Skip to content1. 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 | ||
|---|---|---|
| Banks | Percent | |
| Tightened considerably | 0 | 0.0 |
| Tightened somewhat | 3 | 15.0 |
| Remained basically unchanged | 17 | 85.0 |
| Eased somewhat | 0 | 0.0 |
| Eased considerably | 0 | 0.0 |
| Total | 20 | 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? (Please assign each term 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 | |
|---|---|
| Mean | |
| Maximum size of credit lines | 3.10 |
| Maximum maturity of loans or credit lines | 3.05 |
| Costs of credit lines | 2.95 |
| Spreads of loan rates over your bank's cost of funds (wider spreads=tightened, narrower spreads=eased) | 2.95 |
| Premiums charged on riskier loans | 2.85 |
| Loan covenants | 3.00 |
| Collateralization requirements | 2.95 |
| Other (please specify) | 3.00 |
| Number of banks responding | 20 |
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? (Please respond to either A, B, or both as appropriate and rate each possible reason using the following scale: 1=not important, 2=somewhat important, 3=very important.)
a. Possible reasons for tightening credit standards or loan terms:
| All Respondents | |
|---|---|
| Mean | |
| Deterioration in your bank's current or expected capital position | 1.17 |
| Less favorable or more uncertain economic outlook | 1.83 |
| Worsening of industry-specific problems (please specify industries) | 1.33 |
| Less aggressive competition from other banks or nonbank lenders (other financial intermediaries or the capital markets) | 1.57 |
| Reduced tolerance for risk | 1.86 |
| Decreased liquidity in the secondary market for these loans | 2.25 |
| Increase in defaults by borrowers in public debt markets | 1.20 |
| Other (please specify) | 2.00 |
| Number of banks responding | 8 |
b. Possible reasons for easing credit standards or loan terms:
| All Respondents | |
|---|---|
| Mean | |
| Improvement in your bank's current or expected capital position | 1.00 |
| More favorable or less uncertain economic outlook | 1.00 |
| Improvement in industry-specific problems (please specify industries) | 1.00 |
| More aggressive competition from other banks or nonbank lenders (other financial intermediaries or the capital markets) | 2.75 |
| Increased tolerance for risk | 1.67 |
| Increased liquidity in the secondary market for these loans | 1.67 |
| Reduction in defaults by borrowers in public debt markets | 1.33 |
| Other (please specify) | 0.00 |
| Number of banks responding | 4 |
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 | ||
|---|---|---|
| Banks | Percent | |
| Substantially stronger | 1 | 5.0 |
| Moderately stronger | 3 | 15.0 |
| About the same | 16 | 80.0 |
| Moderately weaker | 0 | 0.0 |
| Substantially weaker | 0 | 0.0 |
| Total | 20 | 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? (Please rate each possible reason using the following scale: 1=not important, 2=somewhat important, 3=very important.)
a. If stronger loan demand (answer 1 or 2 to question 4), possible reasons:
| All Respondents | |
|---|---|
| Mean | |
| Customer inventory financing needs increased | 1.33 |
| Customer accounts receivable financing needs increased | 1.33 |
| Customer investment in plant or equipment increased | 1.67 |
| Customer internally generated funds decreased | 1.00 |
| Customer merger or acquisition financing needs increased | 2.75 |
| Customer borrowing shifted to your bank from other bank or nonbank sources because these other sources became less attractive | 1.00 |
| Other (please specify) | 3.00 |
| Number of banks responding | 4 |
b. If weaker loan demand (answer 4 or 5 to question 4), possible reasons:
| All Respondents | |
|---|---|
| Mean | |
| Customer inventory financing needs decreased | - |
| Customer accounts receivable financing needs decreased | - |
| Customer investment in plant or equipment decreased | - |
| Customer internally generated funds increased | - |
| Customer merger or acquisition financing needs decreased | - |
| Customer borrowing shifted from your bank to other bank or nonbank credit sources because these other sources became more attractive | - |
| Other (please specify) | - |
| Number of banks responding | 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 C&I lines as opposed to the refinancing of existing loans.)
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| The number of inquiries has increased substantially | 0 | 0.0 |
| The number of inquiries has increased moderately | 2 | 10.0 |
| The number of inquiries has stayed about the same | 16 | 80.0 |
| The number of inquiries has decreased moderately | 2 | 10.0 |
| The number of inquiries has decreased substantially | 0 | 0.0 |
| Total | 20 | 100.0 |
7. Approximately what percentage of C&I loans currently on your bank's books is accounted for by syndicated loans? (Please consider only funds actually disbursed as opposed to unused lines of credit. Also, please include syndicated loans arranged by your bank, those arranged by other banks, and participations of syndicated loans that your bank has purchased.)
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| My bank does not currently have any syndicated loans on its books | 0 | 0.0 |
| More than 0 percent and less than 5 percent | 0 | 0.0 |
| More than 5 percent and less than 20 percent | 1 | 5.0 |
| More than 20 percent and less than 35 percent | 0 | 0.0 |
| More than 35 percent and less than 50 percent | 4 | 20.0 |
| More than 50 percent and less than 75 percent | 6 | 30.0 |
| More than 75 percent | 9 | 45.0 |
| Total | 20 | 100.0 |
8. Approximately what percentage of the syndicated loans currently on your bank's books (as reported in question 7) is considered leveraged? (Please consider a loan to be leveraged when the obligor's post financing leverage as measured by debt-to-assets, debt-to-equity, cash flow-to-total debt, or other such standards unique to particular industries significantly exceeds industry norms for leverage.2 )
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| My bank does not currently have any leveraged syndicated loans on its books | 2 | 10.0 |
| More than 0 percent and less than 5 percent | 5 | 25.0 |
| More than 5 percent and less than 20 percent | 7 | 35.0 |
| More than 20 percent and less than 35 percent | 3 | 15.0 |
| More than 35 percent and less than 50 percent | 3 | 15.0 |
| More than 50 percent and less than 75 percent | 0 | 0.0 |
| More than 75 percent | 0 | 0.0 |
| Total | 20 | 100.0 |
9. Approximately what percentage of the syndicated loans currently on your bank's books (as reported in question 7) was originated to fund leveraged buyouts (LBOs)?
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| My bank does not currently have any syndicated loans on its books that were used to fund LBOs | 3 | 15.8 |
| More than 0 percent and less than 5 percent | 9 | 47.4 |
| More than 5 percent and less than 20 percent | 3 | 15.8 |
| More than 20 percent and less than 35 percent | 1 | 5.3 |
| More than 35 percent and less than 50 percent | 2 | 10.5 |
| More than 50 percent and less than 75 percent | 1 | 5.3 |
| More than 75 percent | 0 | 0.0 |
| Total | 19 | 100.0 |
10. Approximately what percentage of the syndicated loans currently on your bank's books (as reported in question 7) is accounted for by ``bridge loans'' used to fund M&A-related activity that your bank expects to be paid down with funds raised in the capital markets within the next twelve months?
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| My bank does not currently have any bridge loans on its books | 5 | 26.3 |
| More than 0 percent and less than 5 percent | 12 | 63.2 |
| More than 5 percent and less than 20 percent | 2 | 10.5 |
| More than 20 percent and less than 35 percent | 0 | 0.0 |
| More than 35 percent and less than 50 percent | 0 | 0.0 |
| More than 50 percent and less than 75 percent | 0 | 0.0 |
| More than 75 percent | 0 | 0.0 |
| Total | 19 | 100.0 |
11. News reports suggest increased use of equity bridge loans to LBO sponsors to provide financing applied toward the sponsors' equity contributions in buyouts. These loans are subsequently paid down with funds raised in equity sales. Approximately what percentage of the syndicated loans currently on your bank's books (as reported in question 7) is accounted for by such equity bridge loans?
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| My bank does not currently have any equity bridge loans on its books | 13 | 65.0 |
| More than 0 percent and less than 5 percent | 7 | 35.0 |
| More than 5 percent and less than 20 percent | 0 | 0.0 |
| More than 20 percent and less than 35 percent | 0 | 0.0 |
| More than 35 percent and less than 50 percent | 0 | 0.0 |
| More than 50 percent and less than 75 percent | 0 | 0.0 |
| More than 75 percent | 0 | 0.0 |
| Total | 20 | 100.0 |
12. The leveraged loan pipeline has reportedly been very substantial in recent months. In light of the high volume of new credits coming to market, which of the following modifications of syndicated lending standards and terms does your bank expect to occur? (Please assign to each item a number using the following scale: 1=unlikely to occur, 2=likely to occur, 3=very likely to occur.)
| All Respondents | |
|---|---|
| Mean | |
| Tighter lending standards | 2.22 |
| Increased number of covenants and/or more stringent covenants | 2.28 |
| Wider loan rate spreads | 2.28 |
| Reduced size of the loan portions of deals | 1.65 |
| Introduction of call protection or original issue discount | 1.71 |
| Other (please specify) | 1.00 |
| Number of banks responding | 18 |
13. Over the past three months, how have your bank's credit standards for approving applications for commercial real estate loans changed?
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Tightened considerably | 1 | 5.9 |
| Tightened somewhat | 6 | 35.3 |
| Remained basically unchanged | 9 | 52.9 |
| Eased somewhat | 1 | 5.9 |
| Eased considerably | 0 | 0.0 |
| Total | 17 | 100.0 |
14. Apart from normal seasonal variation, how has demand for commercial real estate loans changed over the past three months?
| All Respondents | ||
|---|---|---|
| Banks | Percent | |
| Substantially stronger | 0 | 0.0 |
| Moderately stronger | 0 | 0.0 |
| About the same | 13 | 76.5 |
| Moderately weaker | 1 | 5.9 |
| Substantially weaker | 3 | 17.6 |
| Total | 17 | 100.0 |