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Senior Loan Officer Opinion Survey on Bank Lending Practices
January 2012

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 2012)

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 1 4.3
Tightened somewhat 4 17.4
Remained basically unchanged 18 78.3
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 23 100.0

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 8.7
Tightened somewhat 7 30.4
Remained basically unchanged 12 52.2
Eased somewhat 2 8.7
Eased considerably 0 0.0
Total 23 100.0
 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 4 17.4
Remained basically unchanged 19 82.6
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 23 100.0

 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 6 27.3
Remained basically unchanged 15 68.2
Eased somewhat 1 4.5
Eased considerably 0 0.0
Total 22 100.0
 All Respondents
BanksPercent
Tightened considerably 1 4.5
Tightened somewhat 3 13.6
Remained basically unchanged 14 63.6
Eased somewhat 4 18.2
Eased considerably 0 0.0
Total 22 100.0
 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 4 18.2
Remained basically unchanged 18 81.8
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 22 100.0

 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 1 4.3
Remained basically unchanged 22 95.7
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 23 100.0
 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 1 4.3
Remained basically unchanged 22 95.7
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 23 100.0
 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 1 5.0
Remained basically unchanged 18 90.0
Eased somewhat 1 5.0
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 4 44.4
Somewhat important 3 33.3
Very important 2 22.2
Total 9 100.0
 All Respondents
BanksPercent
Not important 0 0.0
Somewhat important 7 70.0
Very important 3 30.0
Total 10 100.0
 All Respondents
BanksPercent
Not important 6 66.7
Somewhat important 3 33.3
Very important 0 0.0
Total 9 100.0

 All Respondents
BanksPercent
Not important 7 77.8
Somewhat important 2 22.2
Very important 0 0.0
Total 9 100.0
 All Respondents
BanksPercent
Not important 5 55.6
Somewhat important 2 22.2
Very important 2 22.2
Total 9 100.0
 All Respondents
BanksPercent
Not important 6 66.7
Somewhat important 2 22.2
Very important 1 11.1
Total 9 100.0

 All Respondents
BanksPercent
Not important 2 20.0
Somewhat important 6 60.0
Very important 2 20.0
Total 10 100.0
 All Respondents
BanksPercent
Not important 4 50.0
Somewhat important 3 37.5
Very important 1 12.5
Total 8 100.0
 All Respondents
BanksPercent
Not important 1 100.0
Somewhat important 0 0.0
Very important 0 0.0
Total 1 100.0

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

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

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 17.4
About the same 15 65.2
Moderately weaker 4 17.4
Substantially weaker 0 0.0
Total 23 100.0

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 2 100.0
Somewhat important 0 0.0
Very important 0 0.0
Total 2 100.0

 All Respondents
BanksPercent
Not important 2 100.0
Somewhat important 0 0.0
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 2 100.0
Somewhat important 0 0.0
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 2 50.0
Very important 2 50.0
Total 4 100.0
 All Respondents
BanksPercent
Not important 4 100.0
Somewhat important 0 0.0
Very important 0 0.0
Total 4 100.0
 All Respondents
BanksPercent
Not important 3 75.0
Somewhat important 1 25.0
Very important 0 0.0
Total 4 100.0

 All Respondents
BanksPercent
Not important 1 25.0
Somewhat important 3 75.0
Very important 0 0.0
Total 4 100.0
 All Respondents
BanksPercent
Not important 3 75.0
Somewhat important 1 25.0
Very important 0 0.0
Total 4 100.0
 All Respondents
BanksPercent
Not important 0 0.0
Somewhat important 3 75.0
Very important 1 25.0
Total 4 100.0

 All Respondents
BanksPercent
Not important 3 75.0
Somewhat important 1 25.0
Very important 0 0.0
Total 4 100.0

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
BanksPercent
The number of inquiries has increased substantially 0 0.0
The number of inquiries has increased moderately 4 18.2
The number of inquiries has stayed about the same 17 77.3
The number of inquiries has decreased moderately 1 4.5
The number of inquiries has decreased substantially 0 0.0
Total 22 100.0

The ongoing fiscal and financial strains in Europe may have affected lending conditions for nonfinancial companies that have operations in the United States and significant exposure to European economies, as well as banks headquartered in Europe and their affiliates and subsidiaries. Question 7 deals with changes in your bank's lending policies toward both types of firms over the past three months. In addition, developments in Europe may have affected these firms' demand for credit from U.S. banks. Questions 8-9 deal with such changes in demand.

In answering these questions, please consider your bank's C&I lending to all nonfinancial companies with operations in the United States and significant exposure to European economies (that is, please consider your bank's C&I loans both to European firms that are located in the United States and to domestic firms that conduct a significant portion of their business with European firms). With regard to banks, please consider your bank's lending, or extension of credit lines, to banks headquartered in Europe and to the affiliates and subsidiaries of European banks regardless of the location of those affiliates and subsidiaries.

7. Over the past three months, how have your bank's credit standards and terms for approving applications for loans or credit lines—other than those to be used to finance mergers and acquisitions—for the following types of firms changed?

 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 7 31.8
Remained basically unchanged 15 68.2
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 22 100.0

 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 10 71.4
Remained basically unchanged 4 28.6
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 14 100.0

8. Over the past three months and apart from normal seasonal variation, how has demand for loans at your bank from the following types of firms changed? (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 0 0.0
About the same 21 100.0
Moderately weaker 0 0.0
Substantially weaker 0 0.0
Total 21 100.0

 All Respondents
BanksPercent
Substantially stronger 0 0.0
Moderately stronger 2 13.3
About the same 12 80.0
Moderately weaker 1 6.7
Substantially weaker 0 0.0
Total 15 100.0

9. Over the past three months, how has the number of inquiries at your bank regarding the availability and terms of new credit lines or increases in existing lines from the following types of firms changed? (Please consider only inquiries for additional or increased 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 1 4.8
The number of inquiries has stayed about the same 20 95.2
The number of inquiries has decreased moderately 0 0.0
The number of inquiries has decreased substantially 0 0.0
Total 21 100.0

 All Respondents
BanksPercent
The number of inquiries has increased substantially 0 0.0
The number of inquiries has increased moderately 3 20.0
The number of inquiries has stayed about the same 12 80.0
The number of inquiries has decreased moderately 0 0.0
The number of inquiries has decreased substantially 0 0.0
Total 15 100.0

Questions 10-11 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 10 deals with changes in your bank's standards over the past three months. Question 11 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.

10. Over the past three months, how have your bank's credit standards for approving applications for CRE loans changed?

 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 2 14.3
Remained basically unchanged 12 85.7
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 14 100.0

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

 All Respondents
BanksPercent
Substantially stronger 0 0.0
Moderately stronger 2 15.4
About the same 10 76.9
Moderately weaker 0 0.0
Substantially weaker 1 7.7
Total 13 100.0

Question 12 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 accomodative 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.

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

 All Respondents
BanksPercent
Tightened considerably 1 7.7
Tightened somewhat 0 0.0
Remained basically unchanged 9 69.2
Eased somewhat 2 15.4
Eased considerably 1 7.7
Total 13 100.0
 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 2 15.4
Remained basically unchanged 10 76.9
Eased somewhat 1 7.7
Eased considerably 0 0.0
Total 13 100.0

 All Respondents
BanksPercent
Tightened considerably 1 7.7
Tightened somewhat 1 7.7
Remained basically unchanged 9 69.2
Eased somewhat 2 15.4
Eased considerably 0 0.0
Total 13 100.0
 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 2 15.4
Remained basically unchanged 10 76.9
Eased somewhat 1 7.7
Eased considerably 0 0.0
Total 13 100.0
 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 0 0.0
Remained basically unchanged 12 100.0
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 12 100.0

 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 3 25.0
Remained basically unchanged 8 66.7
Eased somewhat 1 8.3
Eased considerably 0 0.0
Total 12 100.0

In recent quarters, loan delinquencies and charge-offs have improved by varying degrees depending on loan class. Questions 13-14 ask about your bank's expectations for the behavior of these measures of loan quality in 2012. Question 13 asks about C&I loans to large and middle-market firms and to small firms. Question 14 asks about CRE loans.

13. 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 2012?

 All Respondents
BanksPercent
Loan quality is likely to improve substantially 0 0.0
Loan quality is likely to improve somewhat 4 18.2
Loan quality is likely to stabilize around current levels 14 63.6
Loan quality is likely to deteriorate somewhat 4 18.2
Loan quality is likely to deteriorate substantially 0 0.0
Total 22 100.0
 All Respondents
BanksPercent
Loan quality is likely to improve substantially 0 0.0
Loan quality is likely to improve somewhat 1 20.0
Loan quality is likely to stabilize around current levels 3 60.0
Loan quality is likely to deteriorate somewhat 1 20.0
Loan quality is likely to deteriorate substantially 0 0.0
Total 5 100.0

14. Assuming that economic activity progresses in line with consensus forecasts, what is your outlook for delinquencies and chargeoffs on your bank's CRE loans in 2012?

 All Respondents
BanksPercent
Loan quality is likely to improve substantially 0 0.0
Loan quality is likely to improve somewhat 3 23.1
Loan quality is likely to stabilize around current levels 10 76.9
Loan quality is likely to deteriorate somewhat 0 0.0
Loan quality is likely to deteriorate substantially 0 0.0
Total 13 100.0

1. As of September 30, 2011, the 23 respondents had combined assets of $1.2 trillion, compared to $2.2 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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