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Senior Loan Officer Opinion Survey on Bank Lending Practices
January 2011

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 January 2011)

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 0 0.0
Tightened somewhat 0 0.0
Remained basically unchanged 18 85.7
Eased somewhat 3 14.3
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 0 0.0
Tightened somewhat 1 4.8
Remained basically unchanged 17 81.0
Eased somewhat 3 14.3
Eased considerably 0 0.0
Total 21 100.0
 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 0 0.0
Remained basically unchanged 17 85.0
Eased somewhat 3 15.0
Eased considerably 0 0.0
Total 20 100.0

 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 0 0.0
Remained basically unchanged 16 80.0
Eased somewhat 4 20.0
Eased considerably 0 0.0
Total 20 100.0
 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 0 0.0
Remained basically unchanged 13 65.0
Eased somewhat 7 35.0
Eased considerably 0 0.0
Total 20 100.0
 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 0 0.0
Remained basically unchanged 15 75.0
Eased somewhat 5 25.0
Eased considerably 0 0.0
Total 20 100.0

 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 0 0.0
Remained basically unchanged 18 85.7
Eased somewhat 3 14.3
Eased considerably 0 0.0
Total 21 100.0
 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 0 0.0
Remained basically unchanged 21 100.0
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 21 100.0

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 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 --
 All Respondents
BanksPercent
Not important 0 --
Somewhat important 0 --
Very important 0 --
Total 0 --
 All Respondents
BanksPercent
Not important 6 75.0
Somewhat important 2 25.0
Very important 0 0.0
Total 8 100.0

 All Respondents
BanksPercent
Not important 3 37.5
Somewhat important 5 62.5
Very important 0 0.0
Total 8 100.0
 All Respondents
BanksPercent
Not important 3 37.5
Somewhat important 4 50.0
Very important 1 12.5
Total 8 100.0
 All Respondents
BanksPercent
Not important 1 11.1
Somewhat important 5 55.6
Very important 3 33.3
Total 9 100.0

 All Respondents
BanksPercent
Not important 6 75.0
Somewhat important 0 0.0
Very important 2 25.0
Total 8 100.0
 All Respondents
BanksPercent
Not important 4 50.0
Somewhat important 4 50.0
Very important 0 0.0
Total 8 100.0
 All Respondents
BanksPercent
Not important 6 75.0
Somewhat important 2 25.0
Very important 0 0.0
Total 8 100.0

 All Respondents
BanksPercent
Not important 7 87.5
Somewhat important 0 0.0
Very important 1 12.5
Total 8 100.0
 All Respondents
BanksPercent
Not important 8 100.0
Somewhat important 0 0.0
Very important 0 0.0
Total 8 100.0

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

 All Respondents
BanksPercent
Substantially stronger 0 0.0
Moderately stronger 4 19.0
About the same 15 71.4
Moderately weaker 2 9.5
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 1 33.3
Somewhat important 2 66.7
Very important 0 0.0
Total 3 100.0
 All Respondents
BanksPercent
Not important 2 66.7
Somewhat important 1 33.3
Very important 0 0.0
Total 3 100.0
 All Respondents
BanksPercent
Not important 3 100.0
Somewhat important 0 0.0
Very important 0 0.0
Total 3 100.0

 All Respondents
BanksPercent
Not important 2 66.7
Somewhat important 1 33.3
Very important 0 0.0
Total 3 100.0
 All Respondents
BanksPercent
Not important 0 0.0
Somewhat important 3 100.0
Very important 0 0.0
Total 3 100.0
 All Respondents
BanksPercent
Not important 1 33.3
Somewhat important 2 66.7
Very important 0 0.0
Total 3 100.0

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

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 or increased 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 25.0
The number of inquiries has stayed about the same 15 75.0
The number of inquiries has decreased moderately 0 0.0
The number of inquiries has decreased substantially 0 0.0
Total 20 100.0

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 real estate. 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 changed?

 All Respondents
BanksPercent
Tightened considerably 1 7.7
Tightened somewhat 2 15.4
Remained basically unchanged 9 69.2
Eased somewhat 0 0.0
Eased considerably 1 7.7
Total 13 100.0

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

 All Respondents
BanksPercent
Substantially stronger 1 7.7
Moderately stronger 3 23.1
About the same 8 61.5
Moderately weaker 1 7.7
Substantially weaker 0 0.0
Total 13 100.0

Question 9 focuses on changes in your bank's policies on CRE loans over the past year. If your bank's lending policies have not changed over the past year, please report them as unchanged even if they are either restrictive or accommodative relative to longer-term norms. If your bank's policies have tightened or eased over the past year, please report these changes regardless of how your bank's policies stand relative to longer-term norms.

9. Over the past year, how has your bank changed the following policies on CRE loans?

 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 1 8.3
Remained basically unchanged 5 41.7
Eased somewhat 5 41.7
Eased considerably 1 8.3
Total 12 100.0
 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 0 0.0
Remained basically unchanged 11 91.7
Eased somewhat 1 8.3
Eased considerably 0 0.0
Total 12 100.0

 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 1 8.3
Remained basically unchanged 8 66.7
Eased somewhat 3 25.0
Eased considerably 0 0.0
Total 12 100.0
 All Respondents
BanksPercent
Tightened considerably 1 8.3
Tightened somewhat 0 0.0
Remained basically unchanged 9 75.0
Eased somewhat 2 16.7
Eased considerably 0 0.0
Total 12 100.0
 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 1 8.3
Remained basically unchanged 11 91.7
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 12 100.0

 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 0 0.0
Remained basically unchanged 10 83.3
Eased somewhat 2 16.7
Eased considerably 0 0.0
Total 12 100.0

10. Over the past three months, how has your bank changed the size of credit lines for existing customers with the following types of accounts? Please consider changes made to line sizes during the life of existing credit agreements as well as changes made to line sizes upon renewal or renegotiation of existing agreements.

 All Respondents
BanksPercent
Increased considerably 0 0.0
Increased somewhat 0 0.0
Remained basically unchanged 5 100.0
Decreased somewhat 0 0.0
Decreased considerably 0 0.0
Total 5 100.0
 All Respondents
BanksPercent
Increased considerably 0 0.0
Increased somewhat 5 23.8
Remained basically unchanged 16 76.2
Decreased somewhat 0 0.0
Decreased considerably 0 0.0
Total 21 100.0

 All Respondents
BanksPercent
Increased considerably 0 0.0
Increased somewhat 0 0.0
Remained basically unchanged 7 100.0
Decreased somewhat 0 0.0
Decreased considerably 0 0.0
Total 7 100.0
 All Respondents
BanksPercent
Increased considerably 0 0.0
Increased somewhat 2 14.3
Remained basically unchanged 12 85.7
Decreased somewhat 0 0.0
Decreased considerably 0 0.0
Total 14 100.0

In recent quarters, loan delinquencies and charge-offs have declined in some loan classes while stabilizing or moving higher in other loan classes. Questions 11-12 ask about your bank's expectations for the behavior of these measures of loan quality in 2011. Question 11 asks about C&I loans to large and middle-market firms and to small firms. Question 12 asks about CRE loans.

11. Assuming that economic activity progresses in line with consensus forecasts, what is your outlook for delinquencies and chargeoffs on your bank's C&I loans to large and middle-market firms and to small firms in 2011?

 All Respondents
BanksPercent
Loan quality is likely to improve substantially 2 10.0
Loan quality is likely to improve somewhat 15 75.0
Loan quality is likely to stabilize around current levels 3 15.0
Loan quality is likely to deteriorate somewhat 0 0.0
Loan quality is likely to deteriorate substantially 0 0.0
Total 20 100.0
 All Respondents
BanksPercent
Loan quality is likely to improve substantially 0 0.0
Loan quality is likely to improve somewhat 5 71.4
Loan quality is likely to stabilize around current levels 2 28.6
Loan quality is likely to deteriorate somewhat 0 0.0
Loan quality is likely to deteriorate substantially 0 0.0
Total 7 100.0

12. Assuming that economic activity progresses in line with consensus forecasts, what is your outlook for delinquencies and chargeoffs on your bank's commercial real estate loans in 2011?

 All Respondents
BanksPercent
Loan quality is likely to improve substantially 0 0.0
Loan quality is likely to improve somewhat 5 45.5
Loan quality is likely to stabilize around current levels 6 54.5
Loan quality is likely to deteriorate somewhat 0 0.0
Loan quality is likely to deteriorate substantially 0 0.0
Total 11 100.0

1. As of September 30, 2010, the 22 respondents had combined assets of $1.1 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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