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Senior Loan Officer Opinion Survey on Bank Lending Practices
July 2012

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 2012)

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 2 8.7
Remained basically unchanged 21 91.3
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 4 17.4
Remained basically unchanged 17 73.9
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 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 3 13.6
Remained basically unchanged 19 86.4
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 22 100.0
 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 4 18.2
Remained basically unchanged 15 68.2
Eased somewhat 3 13.6
Eased considerably 0 0.0
Total 22 100.0
 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 4 18.2
Remained basically unchanged 17 77.3
Eased somewhat 1 4.5
Eased considerably 0 0.0
Total 22 100.0

 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 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 5.0
Remained basically unchanged 18 90.0
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?

 All Respondents
BanksPercent
Not important 5 83.3
Somewhat important 1 16.7
Very important 0 0.0
Total 6 100.0
 All Respondents
BanksPercent
Not important 1 16.7
Somewhat important 2 33.3
Very important 3 50.0
Total 6 100.0
 All Respondents
BanksPercent
Not important 3 50.0
Somewhat important 3 50.0
Very important 0 0.0
Total 6 100.0

 All Respondents
BanksPercent
Not important 4 80.0
Somewhat important 0 0.0
Very important 1 20.0
Total 5 100.0
 All Respondents
BanksPercent
Not important 4 66.7
Somewhat important 1 16.7
Very important 1 16.7
Total 6 100.0
 All Respondents
BanksPercent
Not important 4 66.7
Somewhat important 2 33.3
Very important 0 0.0
Total 6 100.0

 All Respondents
BanksPercent
Not important 4 66.7
Somewhat important 2 33.3
Very important 0 0.0
Total 6 100.0
 All Respondents
BanksPercent
Not important 3 50.0
Somewhat important 3 50.0
Very important 0 0.0
Total 6 100.0
 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 5 100.0
Somewhat important 0 0.0
Very important 0 0.0
Total 5 100.0
 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 3 75.0
Somewhat important 0 0.0
Very important 1 25.0
Total 4 100.0

 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 5 100.0
Somewhat important 0 0.0
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 5 100.0
Somewhat important 0 0.0
Very important 0 0.0
Total 5 100.0

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 17 77.3
Moderately weaker 5 22.7
Substantially weaker 0 0.0
Total 22 100.0

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 0 --
Somewhat important 0 --
Very important 0 --
Total 0 --

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

 All Respondents
BanksPercent
Not important 0 --
Somewhat important 0 --
Very important 0 --
Total 0 --
 All Respondents
BanksPercent
Not important 0 --
Somewhat important 0 --
Very important 0 --
Total 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
 All Respondents
BanksPercent
Not important 1 25.0
Somewhat important 3 75.0
Very important 0 0.0
Total 4 100.0
 All Respondents
BanksPercent
Not important 2 40.0
Somewhat important 1 20.0
Very important 2 40.0
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
 All Respondents
BanksPercent
Not important 3 60.0
Somewhat important 1 20.0
Very important 1 20.0
Total 5 100.0

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 20 90.9
The number of inquiries has decreased moderately 2 9.1
The number of inquiries has decreased substantially 0 0.0
Total 22 100.0

The ongoing fiscal and financial strains in Europe may have affected lending conditions and funding options for banks headquartered in Europe and their affiliates and subsidiaries. Question 7 addresses changes in your bank's lending policies toward these banking organizations over the past three months. Question 8 addresses changes in these organizations’ demand for funding.

In answering these questions, please consider banks headquartered in Europe and affiliates and subsidiaries of European banks regardless of the location of those affiliates and subsidiaries.

7. Over the past three months, how have your bank's credit standards and terms for approving applications for loans or credit lines for banks headquartered in Europe and their affiliates and subsidiaries (as described in the introduction to these special questions) changed?

 All Respondents
BanksPercent
Tightened considerably 0 0.0
Tightened somewhat 6 42.9
Remained basically unchanged 8 57.1
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 14 100.0

8. Over the past three months and apart from normal seasonal variation, how has demand for loans at your bank from banks headquartered in Europe and their affiliates and subsidiaries (as described in the introduction to these special questions) changed? (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 13 92.9
Moderately weaker 1 7.1
Substantially weaker 0 0.0
Total 14 100.0

Questions 9-10 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 9 deals with changes in your bank's standards over the past three months. Question 10 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.

9. Over the past three months, how have your bank's credit standards for approving applications for CRE loans changed?

 All Respondents
BanksPercent
Tightened considerably 1 6.3
Tightened somewhat 0 0.0
Remained basically unchanged 14 87.5
Eased somewhat 1 6.3
Eased considerably 0 0.0
Total 16 100.0

10. 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 1 6.7
About the same 10 66.7
Moderately weaker 3 20.0
Substantially weaker 1 6.7
Total 15 100.0

Question 11 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. 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.

11. 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 the 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 1 4.8
Somewhat easier than the midpoint of the range that standards have been during this period 5 23.8
Near the middle of the range that standards have been during this period 8 38.1
Somewhat tighter than the midpoint of the range that standards have been during this period 5 23.8
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 2 9.5
Total 21 100.0

 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 4 21.1
Near the middle of the range that standards have been during this period 6 31.6
Somewhat tighter than the midpoint of the range that standards have been during this period 5 26.3
Significantly tighter than the midpoint of the range that standards have been during this period 2 10.5
Near the tightest level that standards have been during this period 2 10.5
Total 19 100.0
 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 middle of the range that standards have been during this period 7 50.0
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 2 14.3
Near the tightest level that standards have been during this period 2 14.3
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 0 0.0
Near the middle 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 0 0.0
Significantly tighter than the midpoint of the range that standards have been during this period 1 12.5
Near the tightest level that standards have been during this period 3 37.5
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 middle of the range that standards have been during this period 2 18.2
Somewhat tighter than the midpoint of the range that standards have been during this period 1 9.1
Significantly tighter than the midpoint of the range that standards have been during this period 3 27.3
Near the tightest level that standards have been during this period 5 45.5
Total 11 100.0

 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 middle of the range that standards have been during this period 3 30.0
Somewhat tighter than the midpoint of the range that standards have been during this period 2 20.0
Significantly tighter than the midpoint of the range that standards have been during this period 3 30.0
Near the tightest level that standards have been during this period 2 20.0
Total 10 100.0

 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 middle of the range that standards have been during this period 3 30.0
Somewhat tighter than the midpoint of the range that standards have been during this period 3 30.0
Significantly tighter than the midpoint of the range that standards have been during this period 1 10.0
Near the tightest level that standards have been during this period 3 30.0
Total 10 100.0

1. As of March 31, 2012, the 23 respondents had combined assets of $1.1 trillion, compared to $2.1 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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