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Senior Loan Officer Opinion Survey on Bank Lending Practices
January 2017

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 2017)

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 23 100.0
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 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 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 1 4.3
Remained basically unchanged 20 87.0
Eased somewhat 2 8.7
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 20 87.0
Eased somewhat 2 8.7
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 19 82.6
Eased somewhat 2 8.7
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 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 0 0.0
Remained basically unchanged 22 100.0
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 22 100.0

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 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 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 2 50.0
Somewhat important 1 25.0
Very important 1 25.0
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 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 0 0.0
About the same 20 87.0
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 0 0.0
The number of inquiries has stayed about the same 23 100.0
The number of inquiries has decreased moderately 0 0.0
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 2 13.3
Remained basically unchanged 13 86.7
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 2 13.3
About the same 11 73.3
Moderately weaker 2 13.3
Substantially weaker 0 0.0
Total 15 100.0

Questions 9-10 ask how your bank expects its lending practices and conditions for C&I loans to change over 2017.

9. Assuming that economic activity progresses in line with consensus forecasts, how does your bank expect the following lending practices and conditions for C&I loans to large and middle-market firms (annual sales of $50 million or more) to change over 2017 compared to current practices and conditions, apart from normal seasonal variation? (If your bank defines firm size differently, please use your definitions and indicate what they are.)

 All Respondents
BanksPercent
Tighten considerably 0 0.0
Tighten somewhat 1 4.5
Remain basically unchanged 20 90.9
Ease somewhat 1 4.5
Ease considerably 0 0.0
Total 22 100.0
 All Respondents
BanksPercent
Increase substantially 0 0.0
Increase somewhat 3 13.6
Remain basically unchanged 18 81.8
Decrease somewhat 1 4.5
Decrease substantially 0 0.0
Total 22 100.0

10. Assuming that economic activity progresses in line with consensus forecasts, how does your bank expect the following lending practices and conditions for C&I loans to small firms (annual sales of less than $50 million) to change over 2017 compared to current practices and conditions, apart from normal seasonal variation? (If your bank defines firm size differently, please use your definitions and indicate what they are.)

 All Respondents
BanksPercent
Tighten considerably 0 0.0
Tighten somewhat 1 7.7
Remain basically unchanged 12 92.3
Ease somewhat 0 0.0
Ease considerably 0 0.0
Total 13 100.0
 All Respondents
BanksPercent
Increase substantially 0 0.0
Increase somewhat 2 15.4
Remain basically unchanged 11 84.6
Decrease somewhat 0 0.0
Decrease substantially 0 0.0
Total 13 100.0

Question 11 ask how your bank expects its lending standards for selected categories of commercial real estate loans to change over 2017.

11. Assuming that economic activity progresses in line with consensus forecasts, how does your bank expect its lending standards for the following commercial real estate loan categories to change over 2017 compared to its current standards, apart from normal seasonal variation?

 All Respondents
BanksPercent
Tighten considerably 0 0.0
Tighten somewhat 4 36.4
Remain basically unchanged 7 63.6
Ease somewhat 0 0.0
Ease considerably 0 0.0
Total 11 100.0
 All Respondents
BanksPercent
Tighten considerably 0 0.0
Tighten somewhat 2 16.7
Remain basically unchanged 10 83.3
Ease somewhat 0 0.0
Ease considerably 0 0.0
Total 12 100.0

 All Respondents
BanksPercent
Tighten considerably 0 0.0
Tighten somewhat 2 18.2
Remain basically unchanged 9 81.8
Ease somewhat 0 0.0
Ease considerably 0 0.0
Total 11 100.0

Questions 12-13 ask about your bank's expectations for the behavior of loan delinquencies and charge-offs on selected categories of C&I and commercial real estate loans in 2017.

12. Assuming that economic activity progresses in line with consensus forecasts, what is your outlook for delinquencies and charge-offs on your bank's C&I loans in the following categories in 2017? (Please refer to the definitions of large and middle market firms and of small firms suggested in questions 9 and 10. If your bank defines firm size differently, please use your definitions and indicate what they are.)

 All Respondents
BanksPercent
Improve substantially 0 0.0
Improve somewhat 2 9.5
Remain around current levels 18 85.7
Deteriorate somewhat 1 4.8
Deteriorate substantially 0 0.0
Total 21 100.0

 All Respondents
BanksPercent
Improve substantially 0 0.0
Improve somewhat 3 14.3
Remain around current levels 16 76.2
Deteriorate somewhat 2 9.5
Deteriorate substantially 0 0.0
Total 21 100.0
 All Respondents
BanksPercent
Improve substantially 0 0.0
Improve somewhat 0 0.0
Remain around current levels 21 100.0
Deteriorate somewhat 0 0.0
Deteriorate substantially 0 0.0
Total 21 100.0

 All Respondents
BanksPercent
Improve substantially 0 0.0
Improve somewhat 0 0.0
Remain around current levels 12 100.0
Deteriorate somewhat 0 0.0
Deteriorate substantially 0 0.0
Total 12 100.0

13. Assuming that economic activity progresses in line with consensus forecasts, what is your outlook for delinquencies and charge-offs on your bank's commercial real estate loans in the following categories in 2017?

 All Respondents
BanksPercent
Improve substantially 0 0.0
Improve somewhat 0 0.0
Remain around current levels 11 91.7
Deteriorate somewhat 1 8.3
Deteriorate substantially 0 0.0
Total 12 100.0

 All Respondents
BanksPercent
Improve substantially 0 0.0
Improve somewhat 0 0.0
Remain around current levels 12 100.0
Deteriorate somewhat 0 0.0
Deteriorate substantially 0 0.0
Total 12 100.0
 All Respondents
BanksPercent
Improve substantially 0 0.0
Improve somewhat 0 0.0
Remain around current levels 11 100.0
Deteriorate somewhat 0 0.0
Deteriorate substantially 0 0.0
Total 11 100.0

1. As of September 30, 2016, 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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