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Senior Loan Officer Opinion Survey on Bank Lending Practices
July 2008

Survey | Full report (PDF)
Table 1 | Table 2 |Chart data
Table 1 (PDF) | Table 2 (PDF) | Charts (PDF)

Table 2

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 July 2008)

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
BanksPercent
Tightened considerably 2 9.5
Tightened somewhat 5 23.8
Remained basically unchanged 14 66.7
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 21 100.0

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?

 All Respondents
BanksPercent
Tightened considerably 2 9.5
Tightened somewhat 7 33.3
Remained basically unchanged 12 57.1
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 21 100.0
 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 5 23.8
Remained basically unchanged 16 76.2
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 21 100.0

 All Respondents
BanksPercent
Tightened considerably 1 4.8
Tightened somewhat 12 57.1
Remained basically unchanged 8 38.1
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 21 100.0
 All Respondents
BanksPercent
Tightened considerably 2 9.5
Tightened somewhat 11 52.4
Remained basically unchanged 8 38.1
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 21 100.0
 All Respondents
BanksPercent
Tightened considerably 3 14.3
Tightened somewhat 10 47.6
Remained basically unchanged 8 38.1
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 21 100.0
 All Respondents
BanksPercent
Tightened considerably 1 4.8
Tightened somewhat 9 42.9
Remained basically unchanged 11 52.4
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 21 100.0
 All Respondents
BanksPercent
Tightened considerably 1 5.0
Tightened somewhat 3 15.0
Remained basically unchanged 16 80.0
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 20 100.0

3. If your bank has tightened or eased its credit standards or its terms for C&I loans or credit lines over the past three months (as described in questions 1 and 2), how important have been the following possible reasons for the change?

 All Respondents
BanksPercent
Not important 5 35.7
Somewhat important 6 42.9
Very important 3 21.4
Total 14 100.0
 All Respondents
BanksPercent
Not important 0 0.0
Somewhat important 6 42.9
Very important 8 57.1
Total 14 100.0
 All Respondents
BanksPercent
Not important 4 28.6
Somewhat important 6 42.9
Very important 4 28.6
Total 14 100.0

 All Respondents
BanksPercent
Not important 5 35.7
Somewhat important 7 50.0
Very important 2 14.3
Total 14 100.0
 All Respondents
BanksPercent
Not important 3 21.4
Somewhat important 9 64.3
Very important 2 14.3
Total 14 100.0
 All Respondents
BanksPercent
Not important 3 21.4
Somewhat important 4 28.6
Very important 7 50.0
Total 14 100.0

 All Respondents
BanksPercent
Not important 5 35.7
Somewhat important 7 50.0
Very important 2 14.3
Total 14 100.0
 All Respondents
BanksPercent
Not important 9 69.2
Somewhat important 3 23.1
Very important 1 7.7
Total 13 100.0
 All Respondents
BanksPercent
Not important 0 -
Somewhat important 0 -
Very important 0 -
Total 0 -

 All Respondents
BanksPercent
Not important 0 -
Somewhat important 0 -
Very important 0 -
Total 0 -
 All Respondents
BanksPercent
Not important 0 -
Somewhat important 0 -
Very important 0 -
Total 0 -
 All Respondents
BanksPercent
Not important 0 -
Somewhat important 0 -
Very important 0 -
Total 0 -

 All Respondents
BanksPercent
Not important 0 -
Somewhat important 0 -
Very important 0 -
Total 0 -
 All Respondents
BanksPercent
Not important 0 -
Somewhat important 0 -
Very important 0 -
Total 0 -
 All Respondents
BanksPercent
Not important 0 -
Somewhat important 0 -
Very important 0 -
Total 0 -

 All Respondents
BanksPercent
Not important 0 -
Somewhat important 0 -
Very important 0 -
Total 0 -

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

 All Respondents
BanksPercent
Substantially stronger 0 0.0
Moderately stronger 2 9.5
About the same 12 57.1
Moderately weaker 7 33.3
Substantially weaker 0 0.0
Total 21 100.0

5. If demand for C&I loans has strengthened or weakened over the past three months (as described in question 4), how important have been the following possible reasons for the change?

 All Respondents
BanksPercent
Not important 0 0.0
Somewhat important 1 50.0
Very important 1 50.0
Total 2 100.0

 All Respondents
BanksPercent
Not important 0 0.0
Somewhat important 2 100.0
Very important 0 0.0
Total 2 100.0
 All Respondents
BanksPercent
Not important 0 0.0
Somewhat important 2 100.0
Very important 0 0.0
Total 2 100.0
 All Respondents
BanksPercent
Not important 0 0.0
Somewhat important 1 50.0
Very important 1 50.0
Total 2 100.0

 All Respondents
BanksPercent
Not important 0 0.0
Somewhat important 2 100.0
Very important 0 0.0
Total 2 100.0
 All Respondents
BanksPercent
Not important 0 0.0
Somewhat important 2 100.0
Very important 0 0.0
Total 2 100.0
 All Respondents
BanksPercent
Not important 5 71.4
Somewhat important 2 28.6
Very important 0 0.0
Total 7 100.0

 All Respondents
BanksPercent
Not important 5 71.4
Somewhat important 2 28.6
Very important 0 0.0
Total 7 100.0
 All Respondents
BanksPercent
Not important 3 42.9
Somewhat important 3 42.9
Very important 1 14.3
Total 7 100.0
 All Respondents
BanksPercent
Not important 3 50.0
Somewhat important 3 50.0
Very important 0 0.0
Total 6 100.0

 All Respondents
BanksPercent
Not important 2 28.6
Somewhat important 1 14.3
Very important 4 57.1
Total 7 100.0
 All Respondents
BanksPercent
Not important 6 100.0
Somewhat important 0 0.0
Very important 0 0.0
Total 6 100.0

6. At your bank, 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 C&I lines as opposed to the refinancing of existing loans.)

 All Respondents
BanksPercent
The number of inquiries has increased substantially 0 0.0
The number of inquiries has increased moderately 5 23.8
The number of inquiries has stayed about the same 11 52.4
The number of inquiries has decreased moderately 4 19.0
The number of inquiries has decreased substantially 1 4.8
Total 21 100.0

Questions 7-8 ask about commercial real estate loans at your bank, including construction and land development loans and loans secured by nonfarm nonresidential real estate. Question 7 deals with changes in your bank's standards over the last 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 commercial real estate loans changed?

 All Respondents
BanksPercent
Tightened considerably 3 21.4
Tightened somewhat 2 14.3
Remained basically unchanged 9 64.3
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 14 100.0

8. Apart from normal seasonal variation, how has demand for commercial real estate loans changed over the past three months?

 All Respondents
BanksPercent
Substantially stronger 1 7.1
Moderately stronger 0 0.0
About the same 6 42.9
Moderately weaker 3 21.4
Substantially weaker 4 28.6
Total 14 100.0

In recent quarters, significant fractions of survey respondents have reported having tightened their credit standards on a broad range of loan types. Question 9 asks about your expectations for changes in credit standards at your bank through the end of 2008 and in the first half of 2009.

9. Assuming that economic activity progresses in line with consensus forecasts, how do you expect your bank’s credit standards on loans to businesses to change?

 All Respondents
BanksPercent
Tighten considerably 0 0.0
Tighten somewhat 9 42.9
Remain basically unchanged 12 57.1
Ease somewhat 0 0.0
Ease considerably 0 0.0
Total 21 100.0
 All Respondents
BanksPercent
Tighten considerably 0 0.0
Tighten somewhat 7 33.3
Remain basically unchanged 13 61.9
Ease somewhat 1 4.8
Ease considerably 0 0.0
Total 21 100.0

 All Respondents
BanksPercent
Tighten considerably 2 14.3
Tighten somewhat 4 28.6
Remain basically unchanged 8 57.1
Ease somewhat 0 0.0
Ease considerably 0 0.0
Total 14 100.0
 All Respondents
BanksPercent
Tighten considerably 2 14.3
Tighten somewhat 5 35.7
Remain basically unchanged 7 50.0
Ease somewhat 0 0.0
Ease considerably 0 0.0
Total 14 100.0


1. As of March 31, 2008, the 21 respondents had combined assets of $1.0 trillion, compared to $2.0 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.

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