Senior Loan Officer Opinion Survey on Bank Lending Practices
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Senior Loan Officer Opinion Survey on Bank Lending Practices at Selected Branches and Agencies of Foreign Banks in the United States 1
(Status of Policy as of April 2024)
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 - changed?
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Tightened considerably | 0 | 0.0 |
| Tightened somewhat | 3 | 15.0 |
| Remained basically unchanged | 16 | 80.0 |
| Eased somewhat | 1 | 5.0 |
| Eased considerably | 0 | 0.0 |
| Total | 20 | 100 |
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?
a. Maximum size of credit lines
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Tightened considerably | 0 | 0.0 |
| Tightened somewhat | 1 | 5.0 |
| Remained basically unchanged | 19 | 95.0 |
| Eased somewhat | 0 | 0.0 |
| Eased considerably | 0 | 0.0 |
| Total | 20 | 100 |
b. Maximum maturity of loans or credit lines
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Tightened considerably | 0 | 0.0 |
| Tightened somewhat | 1 | 5.0 |
| Remained basically unchanged | 19 | 95.0 |
| Eased somewhat | 0 | 0.0 |
| Eased considerably | 0 | 0.0 |
| Total | 20 | 100 |
c. Costs of credit lines
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Tightened considerably | 0 | 0.0 |
| Tightened somewhat | 3 | 15.0 |
| Remained basically unchanged | 16 | 80.0 |
| Eased somewhat | 1 | 5.0 |
| Eased considerably | 0 | 0.0 |
| Total | 20 | 100 |
d. Spreads of loan rates over your bank's cost of funds (wider spreads=tightened, narrower spreads=eased)
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Tightened considerably | 0 | 0.0 |
| Tightened somewhat | 3 | 15.0 |
| Remained basically unchanged | 16 | 80.0 |
| Eased somewhat | 1 | 5.0 |
| Eased considerably | 0 | 0.0 |
| Total | 20 | 100 |
e. Premiums charged on riskier loans
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Tightened considerably | 0 | 0.0 |
| Tightened somewhat | 4 | 21.1 |
| Remained basically unchanged | 12 | 63.2 |
| Eased somewhat | 3 | 15.8 |
| Eased considerably | 0 | 0.0 |
| Total | 19 | 100 |
f. Loan covenants
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Tightened considerably | 0 | 0.0 |
| Tightened somewhat | 2 | 10.5 |
| Remained basically unchanged | 17 | 89.5 |
| Eased somewhat | 0 | 0.0 |
| Eased considerably | 0 | 0.0 |
| Total | 19 | 100 |
g. Collateralization requirements
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Tightened considerably | 0 | 0.0 |
| Tightened somewhat | 0 | 0.0 |
| Remained basically unchanged | 18 | 100.0 |
| Eased somewhat | 0 | 0.0 |
| Eased considerably | 0 | 0.0 |
| Total | 18 | 100 |
h. Use of interest rate floors (more use=tightened, less use=eased)
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Tightened considerably | 0 | 0.0 |
| Tightened somewhat | 0 | 0.0 |
| Remained basically unchanged | 20 | 100.0 |
| Eased somewhat | 0 | 0.0 |
| Eased considerably | 0 | 0.0 |
| Total | 20 | 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
Responses are not reported when the number of respondents is 3 or fewer.
b. Less favorable or more uncertain economic outlook
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Not Important | 0 | 0.0 |
| Somewhat Important | 4 | 80.0 |
| Very Important | 1 | 20.0 |
| Total | 5 | 100 |
c. Worsening of industry-specific problems. (please specify industries)
Responses are not reported when the number of respondents is 3 or fewer.
d. Less aggressive competition from other banks or nonbank lenders (other financial intermediaries or the capital markets)
Responses are not reported when the number of respondents is 3 or fewer.
e. Reduced tolerance for risk
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Not Important | 0 | 0.0 |
| Somewhat Important | 4 | 100.0 |
| Very Important | 0 | 0.0 |
| Total | 4 | 100 |
f. Decreased liquidity in the secondary market for these loans
Responses are not reported when the number of respondents is 3 or fewer.
g. Deterioration in your bank's current or expected liquidity position
Responses are not reported when the number of respondents is 3 or fewer.
h. Increased concerns about the effects of legislative changes, supervisory actions, or accounting standards
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Not Important | 1 | 25.0 |
| Somewhat Important | 2 | 50.0 |
| Very Important | 1 | 25.0 |
| Total | 4 | 100 |
B. Possible reasons for easing credit standards or loan terms:
a. Improvement in your bank's current or expected capital position
Responses are not reported when the number of respondents is 3 or fewer.
b. More favorable or less uncertain economic outlook
Responses are not reported when the number of respondents is 3 or fewer.
c. Improvement in industry-specific problems (please specify industries)
Responses are not reported when the number of respondents is 3 or fewer.
d. More aggressive competition from other banks or nonbank lenders (other financial intermediaries or the capital markets)
Responses are not reported when the number of respondents is 3 or fewer.
e. Increased tolerance for risk
Responses are not reported when the number of respondents is 3 or fewer.
f. Increased liquidity in the secondary market for these loans
Responses are not reported when the number of respondents is 3 or fewer.
g. Improvement in your bank's current or expected liquidity position
Responses are not reported when the number of respondents is 3 or fewer.
h. Reduced concerns about the effects of legislative changes, supervisory actions, or accounting standards
Responses are not reported when the number of respondents is 3 or fewer.
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.)
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Substantially stronger | 0 | 0.0 |
| Moderately stronger | 3 | 15.0 |
| About the same | 16 | 80.0 |
| Moderately weaker | 1 | 5.0 |
| Substantially weaker | 0 | 0.0 |
| Total | 20 | 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 4), possible reasons:
a. Customer inventory financing needs increased
Responses are not reported when the number of respondents is 3 or fewer.
b. Customer accounts receivable financing needs increased
Responses are not reported when the number of respondents is 3 or fewer.
c. Customer investment in plant or equipment increased
Responses are not reported when the number of respondents is 3 or fewer.
d. Customer internally generated funds decreased
Responses are not reported when the number of respondents is 3 or fewer.
e. Customer merger or acquisition financing needs increased
Responses are not reported when the number of respondents is 3 or fewer.
f. Customer borrowing shifted to your bank from other bank or nonbank sources because these other sources became less attractive
Responses are not reported when the number of respondents is 3 or fewer.
g. Customer precautionary demand for cash and liquidity increased
Responses are not reported when the number of respondents is 3 or fewer.
B. If weaker loan demand (answer 4 or 5 to question 4), possible reasons:
a. Customer inventory financing needs decreased
Responses are not reported when the number of respondents is 3 or fewer.
b. Customer accounts receivable financing needs decreased
Responses are not reported when the number of respondents is 3 or fewer.
c. Customer investment in plant or equipment decreased
Responses are not reported when the number of respondents is 3 or fewer.
d. Customer internally generated funds increased
Responses are not reported when the number of respondents is 3 or fewer.
e. Customer merger or acquisition financing needs decreased
Responses are not reported when the number of respondents is 3 or fewer.
f. Customer borrowing shifted from your bank to other bank or nonbank sources because these other sources became more attractive
Responses are not reported when the number of respondents is 3 or fewer.
g. Customer precautionary demand for cash and liquidity decreased
Responses are not reported when the number of respondents is 3 or fewer.
6. At your bank, apart from normal 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 | ||
|---|---|---|
| Banks | Percent | |
| The number of inquiries has increased substantially | 0 | 0.0 |
| The number of inquiries has increased moderately | 3 | 15.8 |
| The number of inquiries has stayed about the same | 15 | 78.9 |
| The number of inquiries has decreased moderately | 1 | 5.3 |
| The number of inquiries has decreased substantially | 0 | 0.0 |
| Total | 19 | 100 |
Questions 7-8 ask about commercial real estate (CRE) loans at your bank, including construction and land development loans and loans secured by nonfarm nonresidential properties. Question 7 deals with changes in your bank's standards over the past three months. Question 8 deals with changes in demand. If your bank's lending standards or terms have not changed over the relevant period, please report them as unchanged even if they are either restrictive or accommodative relative to longer-term norms. If your bank's standards or terms have tightened or eased over the relevant period, please so report them regardless of how they stand relative to longer-term norms. Also, please report changes in enforcement of existing standards as changes in standards.
7. Over the past three months, how have your bank's credit standards for approving applications for CRE loans or credit lines changed?
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Tightened considerably | 1 | 6.2 |
| Tightened somewhat | 4 | 25.0 |
| Remained basically unchanged | 11 | 68.8 |
| Eased somewhat | 0 | 0.0 |
| Eased considerably | 0 | 0.0 |
| Total | 16 | 100 |
For this question, 4 respondents answered "My bank does not originate CRE loans."
8. Apart from normal seasonal variation, how has demand for CRE loans or credit lines 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 | ||
|---|---|---|
| Banks | Percent | |
| Substantially stronger | 0 | 0.0 |
| Moderately stronger | 3 | 18.8 |
| About the same | 11 | 68.8 |
| Moderately weaker | 2 | 12.5 |
| Substantially weaker | 0 | 0.0 |
| Total | 16 | 100 |
Questions 9-12 ask how your bank has changed its lending policies over the past year for three different types of commercial real estate (CRE) loans: construction and land development loans, loans secured by nonfarm nonresidential properties, and loans secured by multifamily residential properties. Question 13 asks about changes in demand for CRE loans over the past year.
9. Over the past year, how has your bank changed the following policies on construction and land development loans?
a. Maximum loan size
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Tightened considerably | 1 | 10.0 |
| Tightened somewhat | 1 | 10.0 |
| Remained basically unchanged | 8 | 80.0 |
| Eased somewhat | 0 | 0.0 |
| Eased considerably | 0 | 0.0 |
| Total | 10 | 100 |
b. Maximum loan maturity
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Tightened considerably | 1 | 10.0 |
| Tightened somewhat | 1 | 10.0 |
| Remained basically unchanged | 8 | 80.0 |
| Eased somewhat | 0 | 0.0 |
| Eased considerably | 0 | 0.0 |
| Total | 10 | 100 |
c. Spread of loan rates over your bank's cost of funds (wider spreads=tightened, narrower spreads=eased)
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Tightened considerably | 1 | 10.0 |
| Tightened somewhat | 1 | 10.0 |
| Remained basically unchanged | 6 | 60.0 |
| Eased somewhat | 2 | 20.0 |
| Eased considerably | 0 | 0.0 |
| Total | 10 | 100 |
d. Loan-to-value ratios (lower ratios=tightened, higher ratios=eased)
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Tightened considerably | 1 | 10.0 |
| Tightened somewhat | 3 | 30.0 |
| Remained basically unchanged | 6 | 60.0 |
| Eased somewhat | 0 | 0.0 |
| Eased considerably | 0 | 0.0 |
| Total | 10 | 100 |
e. Debt service coverage ratios (higher ratios=tightened, lower ratios=eased)
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Tightened considerably | 1 | 10.0 |
| Tightened somewhat | 2 | 20.0 |
| Remained basically unchanged | 7 | 70.0 |
| Eased somewhat | 0 | 0.0 |
| Eased considerably | 0 | 0.0 |
| Total | 10 | 100 |
f. Market areas served (reduced market areas=tightened, expanded market areas=eased)
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Tightened considerably | 0 | 0.0 |
| Tightened somewhat | 2 | 20.0 |
| Remained basically unchanged | 8 | 80.0 |
| Eased somewhat | 0 | 0.0 |
| Eased considerably | 0 | 0.0 |
| Total | 10 | 100 |
g. Length of interest-only payment period (shorter interest-only periods=tightened, longer interest-only periods=eased)
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Tightened considerably | 0 | 0.0 |
| Tightened somewhat | 1 | 10.0 |
| Remained basically unchanged | 9 | 90.0 |
| Eased somewhat | 0 | 0.0 |
| Eased considerably | 0 | 0.0 |
| Total | 10 | 100 |
For this question, 10 respondents answered "My bank does not originate construction and land development loans"
10. Over the past year, how has your bank changed the following policies on loans secured by nonfarm nonresidential properties?
a. Maximum loan size
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Tightened considerably | 0 | 0.0 |
| Tightened somewhat | 1 | 10.0 |
| Remained basically unchanged | 9 | 90.0 |
| Eased somewhat | 0 | 0.0 |
| Eased considerably | 0 | 0.0 |
| Total | 10 | 100 |
b. Maximum loan maturity
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Tightened considerably | 0 | 0.0 |
| Tightened somewhat | 1 | 10.0 |
| Remained basically unchanged | 9 | 90.0 |
| Eased somewhat | 0 | 0.0 |
| Eased considerably | 0 | 0.0 |
| Total | 10 | 100 |
c. Spread of loan rates over your bank's cost of funds (wider spreads=tightened, narrower spreads=eased)
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Tightened considerably | 0 | 0.0 |
| Tightened somewhat | 2 | 20.0 |
| Remained basically unchanged | 7 | 70.0 |
| Eased somewhat | 1 | 10.0 |
| Eased considerably | 0 | 0.0 |
| Total | 10 | 100 |
d. Loan-to-value ratios (lower ratios=tightened, higher ratios=eased)
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Tightened considerably | 0 | 0.0 |
| Tightened somewhat | 4 | 40.0 |
| Remained basically unchanged | 6 | 60.0 |
| Eased somewhat | 0 | 0.0 |
| Eased considerably | 0 | 0.0 |
| Total | 10 | 100 |
e. Debt service coverage ratios (higher ratios=tightened, lower ratios=eased)
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Tightened considerably | 0 | 0.0 |
| Tightened somewhat | 3 | 30.0 |
| Remained basically unchanged | 7 | 70.0 |
| Eased somewhat | 0 | 0.0 |
| Eased considerably | 0 | 0.0 |
| Total | 10 | 100 |
f. Market areas served (reduced market areas=tightened, expanded market areas=eased)
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Tightened considerably | 0 | 0.0 |
| Tightened somewhat | 1 | 10.0 |
| Remained basically unchanged | 9 | 90.0 |
| Eased somewhat | 0 | 0.0 |
| Eased considerably | 0 | 0.0 |
| Total | 10 | 100 |
g. Length of interest-only payment period (shorter interest-only periods=tightened, longer interest-only periods=eased)
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Tightened considerably | 0 | 0.0 |
| Tightened somewhat | 1 | 10.0 |
| Remained basically unchanged | 9 | 90.0 |
| Eased somewhat | 0 | 0.0 |
| Eased considerably | 0 | 0.0 |
| Total | 10 | 100 |
For this question, 8 respondents answered "My bank does not originate nonfarm-nonresidential loans"
11. Over the past year, how has your bank changed the following policies on loans secured by multifamily residential properties?
a. Maximum loan size
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Tightened considerably | 0 | 0.0 |
| Tightened somewhat | 2 | 16.7 |
| Remained basically unchanged | 10 | 83.3 |
| Eased somewhat | 0 | 0.0 |
| Eased considerably | 0 | 0.0 |
| Total | 12 | 100 |
b. Maximum loan maturity
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Tightened considerably | 0 | 0.0 |
| Tightened somewhat | 2 | 15.4 |
| Remained basically unchanged | 11 | 84.6 |
| Eased somewhat | 0 | 0.0 |
| Eased considerably | 0 | 0.0 |
| Total | 13 | 100 |
c. Spread of loan rates over your bank's cost of funds (wider spreads=tightened, narrower spreads=eased)
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Tightened considerably | 0 | 0.0 |
| Tightened somewhat | 3 | 23.1 |
| Remained basically unchanged | 9 | 69.2 |
| Eased somewhat | 1 | 7.7 |
| Eased considerably | 0 | 0.0 |
| Total | 13 | 100 |
d. Loan-to-value ratios (lower ratios=tightened, higher ratios=eased)
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Tightened considerably | 0 | 0.0 |
| Tightened somewhat | 6 | 46.2 |
| Remained basically unchanged | 7 | 53.8 |
| Eased somewhat | 0 | 0.0 |
| Eased considerably | 0 | 0.0 |
| Total | 13 | 100 |
e. Debt service coverage ratios (higher ratios=tightened, lower ratios=eased)
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Tightened considerably | 0 | 0.0 |
| Tightened somewhat | 3 | 23.1 |
| Remained basically unchanged | 10 | 76.9 |
| Eased somewhat | 0 | 0.0 |
| Eased considerably | 0 | 0.0 |
| Total | 13 | 100 |
f. Market areas served (reduced market areas=tightened, expanded market areas=eased)
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Tightened considerably | 0 | 0.0 |
| Tightened somewhat | 1 | 7.7 |
| Remained basically unchanged | 12 | 92.3 |
| Eased somewhat | 0 | 0.0 |
| Eased considerably | 0 | 0.0 |
| Total | 13 | 100 |
g. Length of interest-only payment period (shorter interest-only periods=tightened, longer interest-only periods=eased)
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Tightened considerably | 0 | 0.0 |
| Tightened somewhat | 1 | 7.7 |
| Remained basically unchanged | 12 | 92.3 |
| Eased somewhat | 0 | 0.0 |
| Eased considerably | 0 | 0.0 |
| Total | 13 | 100 |
For this question, 7 respondents answered "My bank does not originate multifamily loans"
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 the following possible reasons been for the change? (Please respond to either A, B, or both as appropriate.)
A. Possible reasons for tightening credit policies on CRE loans over the past year:
a. Less favorable or more uncertain outlook for CRE property prices
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Not important | 0 | 0.0 |
| Somewhat important | 4 | 66.7 |
| Very important | 2 | 33.3 |
| Total | 6 | 100 |
b. Less favorable or more uncertain outlook for market rents on CRE properties
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Not important | 0 | 0.0 |
| Somewhat important | 3 | 60.0 |
| Very important | 2 | 40.0 |
| Total | 5 | 100 |
c. Less favorable or more uncertain outlook for vacancy rates on CRE properties
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Not important | 0 | 0.0 |
| Somewhat important | 3 | 60.0 |
| Very important | 2 | 40.0 |
| Total | 5 | 100 |
d. Less favorable or more uncertain outlook for delinquency rates on mortgages backed by CRE properties
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Not important | 1 | 20.0 |
| Somewhat important | 3 | 60.0 |
| Very important | 1 | 20.0 |
| Total | 5 | 100 |
e. Less aggressive competition from other banks or nonbank financial institutions (other financial intermediaries or the capital markets)
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Not important | 4 | 100.0 |
| Somewhat important | 0 | 0.0 |
| Very important | 0 | 0.0 |
| Total | 4 | 100 |
f. Reduced tolerance for risk
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Not important | 1 | 20.0 |
| Somewhat important | 3 | 60.0 |
| Very important | 1 | 20.0 |
| Total | 5 | 100 |
g. Decreased ability to securitize CRE loans
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Not important | 4 | 80.0 |
| Somewhat important | 1 | 20.0 |
| Very important | 0 | 0.0 |
| Total | 5 | 100 |
h. Increased concerns about my bank's capital adequacy or liquidity position
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Not important | 4 | 100.0 |
| Somewhat important | 0 | 0.0 |
| Very important | 0 | 0.0 |
| Total | 4 | 100 |
i. Increased concerns about the effects of regulatory changes or supervisory actions
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Not important | 2 | 50.0 |
| Somewhat important | 1 | 25.0 |
| Very important | 1 | 25.0 |
| Total | 4 | 100 |
B. Possible reasons for easing credit policies on CRE loans over the past year:
a. More favorable or less uncertain outlook for CRE property prices
Responses are not reported when the number of respondents is 3 or fewer.
b. More favorable or less uncertain outlook for market rents on CRE properties
Responses are not reported when the number of respondents is 3 or fewer.
c. More favorable or less uncertain outlook for vacancy rates on CRE properties
Responses are not reported when the number of respondents is 3 or fewer.
d. More favorable or less uncertain outlook for delinquency rates on mortgages backed by CRE properties
Responses are not reported when the number of respondents is 3 or fewer.
e. More aggressive competition from other banks or nonbank financial institutions (other financial intermediaries or the capital markets)
Responses are not reported when the number of respondents is 3 or fewer.
f. Increased tolerance for risk
Responses are not reported when the number of respondents is 3 or fewer.
g. Increased ability to securitize CRE loans
Responses are not reported when the number of respondents is 3 or fewer.
h. Reduced concerns about my bank's capital adequacy or liquidity position
Responses are not reported when the number of respondents is 3 or fewer.
i. Reduced concerns about the effects of regulatory changes or supervisory actions
Responses are not reported when the number of respondents is 3 or fewer.
13. If demand for CRE loans from your bank has strengthened or weakened over the past year, how important have the following possible reasons been for the change? (Please respond to either A, B, or both as appropriate.)
A. Possible reasons for stronger CRE loan demand over the past year:
a. Customer acquisition or development of properties increased
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Not important | 3 | 75.0 |
| Somewhat important | 1 | 25.0 |
| Very important | 0 | 0.0 |
| Total | 4 | 100 |
b. Customer outlook for rental demand became more favorable or less uncertain
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Not important | 3 | 75.0 |
| Somewhat important | 1 | 25.0 |
| Very important | 0 | 0.0 |
| Total | 4 | 100 |
c. General level of interest rates decreased
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Not important | 3 | 75.0 |
| Somewhat important | 1 | 25.0 |
| Very important | 0 | 0.0 |
| Total | 4 | 100 |
d. Customer internally generated funds decreased
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Not important | 4 | 100.0 |
| Somewhat important | 0 | 0.0 |
| Very important | 0 | 0.0 |
| Total | 4 | 100 |
e. Customer borrowing shifted to your bank from other banks
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Not important | 4 | 100.0 |
| Somewhat important | 0 | 0.0 |
| Very important | 0 | 0.0 |
| Total | 4 | 100 |
f. Customer borrowing shifted to your bank from nonbank sources (e.g., CMBS, insurers, or debt funds)
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Not important | 4 | 100.0 |
| Somewhat important | 0 | 0.0 |
| Very important | 0 | 0.0 |
| Total | 4 | 100 |
g. Customer borrowing shifted to your bank from alternatives to CRE-backed funding (e.g., unsecured debt or internal funding)
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Not important | 4 | 100.0 |
| Somewhat important | 0 | 0.0 |
| Very important | 0 | 0.0 |
| Total | 4 | 100 |
h. Customer precautionary demand for cash and liquidity increased
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Not important | 3 | 75.0 |
| Somewhat important | 1 | 25.0 |
| Very important | 0 | 0.0 |
| Total | 4 | 100 |
B. Possible reasons for weaker CRE loan demand over the past year:
a. Customer acquisition or development of properties decreased
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Not important | 2 | 22.2 |
| Somewhat important | 5 | 55.6 |
| Very important | 2 | 22.2 |
| Total | 9 | 100 |
b. Customer outlook for rental demand became less favorable or more uncertain
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Not important | 3 | 37.5 |
| Somewhat important | 4 | 50.0 |
| Very important | 1 | 12.5 |
| Total | 8 | 100 |
c. General level of interest rates increased
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Not important | 0 | 0.0 |
| Somewhat important | 4 | 44.4 |
| Very important | 5 | 55.6 |
| Total | 9 | 100 |
d. Customer internally generated funds increased
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Not important | 7 | 77.8 |
| Somewhat important | 2 | 22.2 |
| Very important | 0 | 0.0 |
| Total | 9 | 100 |
e. Customer borrowing shifted from your bank to other banks
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Not important | 8 | 100.0 |
| Somewhat important | 0 | 0.0 |
| Very important | 0 | 0.0 |
| Total | 8 | 100 |
f. Customer borrowing shifted from your bank to nonbank sources (e.g., CMBS, insurers, or debt funds)
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Not important | 8 | 88.9 |
| Somewhat important | 1 | 11.1 |
| Very important | 0 | 0.0 |
| Total | 9 | 100 |
g. Customer borrowing shifted from your bank to alternatives to CRE-backed funding (e.g., unsecured debt or internal funding)
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Not important | 8 | 100.0 |
| Somewhat important | 0 | 0.0 |
| Very important | 0 | 0.0 |
| Total | 8 | 100 |
h. Customer precautionary demand for cash and liquidity decreased
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Not important | 7 | 87.5 |
| Somewhat important | 1 | 12.5 |
| Very important | 0 | 0.0 |
| Total | 8 | 100 |
1. As of December 31, 2023, the 20 respondents had combined assets of $1.7 trillion, compared to $3 trillion for all foreign-related banking institutions in the United States. The sample is selected from among the largest foreign-related banking institutions in those Federal Reserve Districts where such institutions are common. Return to text