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Senior Loan Officer Opinion Survey on Bank Lending Practices
April 2015

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 April 2015)

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 1 4.3
Remained basically unchanged 20 87.0
Eased somewhat 2 8.7
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 0 0.0
Tightened somewhat 0 0.0
Remained basically unchanged 20 87.0
Eased somewhat 3 13.0
Eased considerably 0 0.0
Total 23 100.0
 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 0 0.0
Remained basically unchanged 22 100.0
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 4.5
Remained basically unchanged 19 86.4
Eased somewhat 2 9.1
Eased considerably 0 0.0
Total 22 100.0
 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 1 4.5
Remained basically unchanged 18 81.8
Eased somewhat 3 13.6
Eased considerably 0 0.0
Total 22 100.0

 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 2 9.1
Remained basically unchanged 17 77.3
Eased somewhat 3 13.6
Eased considerably 0 0.0
Total 22 100.0
 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 0 0.0
Remained basically unchanged 20 90.9
Eased somewhat 2 9.1
Eased considerably 0 0.0
Total 22 100.0

 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 0 0.0
Remained basically unchanged 22 100.0
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 22 100.0
 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 0 0.0
Remained basically unchanged 19 95.0
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?

Responses are not reported when the number of respondents is 3 or fewer.
Responses are not reported when the number of respondents is 3 or fewer.
Responses are not reported when the number of respondents is 3 or fewer.
Responses are not reported when the number of respondents is 3 or fewer.
Responses are not reported when the number of respondents is 3 or fewer.
Responses are not reported when the number of respondents is 3 or fewer.
Responses are not reported when the number of respondents is 3 or fewer.
Responses are not reported when the number of respondents is 3 or fewer.

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

 All Respondents
BanksPercent
Not important 0 0.0
Somewhat important 0 0.0
Very important 4 100.0
Total 4 100.0
 All Respondents
BanksPercent
Not important 2 50.0
Somewhat important 2 50.0
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 4 100.0
Somewhat important 0 0.0
Very important 0 0.0
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

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 8.7
About the same 18 78.3
Moderately weaker 3 13.0
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?

Responses are not reported when the number of respondents is 3 or fewer.
Responses are not reported when the number of respondents is 3 or fewer.
Responses are not reported when the number of respondents is 3 or fewer.
Responses are not reported when the number of respondents is 3 or fewer.
Responses are not reported when the number of respondents is 3 or fewer.
Responses are not reported when the number of respondents is 3 or fewer.
Responses are not reported when the number of respondents is 3 or fewer.

Responses are not reported when the number of respondents is 3 or fewer.
Responses are not reported when the number of respondents is 3 or fewer.
Responses are not reported when the number of respondents is 3 or fewer.
Responses are not reported when the number of respondents is 3 or fewer.
Responses are not reported when the number of respondents is 3 or fewer.
Responses are not reported when the number of respondents is 3 or fewer.
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
BanksPercent
The number of inquiries has increased substantially 0 0.0
The number of inquiries has increased moderately 2 8.7
The number of inquiries has stayed about the same 18 78.3
The number of inquiries has decreased moderately 3 13.0
The number of inquiries has decreased substantially 0 0.0
Total 23 100.0

Recent declines in oil prices may have led to strains in firms involved in oil and natural gas drilling/extraction and in the companies that provide support to those firms. Question 7 asks you to indicate what fraction of C&I loans held on your books are made to firms in the oil and natural gas drilling/extraction sector. Question 8 asks about your outlook for delinquencies and charge-offs on such loans. Question 9 asks about changes in credit policies made by your bank in response to developments in the oil and natural gas drilling/extraction sector.

7. Approximately what fraction of C&I loans currently outstanding on your bank's books were made to firms in the oil and natural gas drilling/extraction sector?

 All Respondents
BanksPercent
More than 30 percent 0 0.0
More than 20 but less than 30 percent 0 0.0
More than 10 but less than 20 percent 9 45.0
Less than 10 percent 11 55.0
Total 20 100.0

8. Assuming that economic activity progresses in line with consensus forecasts, and energy commodity prices evolve in line with current future prices, what is your outlook for delinquencies and charge- offs on your bank's loans to firms in the oil and natural gas drilling/extraction sector over the remainder of 2015?

 All Respondents
BanksPercent
Loan quality is likely to improve substantially 0 0.0
Loan quality is likely to improve somewhat 2 10.0
Loan quality is likely to remain around current levels 9 45.0
Loan quality is likely to deteriorate somewhat 9 45.0
Loan quality is likely to deteriorate substantially 0 0.0
Total 20 100.0

9. Please indicate how important each of the following actions are in your bank's efforts to mitigate risks of loan losses from loans made to firms in the oil and natural gas drilling/extraction sector. (Please rate each possible action using the following scale: 1=not important, 2=somewhat important, 3=very important).

 All Respondents
BanksPercent
Not important 3 15.0
Somewhat important 11 55.0
Very important 6 30.0
Total 20 100.0

 All Respondents
BanksPercent
Not important 8 40.0
Somewhat important 8 40.0
Very important 4 20.0
Total 20 100.0
 All Respondents
BanksPercent
Not important 3 15.0
Somewhat important 8 40.0
Very important 9 45.0
Total 20 100.0
 All Respondents
BanksPercent
Not important 8 40.0
Somewhat important 6 30.0
Very important 6 30.0
Total 20 100.0

 All Respondents
BanksPercent
Not important 7 35.0
Somewhat important 9 45.0
Very important 4 20.0
Total 20 100.0
 All Respondents
BanksPercent
Not important 14 70.0
Somewhat important 6 30.0
Very important 0 0.0
Total 20 100.0

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 1 8.3
Remained basically unchanged 10 83.3
Eased somewhat 1 8.3
Eased considerably 0 0.0
Total 12 100.0

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 3 25.0
About the same 7 58.3
Moderately weaker 2 16.7
Substantially weaker 0 0.0
Total 12 100.0

12. Over the past year, how has your bank changed the following policies on CRE loans? (Please assign each policy a number between 1 and 5 using the following scale: 1=tightened considerably, 2=tightened somewhat, 3=remained basically unchanged, 4=eased somewhat, 5=eased considerably.)

 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 1 9.1
Remained basically unchanged 8 72.7
Eased somewhat 2 18.2
Eased considerably 0 0.0
Total 11 100.0
 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 0 0.0
Remained basically unchanged 11 100.0
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 11 100.0

 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 0 0.0
Remained basically unchanged 5 45.5
Eased somewhat 5 45.5
Eased considerably 1 9.1
Total 11 100.0
 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 0 0.0
Remained basically unchanged 10 90.9
Eased somewhat 1 9.1
Eased considerably 0 0.0
Total 11 100.0

 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 0 0.0
Remained basically unchanged 10 90.9
Eased somewhat 1 9.1
Eased considerably 0 0.0
Total 11 100.0
 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 0 0.0
Remained basically unchanged 10 90.9
Eased somewhat 1 9.1
Eased considerably 0 0.0
Total 11 100.0

13. If your bank has tightened or eased its credit policies on CRE loans over the past year (as described in question 12), please select the 4 most important reasons among all the possible reasons listed below and rank them in order of importance. (Please respond to either 13A, 13B, or both as appropriate and rank the 4 most important reasons using a scale ranging from 4=the most important to 1=the least important.)

Responses are not reported when the number of respondents is 3 or fewer.
  All Respondents
Mean
More favorable or less uncertain outlook for CRE property prices 4.0
More favorable or less uncertain outlook for vacancy rates or other fundamentals on CRE properties 2.8
More favorable or less uncertain capitalization rates (the ratio of current net operating income to the original sale price or current market value) on CRE properties 3.0
More aggressive competition from other banks or non-bank lenders (other financial intermediaries or the capital markets) 2.0
Increased tolerance for risk 3.0
Increased ability to securitize CRE loans -
Decreased concerns about capital adequacy, liquidity position, or regulation more broadly 1.0
Other 1.0
Number of respondents 5

14. For each of the following categories of CRE lending, and assuming economic activity progresses in line with consensus forecasts, please indicate how you expect your bank's pace of loan originations during 2015 will change relative to its pace in 2014. (Please assign to each category a number between 1 and 6 using the following scale: 1=I expect the pace of originations at my bank will decline substantially; 2=I expect the pace of originations at my bank will decline somewhat; 3=I expect the pace of originations at my bank will be about the same; 4=I expect the pace of originations at my bank will increase somewhat; 5=I expect the pace of originations at my bank will increase substantially; 6=My bank does not originate this type of loan.)

 All Respondents
BanksPercent
I expect the pace of originations at my bank will decline substantially 0 0.0
I expect the pace of originations at my bank will decline somewhat 1 8.3
I expect the pace of originations at my bank will be about the same 4 33.3
I expect the pace of originations at my bank will increase somewhat 4 33.3
I expect the pace of originations at my bank will increase substantially 1 8.3
My bank does not originate this type of loan 2 16.7
Total 12 100.0
 All Respondents
BanksPercent
I expect the pace of originations at my bank will decline substantially 0 0.0
I expect the pace of originations at my bank will decline somewhat 0 0.0
I expect the pace of originations at my bank will be about the same 6 54.5
I expect the pace of originations at my bank will increase somewhat 1 9.1
I expect the pace of originations at my bank will increase substantially 1 9.1
My bank does not originate this type of loan 3 27.3
Total 11 100.0

 All Respondents
BanksPercent
I expect the pace of originations at my bank will decline substantially 0 0.0
I expect the pace of originations at my bank will decline somewhat 0 0.0
I expect the pace of originations at my bank will be about the same 3 27.3
I expect the pace of originations at my bank will increase somewhat 0 0.0
I expect the pace of originations at my bank will increase substantially 0 0.0
My bank does not originate this type of loan 8 72.7
Total 11 100.0
 All Respondents
BanksPercent
I expect the pace of originations at my bank will decline substantially 0 0.0
I expect the pace of originations at my bank will decline somewhat 1 8.3
I expect the pace of originations at my bank will be about the same 4 33.3
I expect the pace of originations at my bank will increase somewhat 2 16.7
I expect the pace of originations at my bank will increase substantially 1 8.3
My bank does not originate this type of loan 4 33.3
Total 12 100.0

1. As of December 31, 2014, the 23 respondents had combined assets of $1.3 trillion, compared to $2.5 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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