 | 100 | 29 | 100 | 21 | 100 |
B. Were the yield curve to experience a moderate inversion over the next year, my bank's price terms for:
a. C&I loans or credit lines would likely:
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Tighten substantially | 1 | 1.6 | 1 | 2.5 | 0 | 0.0 |
Tighten somewhat | 18 | 28.6 | 11 | 27.5 | 7 | 30.4 |
Remain basically unchanged | 42 | 66.7 | 28 | 70.0 | 14 | 60.9 |
Ease somewhat | 2 | 3.2 | 0 | 0.0 | 2 | 8.7 |
Ease substantially | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 63 | 100 | 40 | 100 | 23 | 100 |
b. Loans or credit lines secured by commercial real estate (CRE loans) would likely:
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Tighten substantially | 2 | 3.1 | 1 | 2.4 | 1 | 4.3 |
Tighten somewhat | 21 | 32.8 | 14 | 34.1 | 7 | 30.4 |
Remain basically unchanged | 39 | 60.9 | 25 | 61.0 | 14 | 60.9 |
Ease somewhat | 2 | 3.1 | 1 | 2.4 | 1 | 4.3 |
Ease substantially | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 64 | 100 | 41 | 100 | 23 | 100 |
c. Loans or credit lines secured by residential real estate (RRE loans) would likely:
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Tighten substantially | 2 | 3.4 | 1 | 2.9 | 1 | 4.3 |
Tighten somewhat | 18 | 31.0 | 12 | 34.3 | 6 | 26.1 |
Remain basically unchanged | 37 | 63.8 | 21 | 60.0 | 16 | 69.6 |
Ease somewhat | 1 | 1.7 | 1 | 2.9 | 0 | 0.0 |
Ease substantially | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 58 | 100 | 35 | 100 | 23 | 100 |
d. Credit card loans or lines of credit would likely:
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Tighten substantially | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Tighten somewhat | 10 | 22.2 | 7 | 22.6 | 3 | 21.4 |
Remain basically unchanged | 35 | 77.8 | 24 | 77.4 | 11 | 78.6 |
Ease somewhat | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Ease substantially | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 45 | 100 | 31 | 100 | 14 | 100 |
e. Auto loans or lines of credit would likely:
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Tighten substantially | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Tighten somewhat | 14 | 28.0 | 10 | 34.5 | 4 | 19.0 |
Remain basically unchanged | 36 | 72.0 | 19 | 65.5 | 17 | 81.0 |
Ease somewhat | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Ease substantially | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 50 | 100 | 29 | 100 | 21 | 100 |
32. To the extent that your bank would likely change its credit standards or price terms in response to a moderate inversion of the yield curve over the next year, what would likely be the most important reasons for the changes? (Please respond to A if you indicated a tightening in standards or terms in responding to any of the preceding questions in Question 31, B if you indicated an easing in standards or terms in responding to any of the preceding questions in Question 31, or both, as appropriate).
A. Possible reasons my bank would expect to tighten its credit standards or price terms in response to a moderate inversion of the yield curve over the next year
1. Relative to my bank's cost of funds, the lending categories for which my bank would tighten its credit policies would become less profitable
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 11 | 34.4 | 6 | 28.6 | 5 | 45.5 |
Somewhat important | 12 | 37.5 | 9 | 42.9 | 3 | 27.3 |
Very important | 9 | 28.1 | 6 | 28.6 | 3 | 27.3 |
Total | 32 | 100 | 21 | 100 | 11 | 100 |
2. As a result of a moderate inversion of the yield curve over the next year, my bank would choose to cut back on its fixed rate lending
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 17 | 56.7 | 12 | 63.2 | 5 | 45.5 |
Somewhat important | 9 | 30.0 | 6 | 31.6 | 3 | 27.3 |
Very important | 4 | 13.3 | 1 | 5.3 | 3 | 27.3 |
Total | 30 | 100 | 19 | 100 | 11 | 100 |
3. As a result of a moderate inversion of the yield curve over the next year, my bank would choose to cut back on its floating rate lending
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 27 | 90.0 | 19 | 100.0 | 8 | 72.7 |
Somewhat important | 2 | 6.7 | 0 | 0.0 | 2 | 18.2 |
Very important | 1 | 3.3 | 0 | 0.0 | 1 | 9.1 |
Total | 30 | 100 | 19 | 100 | 11 | 100 |
4. As a result of a moderate inversion of the yield curve over the next year, my bank's risk tolerance would decrease
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 5 | 16.7 | 4 | 21.1 | 1 | 9.1 |
Somewhat important | 20 | 66.7 | 10 | 52.6 | 10 | 90.9 |
Very important | 5 | 16.7 | 5 | 26.3 | 0 | 0.0 |
Total | 30 | 100 | 19 | 100 | 11 | 100 |
5. My bank would interpret a moderate inversion of the yield curve over the next year as signaling a less favorable or more uncertain economic outlook
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 1 | 3.1 | 1 | 4.8 | 0 | 0.0 |
Somewhat important | 18 | 56.2 | 11 | 52.4 | 7 | 63.6 |
Very important | 13 | 40.6 | 9 | 42.9 | 4 | 36.4 |
Total | 32 | 100 | 21 | 100 | 11 | 100 |
6. My bank would interpret a moderate inversion of the yield curve over the next year as likely being followed by a deterioration in the quality of my bank's existing loan portfolio
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 3 | 9.4 | 2 | 9.5 | 1 | 9.1 |
Somewhat important | 22 | 68.8 | 13 | 61.9 | 9 | 81.8 |
Very important | 7 | 21.9 | 6 | 28.6 | 1 | 9.1 |
Total | 32 | 100 | 21 | 100 | 11 | 100 |
7. As a result of a moderate inversion of the yield curve over the next year, my bank would experience less aggressive competition from other banks or nonbank lenders
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 21 | 67.7 | 11 | 55.0 | 10 | 90.9 |
Somewhat important | 9 | 29.0 | 8 | 40.0 | 1 | 9.1 |
Very important | 1 | 3.2 | 1 | 5.0 | 0 | 0.0 |
Total | 31 | 100 | 20 | 100 | 11 | 100 |
8. As a result of a moderate inversion of the yield curve over the next year, the resale value of loans in the secondary market would become lower or more uncertain
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 20 | 64.5 | 13 | 65.0 | 7 | 63.6 |
Somewhat important | 10 | 32.3 | 6 | 30.0 | 4 | 36.4 |
Very important | 1 | 3.2 | 1 | 5.0 | 0 | 0.0 |
Total | 31 | 100 | 20 | 100 | 11 | 100 |
B. Possible reasons my bank would ease its credit standards or price terms in response to a moderate inversion of the yield curve over the next year
1. Relative to my bank's cost of funds, the lending categories for which my bank would ease its credit policies would become more profitable
Responses are not reported when the number of respondents is 3 or fewer.
2. As a result of a moderate inversion of the yield cover over the next year, my bank would choose to increase its fixed rate lending
Responses are not reported when the number of respondents is 3 or fewer.
3. As a result of a moderate inversion of the yield cover over the next year, my bank would choose to increase its floating rate lending
Responses are not reported when the number of respondents is 3 or fewer.
4. As a result of a moderate inversion of the yield cover over the next year, my bank's risk tolerance would increase
Responses are not reported when the number of respondents is 3 or fewer.
5. My bank would interpret a moderate inversion of the yield curve over the next year as signaling a more favorable or less uncertain economic outlook
Responses are not reported when the number of respondents is 3 or fewer.
6. My bank would interpret a moderate inversion of the yield over the next year as likely being followed by an improvement in the quality of my bank's existing loan portfolio
Responses are not reported when the number of respondents is 3 or fewer.
7. As a result of a moderate inversion of the yield curve over the next year, my bank would experience more aggressive competition from other banks or nonbank lenders
Responses are not reported when the number of respondents is 3 or fewer.
8. As a result of a moderate inversion of the yield curve over the next year, the resale value of loans in the secondary market would become higher or less uncertain
All Respondents | Large Banks | Other Banks | ||||
---|---|---|---|---|---|---|
Banks | Percent | Banks | Percent | Banks | Percent | |
Not important | 3 | 75.0 | 1 | 50.0 | 2 | 100.0 |
Somewhat important | 1 | 25.0 | 1 | 50.0 | 0 | 0.0 |
Very important | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
Total | 4 | 100 | 2 | 100 | 2 | 100 |
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 June 30, 2018. The combined assets of the 46 large banks totaled $10.2 trillion, compared to $10.5 trillion for the entire panel of 70 banks, and $14.8 trillion for all domestically chartered, federally insured commercial banks. Return to text