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Senior Loan Officer Opinion Survey on Bank Lending Practices
January 2008

Survey | Full report (517 KB PDF)
Table 1 | Table 2 |Chart data
Table 1 (68 KB PDF) | Table 2 (32 KB PDF) | Charts (15 KB 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 2008)

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 3 13.0
Tightened somewhat 12 52.2
Remained basically unchanged 8 34.8
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 9 39.1
Remained basically unchanged 12 52.2
Eased somewhat 0 0.0
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 16 69.6
Remained basically unchanged 7 30.4
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 23 100.0
 All Respondents
BanksPercent
Tightened considerably 3 13.0
Tightened somewhat 16 69.6
Remained basically unchanged 4 17.4
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 23 100.0
 All Respondents
BanksPercent
Tightened considerably 7 30.4
Tightened somewhat 11 47.8
Remained basically unchanged 5 21.7
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 23 100.0

 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 17 73.9
Remained basically unchanged 6 26.1
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 23 100.0
 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 5 21.7
Remained basically unchanged 18 78.3
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 23 100.0

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? (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
BanksPercent
Not important 11 57.9
Somewhat important 4 21.1
Very important 4 21.1
Total 19 100.0
 All Respondents
BanksPercent
Not important 0 0.0
Somewhat important 10 52.6
Very important 9 47.4
Total 19 100.0
 All Respondents
BanksPercent
Not important 6 31.6
Somewhat important 5 26.3
Very important 8 42.1
Total 19 100.0

 All Respondents
BanksPercent
Not important 13 68.4
Somewhat important 6 31.6
Very important 0 0.0
Total 19 100.0
 All Respondents
BanksPercent
Not important 4 21.1
Somewhat important 12 63.2
Very important 3 15.8
Total 19 100.0
 All Respondents
BanksPercent
Not important 3 15.8
Somewhat important 7 36.8
Very important 9 47.4
Total 19 100.0

 All Respondents
BanksPercent
Not important 11 57.9
Somewhat important 6 31.6
Very important 2 10.5
Total 19 100.0
 All Respondents
BanksPercent
Not important 13 68.4
Somewhat important 1 5.3
Very important 5 26.3
Total 19 100.0

B. Possible reasons for easing credit standards or loan terms:

 All Respondents
BanksPercent
Not important 0 0.0
Somewhat important 0 0.0
Very important 1 100.0
Total 1 100.0
 All Respondents
BanksPercent
Not important 0 0.0
Somewhat important 1 100.0
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 0 0.0
Somewhat important 1 100.0
Very important 0 0.0
Total 1 100.0
 All Respondents
BanksPercent
Not important 0 0.0
Somewhat important 1 100.0
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 0 0.0
Somewhat important 0 0.0
Very important 1 100.0
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 2 8.7
About the same 10 43.5
Moderately weaker 10 43.5
Substantially weaker 1 4.3
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?

A. If stronger loan demand (answer 1 or 2 to question 4), possible reasons:

 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 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 1 50.0
Very important 1 50.0
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 1 50.0
Somewhat important 0 0.0
Very important 1 50.0
Total 2 100.0

B. If weaker loan demand (answer 4 or 5 to question 4), possible reasons:

 All Respondents
BanksPercent
Not important 8 80.0
Somewhat important 2 20.0
Very important 0 0.0
Total 10 100.0
 All Respondents
BanksPercent
Not important 9 90.0
Somewhat important 1 10.0
Very important 0 0.0
Total 10 100.0
 All Respondents
BanksPercent
Not important 5 50.0
Somewhat important 5 50.0
Very important 0 0.0
Total 10 100.0

 All Respondents
BanksPercent
Not important 10 100.0
Somewhat important 0 0.0
Very important 0 0.0
Total 10 100.0
 All Respondents
BanksPercent
Not important 0 0.0
Somewhat important 3 30.0
Very important 7 70.0
Total 10 100.0
 All Respondents
BanksPercent
Not important 9 90.0
Somewhat important 1 10.0
Very important 0 0.0
Total 10 100.0

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
BanksPercent
The number of inquiries has increased substantially 0 0.0
The number of inquiries has increased moderately 1 4.3
The number of inquiries has stayed about the same 10 43.5
The number of inquiries has decreased moderately 12 52.2
The number of inquiries has decreased substantially 0 0.0
Total 23 100.0

Questions 7-8 ask about commercial real estate 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 last 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 commercial real estate loans changed?

 All Respondents
BanksPercent
Tightened considerably 2 12.5
Tightened somewhat 7 43.8
Remained basically unchanged 7 43.8
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 16 100.0

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

 All Respondents
BanksPercent
Substantially stronger 0 0.0
Moderately stronger 1 6.3
About the same 7 43.8
Moderately weaker 3 18.8
Substantially weaker 5 31.3
Total 16 100.0

Questions 9-10 focus on changes in your bank's terms on commercial real estate loans over the past year. If your bank's lending terms have not changed over the past year, please report them as unchanged even if they are either restrictive or accommodative relative to longer-term norms. If your bank's lending terms have tightened or eased over the past year, please so report them regardless of how they stand relative to longer-term norms.

9. Over the past year, how has your bank changed the following terms on commercial real estate loans?

 All Respondents
BanksPercent
Tightened considerably 2 12.5
Tightened somewhat 6 37.5
Remained basically unchanged 8 50.0
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 16 100.0
 All Respondents
BanksPercent
Tightened considerably 1 6.3
Tightened somewhat 0 0.0
Remained basically unchanged 15 93.8
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 16 100.0

 All Respondents
BanksPercent
Tightened considerably 6 37.5
Tightened somewhat 6 37.5
Remained basically unchanged 4 25.0
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 16 100.0
 All Respondents
BanksPercent
Tightened considerably 4 25.0
Tightened somewhat 3 18.8
Remained basically unchanged 9 56.3
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 16 100.0

 All Respondents
BanksPercent
Tightened considerably 2 12.5
Tightened somewhat 3 18.8
Remained basically unchanged 11 68.8
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 16 100.0
 All Respondents
BanksPercent
Tightened considerably 3 18.8
Tightened somewhat 4 25.0
Remained basically unchanged 9 56.3
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 16 100.0

10. If your bank has tightened or eased its terms on commercial real estate loans over the past year (as described in question 9), how important have been the following possible reasons for the change?

A. Possible reasons for tightening commercial real estate loan terms:

 All Respondents
BanksPercent
Not important 3 23.1
Somewhat important 4 30.8
Very important 6 46.2
Total 13 100.0
 All Respondents
BanksPercent
Not important 5 38.5
Somewhat important 4 30.8
Very important 4 30.8
Total 13 100.0
 All Respondents
BanksPercent
Not important 7 53.8
Somewhat important 5 38.5
Very important 1 7.7
Total 13 100.0

 All Respondents
BanksPercent
Not important 7 53.8
Somewhat important 4 30.8
Very important 2 15.4
Total 13 100.0
 All Respondents
BanksPercent
Not important 4 30.8
Somewhat important 2 15.4
Very important 7 53.8
Total 13 100.0

B. Possible reasons for easing commercial real estate loan terms:

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

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

In recent quarters, loan delinquencies and chargeoffs have moved somewhat higher. Question 11 ask about your bank's expectations for the behavior of these measures of loan quality in 2008.

11. Assuming that economic activity progresses in line with consensus forecasts, what is your outlook for delinquencies and chargeoffs on your bank's loans to businesses in 2008?

 All Respondents
BanksPercent
Loan quality is likely to improve substantially 0 0.0
Loan quality is likely to improve somewhat 0 0.0
Loan quality is likely to stabilize around current levels 4 17.4
Loan quality is likely to deteriorate somewhat 17 73.9
Loan quality is likely to deteriorate substantially 2 8.7
Total 23 100.0
 All Respondents
BanksPercent
Loan quality is likely to improve substantially 0 0.0
Loan quality is likely to improve somewhat 0 0.0
Loan quality is likely to stabilize around current levels 4 26.7
Loan quality is likely to deteriorate somewhat 8 53.3
Loan quality is likely to deteriorate substantially 3 20.0
Total 15 100.0

1. As of Sept. 30, 2007, the 23 respondents had combined assets of $1.01 trillion, compared to $1.86 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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