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Senior Loan Officer Opinion Survey on Bank Lending Practices
July 2016

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 2016)

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 22 95.7
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 0 0.0
Tightened somewhat 0 0.0
Remained basically unchanged 22 95.7
Eased somewhat 1 4.3
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 2 8.7
Remained basically unchanged 21 91.3
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 23 100.0
 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 2 8.7
Remained basically unchanged 20 87.0
Eased somewhat 1 4.3
Eased considerably 0 0.0
Total 23 100.0

 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 0 0.0
Remained basically unchanged 23 100.0
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 23 100.0

 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 2 8.7
Remained basically unchanged 21 91.3
Eased somewhat 0 0.0
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 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 5 100.0
Somewhat important 0 0.0
Very important 0 0.0
Total 5 100.0
 All Respondents
BanksPercent
Not important 0 0.0
Somewhat important 4 80.0
Very important 1 20.0
Total 5 100.0
 All Respondents
BanksPercent
Not important 0 0.0
Somewhat important 4 80.0
Very important 1 20.0
Total 5 100.0

 All Respondents
BanksPercent
Not important 4 80.0
Somewhat important 1 20.0
Very important 0 0.0
Total 5 100.0
 All Respondents
BanksPercent
Not important 2 40.0
Somewhat important 3 60.0
Very important 0 0.0
Total 5 100.0
 All Respondents
BanksPercent
Not important 3 60.0
Somewhat important 2 40.0
Very important 0 0.0
Total 5 100.0

 All Respondents
BanksPercent
Not important 4 80.0
Somewhat important 1 20.0
Very important 0 0.0
Total 5 100.0
 All Respondents
BanksPercent
Not important 2 40.0
Somewhat important 2 40.0
Very important 1 20.0
Total 5 100.0
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.

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 17 73.9
Moderately weaker 2 8.7
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 3 75.0
Somewhat important 0 0.0
Very important 1 25.0
Total 4 100.0

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

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 4 17.4
The number of inquiries has stayed about the same 18 78.3
The number of inquiries has decreased moderately 1 4.3
The number of inquiries has decreased substantially 0 0.0
Total 23 100.0

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 0 0.0
Tightened somewhat 0 0.0
Remained basically unchanged 15 100.0
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 15 100.0

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

 All Respondents
BanksPercent
Substantially stronger 0 0.0
Moderately stronger 4 26.7
About the same 8 53.3
Moderately weaker 3 20.0
Substantially weaker 0 0.0
Total 15 100.0

Question 9 asks you to describe the current level of lending standards at your bank relative to the range of standards that has prevailed between 2005 and the present, a period which likely encompasses a wide range of standards as seen over a credit cycle. For each of the loan categories listed below, please consider the points at which standards at your bank were tightest and easiest during this period.

9. Using the range between the tightest and the easiest that lending standards at your bank have been between 2005 and the present, for each of the loan categories listed below, how would you describe your bank's current level of standards relative to that range?

 All Respondents
BanksPercent
Near the easiest level that standards have been during this period 0 0.0
Significantly easier than the midpoint of the range that standards have been during this period 2 8.7
Somewhat easier than the midpoint of the range that standards have been during this period 7 30.4
Near the midpoint of the range that standards have been during this period 11 47.8
Somewhat tighter than the midpoint of the range that standards have been during this period 3 13.0
Significantly tighter than the midpoint of the range that standards have been during this period 0 0.0
Near the tightest level that standards have been during this period 0 0.0
Total 23 100.0

 All Respondents
BanksPercent
Near the easiest level that standards have been during this period 0 0.0
Significantly easier than the midpoint of the range that standards have been during this period 1 4.5
Somewhat easier than the midpoint of the range that standards have been during this period 5 22.7
Near the midpoint of the range that standards have been during this period 7 31.8
Somewhat tighter than the midpoint of the range that standards have been during this period 7 31.8
Significantly tighter than the midpoint of the range that standards have been during this period 2 9.1
Near the tightest level that standards have been during this period 0 0.0
Total 22 100.0

 All Respondents
BanksPercent
Near the easiest level that standards have been during this period 0 0.0
Significantly easier than the midpoint of the range that standards have been during this period 0 0.0
Somewhat easier than the midpoint of the range that standards have been during this period 3 16.7
Near the midpoint of the range that standards have been during this period 10 55.6
Somewhat tighter than the midpoint of the range that standards have been during this period 3 16.7
Significantly tighter than the midpoint of the range that standards have been during this period 2 11.1
Near the tightest level that standards have been during this period 0 0.0
Total 18 100.0

 All Respondents
BanksPercent
Near the easiest level that standards have been during this period 0 0.0
Significantly easier than the midpoint of the range that standards have been during this period 0 0.0
Somewhat easier than the midpoint of the range that standards have been during this period 1 12.5
Near the midpoint of the range that standards have been during this period 4 50.0
Somewhat tighter than the midpoint of the range that standards have been during this period 2 25.0
Significantly tighter than the midpoint of the range that standards have been during this period 0 0.0
Near the tightest level that standards have been during this period 1 12.5
Total 8 100.0

 All Respondents
BanksPercent
Near the easiest level that standards have been during this period 0 0.0
Significantly easier than the midpoint of the range that standards have been during this period 0 0.0
Somewhat easier than the midpoint of the range that standards have been during this period 0 0.0
Near the midpoint of the range that standards have been during this period 5 41.7
Somewhat tighter than the midpoint of the range that standards have been during this period 4 33.3
Significantly tighter than the midpoint of the range that standards have been during this period 2 16.7
Near the tightest level that standards have been during this period 1 8.3
Total 12 100.0

 All Respondents
BanksPercent
Near the easiest level that standards have been during this period 0 0.0
Significantly easier than the midpoint of the range that standards have been during this period 0 0.0
Somewhat easier than the midpoint of the range that standards have been during this period 0 0.0
Near the midpoint of the range that standards have been during this period 8 57.1
Somewhat tighter than the midpoint of the range that standards have been during this period 3 21.4
Significantly tighter than the midpoint of the range that standards have been during this period 3 21.4
Near the tightest level that standards have been during this period 0 0.0
Total 14 100.0

 All Respondents
BanksPercent
Near the easiest level that standards have been during this period 0 0.0
Significantly easier than the midpoint of the range that standards have been during this period 0 0.0
Somewhat easier than the midpoint of the range that standards have been during this period 1 11.1
Near the midpoint of the range that standards have been during this period 3 33.3
Somewhat tighter than the midpoint of the range that standards have been during this period 3 33.3
Significantly tighter than the midpoint of the range that standards have been during this period 2 22.2
Near the tightest level that standards have been during this period 0 0.0
Total 9 100.0

 All Respondents
BanksPercent
Near the easiest level that standards have been during this period 0 0.0
Significantly easier than the midpoint of the range that standards have been during this period 0 0.0
Somewhat easier than the midpoint of the range that standards have been during this period 2 11.8
Near the midpoint of the range that standards have been during this period 9 52.9
Somewhat tighter than the midpoint of the range that standards have been during this period 4 23.5
Significantly tighter than the midpoint of the range that standards have been during this period 1 5.9
Near the tightest level that standards have been during this period 1 5.9
Total 17 100.0

1. As of March 31, 2016, the 23 respondents had combined assets of $1.3 trillion, compared to $2.4 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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