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Senior Loan Officer Opinion Survey on Bank Lending Practices
October 2016

Survey | Full report (PDF)
Table 1 |Table 2 | Chart data
Table 1 (PDF) | Table 2 (PDF) | Charts (PDF)


Table 1

Senior Loan Officer Opinion Survey on Bank Lending Practices
at Selected Large Banks in the United States 1

(Status of policy as of October 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—to large and middle-market firms and to small firms changed? (If your bank defines firm size differently from the categories suggested below, please use your definitions and indicate what they are.)

A. Standards for large and middle-market firms (annual sales of $50 million or more):

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

3

4.4

2

5.1

1

3.4

Remained basically unchanged

63

92.6

36

92.3

27

93.1

Eased somewhat

2

2.9

1

2.6

1

3.4

Eased considerably

0

0.0

0

0.0

0

0.0

Total

68

100.0

39

100.0

29

100.0

B. Standards for small firms (annual sales of less than $50 million):

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

2

3.0

1

2.7

1

3.3

Remained basically unchanged

62

92.5

34

91.9

28

93.3

Eased somewhat

3

4.5

2

5.4

1

3.3

Eased considerably

0

0.0

0

0.0

0

0.0

Total

67

100.0

37

100.0

30

100.0

2. For applications for C&I loans or credit lines—other than those to be used to finance mergers and acquisitions—from large and middle-market firms and from small firms that your bank currently is willing to approve, how have the terms of those loans changed over the past three months?

A. Terms for large and middle-market firms (annual sales of $50 million or more):

a. Maximum size of credit lines

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

0

0.0

0

0.0

0

0.0

Remained basically unchanged

56

82.4

31

79.5

25

86.2

Eased somewhat

12

17.6

8

20.5

4

13.8

Eased considerably

0

0.0

0

0.0

0

0.0

Total

68

100.0

39

100.0

29

100.0

b. Maximum maturity of loans or credit lines

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

3

4.4

3

7.7

0

0.0

Remained basically unchanged

61

89.7

36

92.3

25

86.2

Eased somewhat

4

5.9

0

0.0

4

13.8

Eased considerably

0

0.0

0

0.0

0

0.0

Total

68

100.0

39

100.0

29

100.0

c. Costs of credit lines

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

8

11.8

8

20.5

0

0.0

Remained basically unchanged

54

79.4

26

66.7

28

96.6

Eased somewhat

6

8.8

5

12.8

1

3.4

Eased considerably

0

0.0

0

0.0

0

0.0

Total

68

100.0

39

100.0

29

100.0

d. Spreads of loan rates over your bank's cost of funds (wider spreads=tightened, narrower spreads=eased)

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

9

13.2

7

17.9

2

6.9

Remained basically unchanged

44

64.7

23

59.0

21

72.4

Eased somewhat

14

20.6

9

23.1

5

17.2

Eased considerably

1

1.5

0

0.0

1

3.4

Total

68

100.0

39

100.0

29

100.0

e. Premiums charged on riskier loans

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

8

11.8

7

17.9

1

3.4

Remained basically unchanged

52

76.5

26

66.7

26

89.7

Eased somewhat

8

11.8

6

15.4

2

6.9

Eased considerably

0

0.0

0

0.0

0

0.0

Total

68

100.0

39

100.0

29

100.0

f. Loan covenants

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

4

5.9

3

7.7

1

3.4

Remained basically unchanged

59

86.8

32

82.1

27

93.1

Eased somewhat

5

7.4

4

10.3

1

3.4

Eased considerably

0

0.0

0

0.0

0

0.0

Total

68

100.0

39

100.0

29

100.0

g. Collateralization requirements

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

2

2.9

2

5.1

0

0.0

Remained basically unchanged

66

97.1

37

94.9

29

100.0

Eased somewhat

0

0.0

0

0.0

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

Total

68

100.0

39

100.0

29

100.0

h. Use of interest rate floors (more use=tightened, less use=eased)

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Tightened considerably

1

1.5

0

0.0

1

3.4

Tightened somewhat

3

4.4

3

7.7

0

0.0

Remained basically unchanged

56

82.4

31

79.5

25

86.2

Eased somewhat

4

5.9

4

10.3

0

0.0

Eased considerably

4

5.9

1

2.6

3

10.3

Total

68

100.0

39

100.0

29

100.0

B. Terms for small firms (annual sales of less than $50 million):

a. Maximum size of credit lines

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

0

0.0

0

0.0

0

0.0

Remained basically unchanged

63

94.0

35

94.6

28

93.3

Eased somewhat

4

6.0

2

5.4

2

6.7

Eased considerably

0

0.0

0

0.0

0

0.0

Total

67

100.0

37

100.0

30

100.0

b. Maximum maturity of loans or credit lines

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

1

1.5

1

2.7

0

0.0

Remained basically unchanged

63

94.0

35

94.6

28

93.3

Eased somewhat

3

4.5

1

2.7

2

6.7

Eased considerably

0

0.0

0

0.0

0

0.0

Total

67

100.0

37

100.0

30

100.0

c. Costs of credit lines

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

7

10.4

5

13.5

2

6.7

Remained basically unchanged

57

85.1

30

81.1

27

90.0

Eased somewhat

3

4.5

2

5.4

1

3.3

Eased considerably

0

0.0

0

0.0

0

0.0

Total

67

100.0

37

100.0

30

100.0

d. Spreads of loan rates over your bank's cost of funds (wider spreads=tightened, narrower spreads=eased)

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

7

10.4

4

10.8

3

10.0

Remained basically unchanged

49

73.1

27

73.0

22

73.3

Eased somewhat

10

14.9

6

16.2

4

13.3

Eased considerably

1

1.5

0

0.0

1

3.3

Total

67

100.0

37

100.0

30

100.0

e. Premiums charged on riskier loans

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

5

7.5

4

10.8

1

3.3

Remained basically unchanged

56

83.6

29

78.4

27

90.0

Eased somewhat

6

9.0

4

10.8

2

6.7

Eased considerably

0

0.0

0

0.0

0

0.0

Total

67

100.0

37

100.0

30

100.0

f. Loan covenants

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

3

4.5

3

8.1

0

0.0

Remained basically unchanged

60

89.6

31

83.8

29

96.7

Eased somewhat

4

6.0

3

8.1

1

3.3

Eased considerably

0

0.0

0

0.0

0

0.0

Total

67

100.0

37

100.0

30

100.0

g. Collateralization requirements

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

2

3.0

2

5.4

0

0.0

Remained basically unchanged

65

97.0

35

94.6

30

100.0

Eased somewhat

0

0.0

0

0.0

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

Total

67

100.0

37

100.0

30

100.0

h. Use of interest rate floors (more use=tightened, less use=eased)

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Tightened considerably

1

1.5

0

0.0

1

3.3

Tightened somewhat

1

1.5

1

2.8

0

0.0

Remained basically unchanged

57

86.4

31

86.1

26

86.7

Eased somewhat

3

4.5

3

8.3

0

0.0

Eased considerably

4

6.1

1

2.8

3

10.0

Total

66

100.0

36

100.0

30

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?

A. Possible reasons for tightening credit standards or loan terms:

a. Deterioration in your bank's current or expected capital position

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Not important

16

88.9

13

92.9

3

75.0

Somewhat important

2

11.1

1

7.1

1

25.0

Very important

0

0.0

0

0.0

0

0.0

Total

18

100.0

14

100.0

4

100.0

b. Less favorable or more uncertain economic outlook

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Not important

6

33.3

5

35.7

1

25.0

Somewhat important

8

44.4

7

50.0

1

25.0

Very important

4

22.2

2

14.3

2

50.0

Total

18

100.0

14

100.0

4

100.0

c. Worsening of industry-specific problems (please specify industries)

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Not important

10

55.6

8

57.1

2

50.0

Somewhat important

3

16.7

2

14.3

1

25.0

Very important

5

27.8

4

28.6

1

25.0

Total

18

100.0

14

100.0

4

100.0

d. Less aggressive competition from other banks or nonbank lenders (other financial intermediaries or the capital markets)

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Not important

13

72.2

10

71.4

3

75.0

Somewhat important

4

22.2

4

28.6

0

0.0

Very important

1

5.6

0

0.0

1

25.0

Total

18

100.0

14

100.0

4

100.0

e. Reduced tolerance for risk

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Not important

10

55.6

8

57.1

2

50.0

Somewhat important

6

33.3

6

42.9

0

0.0

Very important

2

11.1

0

0.0

2

50.0

Total

18

100.0

14

100.0

4

100.0

f. Decreased liquidity in the secondary market for these loans

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Not important

14

77.8

11

78.6

3

75.0

Somewhat important

4

22.2

3

21.4

1

25.0

Very important

0

0.0

0

0.0

0

0.0

Total

18

100.0

14

100.0

4

100.0

g. Deterioration in your bank's current or expected liquidity position

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Not important

16

88.9

13

92.9

3

75.0

Somewhat important

1

5.6

1

7.1

0

0.0

Very important

1

5.6

0

0.0

1

25.0

Total

18

100.0

14

100.0

4

100.0

h. Increased concerns about the effects of legislative changes, supervisory actions, or changes in accounting standards

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Not important

11

64.7

9

64.3

2

66.7

Somewhat important

3

17.6

3

21.4

0

0.0

Very important

3

17.6

2

14.3

1

33.3

Total

17

100.0

14

100.0

3

100.0

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

a. Improvement in your bank's current or expected capital position

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Not important

21

84.0

14

87.5

7

77.8

Somewhat important

3

12.0

1

6.3

2

22.2

Very important

1

4.0

1

6.3

0

0.0

Total

25

100.0

16

100.0

9

100.0

b. More favorable or less uncertain economic outlook

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Not important

17

68.0

11

68.8

6

66.7

Somewhat important

8

32.0

5

31.3

3

33.3

Very important

0

0.0

0

0.0

0

0.0

Total

25

100.0

16

100.0

9

100.0

c. Improvement in industry-specific problems (please specify industries)

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Not important

21

84.0

16

100.0

5

55.6

Somewhat important

3

12.0

0

0.0

3

33.3

Very important

1

4.0

0

0.0

1

11.1

Total

25

100.0

16

100.0

9

100.0

d. More aggressive competition from other banks or nonbank lenders (other financial intermediaries or the capital markets)

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Not important

5

20.0

3

18.8

2

22.2

Somewhat important

8

32.0

6

37.5

2

22.2

Very important

12

48.0

7

43.8

5

55.6

Total

25

100.0

16

100.0

9

100.0

e. Increased tolerance for risk

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Not important

17

65.4

12

70.6

5

55.6

Somewhat important

8

30.8

4

23.5

4

44.4

Very important

1

3.8

1

5.9

0

0.0

Total

26

100.0

17

100.0

9

100.0

f. Increased liquidity in the secondary market for these loans

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Not important

18

72.0

11

68.8

7

77.8

Somewhat important

7

28.0

5

31.3

2

22.2

Very important

0

0.0

0

0.0

0

0.0

Total

25

100.0

16

100.0

9

100.0

g. Improvement in your bank's current or expected liquidity position

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Not important

20

80.0

13

81.3

7

77.8

Somewhat important

4

16.0

3

18.8

1

11.1

Very important

1

4.0

0

0.0

1

11.1

Total

25

100.0

16

100.0

9

100.0

h. Reduced concerns about the effects of legislative changes, supervisory actions, or changes in accounting standards

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Not important

24

96.0

16

100.0

8

88.9

Somewhat important

1

4.0

0

0.0

1

11.1

Very important

0

0.0

0

0.0

0

0.0

Total

25

100.0

16

100.0

9

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.)

A. Demand for C&I loans from large and middle-market firms (annual sales of $50 million or more):

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Substantially stronger

0

0.0

0

0.0

0

0.0

Moderately stronger

12

17.6

8

20.5

4

13.8

About the same

40

58.8

18

46.2

22

75.9

Moderately weaker

13

19.1

10

25.6

3

10.3

Substantially weaker

3

4.4

3

7.7

0

0.0

Total

68

100.0

39

100.0

29

100.0

B. Demand for C&I loans from small firms (annual sales of less than $50 million):

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Substantially stronger

0

0.0

0

0.0

0

0.0

Moderately stronger

11

16.4

4

10.8

7

23.3

About the same

44

65.7

25

67.6

19

63.3

Moderately weaker

9

13.4

5

13.5

4

13.3

Substantially weaker

3

4.5

3

8.1

0

0.0

Total

67

100.0

37

100.0

30

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 4A or 4B), possible reasons:

a. Customer inventory financing needs increased

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Not important

7

46.7

4

50.0

3

42.9

Somewhat important

8

53.3

4

50.0

4

57.1

Very important

0

0.0

0

0.0

0

0.0

Total

15

100.0

8

100.0

7

100.0

b. Customer accounts receivable financing needs increased

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Not important

4

26.7

3

37.5

1

14.3

Somewhat important

11

73.3

5

62.5

6

85.7

Very important

0

0.0

0

0.0

0

0.0

Total

15

100.0

8

100.0

7

100.0

c. Customer investment in plant or equipment increased

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Not important

7

43.8

4

44.4

3

42.9

Somewhat important

5

31.3

3

33.3

2

28.6

Very important

4

25.0

2

22.2

2

28.6

Total

16

100.0

9

100.0

7

100.0

d. Customer internally generated funds decreased

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Not important

14

93.3

7

87.5

7

100.0

Somewhat important

1

6.7

1

12.5

0

0.0

Very important

0

0.0

0

0.0

0

0.0

Total

15

100.0

8

100.0

7

100.0

e. Customer merger or acquisition financing needs increased

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Not important

6

40.0

2

25.0

4

57.1

Somewhat important

4

26.7

2

25.0

2

28.6

Very important

5

33.3

4

50.0

1

14.3

Total

15

100.0

8

100.0

7

100.0

f. Customer borrowing shifted to your bank from other bank or nonbank sources because these other sources became less attractive

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Not important

6

37.5

4

44.4

2

28.6

Somewhat important

7

43.8

2

22.2

5

71.4

Very important

3

18.8

3

33.3

0

0.0

Total

16

100.0

9

100.0

7

100.0

g. Customer precautionary demand for cash and liquidity increased

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Not important

11

78.6

5

62.5

6

100.0

Somewhat important

3

21.4

3

37.5

0

0.0

Very important

0

0.0

0

0.0

0

0.0

Total

14

100.0

8

100.0

6

100.0

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

a. Customer inventory financing needs decreased

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Not important

9

50.0

6

46.2

3

60.0

Somewhat important

9

50.0

7

53.8

2

40.0

Very important

0

0.0

0

0.0

0

0.0

Total

18

100.0

13

100.0

5

100.0

b. Customer accounts receivable financing needs decreased

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Not important

9

50.0

6

46.2

3

60.0

Somewhat important

9

50.0

7

53.8

2

40.0

Very important

0

0.0

0

0.0

0

0.0

Total

18

100.0

13

100.0

5

100.0

c. Customer investment in plant or equipment decreased

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Not important

3

16.7

2

15.4

1

20.0

Somewhat important

10

55.6

7

53.8

3

60.0

Very important

5

27.8

4

30.8

1

20.0

Total

18

100.0

13

100.0

5

100.0

d. Customer internally generated funds increased

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Not important

12

66.7

9

69.2

3

60.0

Somewhat important

6

33.3

4

30.8

2

40.0

Very important

0

0.0

0

0.0

0

0.0

Total

18

100.0

13

100.0

5

100.0

e. Customer merger or acquisition financing needs decreased

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Not important

8

44.4

4

30.8

4

80.0

Somewhat important

8

44.4

7

53.8

1

20.0

Very important

2

11.1

2

15.4

0

0.0

Total

18

100.0

13

100.0

5

100.0

f. Customer borrowing shifted from your bank to other bank or nonbank sources because these other sources became more attractive

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Not important

8

44.4

6

46.2

2

40.0

Somewhat important

6

33.3

5

38.5

1

20.0

Very important

4

22.2

2

15.4

2

40.0

Total

18

100.0

13

100.0

5

100.0

g. Customer precautionary demand for cash and liquidity decreased

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Not important

15

83.3

11

84.6

4

80.0

Somewhat important

3

16.7

2

15.4

1

20.0

Very important

0

0.0

0

0.0

0

0.0

Total

18

100.0

13

100.0

5

100.0

6. At your bank, apart from 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

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

The number of inquiries has increased substantially

0

0.0

0

0.0

0

0.0

The number of inquiries has increased moderately

14

20.6

6

15.8

8

26.7

The number of inquiries has stayed about the same

44

64.7

25

65.8

19

63.3

The number of inquiries has decreased moderately

8

11.8

5

13.2

3

10.0

The number of inquiries has decreased substantially

2

2.9

2

5.3

0

0.0

Total

68

100.0

38

100.0

30

100.0

Questions 7-8 follow up on your bank's responses regarding whether stronger (weaker) demand for C&I loans was in part a result of customer borrowing shifting to (from) your bank from (to) other bank or nonbank sources because these other sources became less (more) attractive (as described in question 5).

7. If your bank responded that demand for C&I loans has strengthened over the past three months and that customer borrowing has shifted to your bank from other bank or nonbank sources because those other sources became less attractive (answer 2 or 3 to question 5A.f), how important have been the following possible reasons for the change? When considering price terms, please consider the cost of credit lines, spreads of loan rates over your bank’s cost of funds, premiums charged on riskier loans, the use of interest rate floors, or other price terms. When considering nonprice terms, please consider the maximum size of credit lines, the maximum maturity of loans or credit lines, loan covenants, collateralization requirements, or other nonprice terms.

a. Other commercial banks' price terms became less attractive

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Not important

4

40.0

2

40.0

2

40.0

Somewhat important

6

60.0

3

60.0

3

60.0

Very important

0

0.0

0

0.0

0

0.0

Total

10

100.0

5

100.0

5

100.0

b. Other commercial banks' nonprice terms became less attractive

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Not important

2

20.0

1

20.0

1

20.0

Somewhat important

7

70.0

4

80.0

3

60.0

Very important

1

10.0

0

0.0

1

20.0

Total

10

100.0

5

100.0

5

100.0

c. Nonbanks' (such as insurance companies, pension funds, and other nonbank financial institutions) price terms became less attractive

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Not important

4

40.0

2

40.0

2

40.0

Somewhat important

5

50.0

2

40.0

3

60.0

Very important

1

10.0

1

20.0

0

0.0

Total

10

100.0

5

100.0

5

100.0

d. Nonbanks' (such as insurance companies, pension funds, and other nonbank financial institutions) nonprice terms became less attractive

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Not important

6

66.7

3

75.0

3

60.0

Somewhat important

2

22.2

0

0.0

2

40.0

Very important

1

11.1

1

25.0

0

0.0

Total

9

100.0

4

100.0

5

100.0

e. Corporate bond market price terms became less attractive

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Not important

7

87.5

3

100.0

4

80.0

Somewhat important

1

12.5

0

0.0

1

20.0

Very important

0

0.0

0

0.0

0

0.0

Total

8

100.0

3

100.0

5

100.0

f. Corporate bond market nonprice terms became less attractive

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Not important

7

87.5

3

100.0

4

80.0

Somewhat important

1

12.5

0

0.0

1

20.0

Very important

0

0.0

0

0.0

0

0.0

Total

8

100.0

3

100.0

5

100.0

8. If your bank responded that demand for C&I loans has weakened over the past three months and that customer borrowing has shifted from your bank to other bank or nonbank sources because those other sources became more attractive (answer 2 or 3 to question 5B.f), how important have been the following possible reasons for the change? When considering price terms, please consider the cost of credit lines, spreads of loan rates over your bank’s cost of funds, premiums charged on riskier loans, the use of interest rate floors, or other price terms. When considering nonprice terms, please consider the maximum size of credit lines, the maximum maturity of loans or credit lines, loan covenants, collateralization requirements, or other nonprice terms.

a. Other commercial banks' price terms became more attractive

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Not important

4

36.4

2

28.6

2

50.0

Somewhat important

6

54.5

4

57.1

2

50.0

Very important

1

9.1

1

14.3

0

0.0

Total

11

100.0

7

100.0

4

100.0

b. Other commercial banks' nonprice terms became more attractive

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Not important

6

54.5

3

42.9

3

75.0

Somewhat important

3

27.3

2

28.6

1

25.0

Very important

2

18.2

2

28.6

0

0.0

Total

11

100.0

7

100.0

4

100.0

c. Nonbanks' (such as insurance companies, pension funds, and other nonbank financial institutions) price terms became more attractive

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Not important

4

36.4

3

42.9

1

25.0

Somewhat important

4

36.4

3

42.9

1

25.0

Very important

3

27.3

1

14.3

2

50.0

Total

11

100.0

7

100.0

4

100.0

d. Nonbanks' (such as insurance companies, pension funds, and other nonbank financial institutions) nonprice terms became more attractive

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Not important

5

45.5

4

57.1

1

25.0

Somewhat important

3

27.3

1

14.3

2

50.0

Very important

3

27.3

2

28.6

1

25.0

Total

11

100.0

7

100.0

4

100.0

e. Corporate bond market price terms became more attractive

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Not important

7

63.6

3

42.9

4

100.0

Somewhat important

2

18.2

2

28.6

0

0.0

Very important

2

18.2

2

28.6

0

0.0

Total

11

100.0

7

100.0

4

100.0

f. Corporate bond market nonprice terms became more attractive

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Not important

10

90.9

6

85.7

4

100.0

Somewhat important

1

9.1

1

14.3

0

0.0

Very important

0

0.0

0

0.0

0

0.0

Total

11

100.0

7

100.0

4

100.0

Question 9 asks about your bank's outlook for the demand for C&I loans over the next six months compared to current conditions.

9. Assuming that economic activity progresses in line with consensus forecasts, what is your outlook for the demand for C&I loans over the next six months compared to current conditions, apart from normal seasonal variation?

A. Compared to current conditions, over the next six months, demand for C&I loans from large and middle-market firms (annual sales of $50 million or more) is likely to:

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Strengthen substantially

0

0.0

0

0.0

0

0.0

Strengthen somewhat

8

11.8

5

12.8

3

10.3

Remain around current levels

52

76.5

29

74.4

23

79.3

Weaken somewhat

8

11.8

5

12.8

3

10.3

Weaken substantially

0

0.0

0

0.0

0

0.0

My bank does not originate this type of loan

0

0.0

0

0.0

0

0.0

Total

68

100.0

39

100.0

29

100.0

B. Compared to current conditions, over the next six months, demand for C&I loans from small firms (annual sales of less than $50 million) is likely to:

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Strengthen substantially

0

0.0

0

0.0

0

0.0

Strengthen somewhat

9

13.2

5

13.2

4

13.3

Remain around current levels

52

76.5

28

73.7

24

80.0

Weaken somewhat

6

8.8

4

10.5

2

6.7

Weaken substantially

0

0.0

0

0.0

0

0.0

My bank does not originate this type of loan

1

1.5

1

2.6

0

0.0

Total

68

100.0

38

100.0

30

100.0

Questions 10-15 ask about changes in standards and demand over the past three months for three different types of commercial real estate (CRE) loans at your bank: construction and land development loans, loans secured by nonfarm nonresidential properties, and loans secured by multifamily residential properties. Please report changes in enforcement of existing policies as changes in policies.

10. Over the past three months, how have your bank's credit standards for approving new applications for construction and land development loans or credit lines changed?

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Tightened considerably

1

1.4

0

0.0

1

3.3

Tightened somewhat

20

29.0

14

35.9

6

20.0

Remained basically unchanged

46

66.7

24

61.5

22

73.3

Eased somewhat

2

2.9

1

2.6

1

3.3

Eased considerably

0

0.0

0

0.0

0

0.0

Total

69

100.0

39

100.0

30

100.0

11. Over the past three months, how have your bank's credit standards for approving new applications for loans secured by nonfarm nonresidential properties changed?

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

14

20.3

10

25.6

4

13.3

Remained basically unchanged

54

78.3

29

74.4

25

83.3

Eased somewhat

1

1.4

0

0.0

1

3.3

Eased considerably

0

0.0

0

0.0

0

0.0

Total

69

100.0

39

100.0

30

100.0

12. Over the past three months, how have your bank's credit standards for approving new applications for loans secured by multifamily residential properties changed?

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Tightened considerably

5

7.2

3

7.7

2

6.7

Tightened somewhat

26

37.7

14

35.9

12

40.0

Remained basically unchanged

36

52.2

21

53.8

15

50.0

Eased somewhat

2

2.9

1

2.6

1

3.3

Eased considerably

0

0.0

0

0.0

0

0.0

Total

69

100.0

39

100.0

30

100.0

13. Apart from normal seasonal variation, how has demand for construction and land development loans changed over the past three months? (Please consider the number of requests for new spot loans, for disbursement of funds under existing loan commitments, and for new or increased credit lines.)

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Substantially stronger

0

0.0

0

0.0

0

0.0

Moderately stronger

18

26.1

7

17.9

11

36.7

About the same

40

58.0

23

59.0

17

56.7

Moderately weaker

11

15.9

9

23.1

2

6.7

Substantially weaker

0

0.0

0

0.0

0

0.0

Total

69

100.0

39

100.0

30

100.0

14. Apart from normal seasonal variation, how has demand for loans secured by nonfarm nonresidential properties changed over the past three months? (Please consider the number of requests for new spot loans, for disbursement of funds under existing loan commitments, and for new or increased credit lines.)

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Substantially stronger

0

0.0

0

0.0

0

0.0

Moderately stronger

9

13.0

6

15.4

3

10.0

About the same

54

78.3

27

69.2

27

90.0

Moderately weaker

6

8.7

6

15.4

0

0.0

Substantially weaker

0

0.0

0

0.0

0

0.0

Total

69

100.0

39

100.0

30

100.0

15. Apart from normal seasonal variation, how has demand for loans secured by multifamily residential properties changed over the past three months? (Please consider the number of requests for new spot loans, for disbursement of funds under existing loan commitments, and for new or increased credit lines.)

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Substantially stronger

0

0.0

0

0.0

0

0.0

Moderately stronger

12

17.4

5

12.8

7

23.3

About the same

47

68.1

26

66.7

21

70.0

Moderately weaker

9

13.0

7

17.9

2

6.7

Substantially weaker

1

1.4

1

2.6

0

0.0

Total

69

100.0

39

100.0

30

100.0

Note: Beginning with the January 2015 survey, the loan categories referred to in the questions regarding changes in credit standards and demand for residential mortgage loans have been revised to reflect the Consumer Financial Protection Bureau’s qualified mortgage rules.

Questions 16-17 ask about seven categories of residential mortgage loans at your bank: Government-Sponsored Enterprise eligible (GSE-eligible) residential mortgages, government residential mortgages, Qualified Mortgage non-jumbo non-GSE-eligible (QM non-jumbo, non-GSE-eligible) residential mortgages, QM jumbo residential mortgages, non-QM jumbo residential mortgages, non-QM non-jumbo residential mortgages, and subprime residential mortgages.

For the purposes of this survey, please use the following definitions of these loan categories and include first-lien closed-end loans to purchase homes only. The loan categories have been defined so that every first-lien closed-end residential mortgage loan used for home purchase fits into one of the following seven categories:

Question 16 deals with changes in your bank's credit standards for loans in each of the seven loan categories over the past three months. If your bank's credit standards have not changed over the relevant period, please report them as unchanged even if the standards are either restrictive or accommodative relative to longer-term norms. If your bank's credit standards 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. Question 17 deals with changes in demand for loans in each of the seven loan categories over the past three months.

16. Over the past three months, how have your bank's credit standards for approving applications from individuals for mortgage loans to purchase homes changed? (Please consider only new originations as opposed to the refinancing of existing mortgages.)

A. Credit standards on mortgage loans that your bank categorizes as GSE-eligible residential mortgages have:

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

0

0.0

0

0.0

0

0.0

Remained basically unchanged

56

88.9

30

88.2

26

89.7

Eased somewhat

7

11.1

4

11.8

3

10.3

Eased considerably

0

0.0

0

0.0

0

0.0

Total

63

100.0

34

100.0

29

100.0

For this question, 3 respondents answered “My bank does not originate GSE-eligible residential mortgages.”

B. Credit standards on mortgage loans that your bank categorizes as government residential mortgages have:

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

1

1.8

1

3.3

0

0.0

Remained basically unchanged

55

96.5

28

93.3

27

100.0

Eased somewhat

1

1.8

1

3.3

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

Total

57

100.0

30

100.0

27

100.0

For this question, 9 respondents answered “My bank does not originate government residential mortgages.”

C. Credit standards on mortgage loans that your bank categorizes as QM non-jumbo, non-GSE-eligible residential mortgages have:

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

0

0.0

0

0.0

0

0.0

Remained basically unchanged

57

95.0

31

93.9

26

96.3

Eased somewhat

3

5.0

2

6.1

1

3.7

Eased considerably

0

0.0

0

0.0

0

0.0

Total

60

100.0

33

100.0

27

100.0

For this question, 6 respondents answered “My bank does not originate QM non-jumbo, non-GSE-eligible residential mortgages.”

D. Credit standards on mortgage loans that your bank categorizes as QM jumbo residential mortgages have:

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

1

1.6

0

0.0

1

3.4

Remained basically unchanged

57

90.5

31

91.2

26

89.7

Eased somewhat

5

7.9

3

8.8

2

6.9

Eased considerably

0

0.0

0

0.0

0

0.0

Total

63

100.0

34

100.0

29

100.0

For this question, 3 respondents answered “My bank does not originate QM jumbo residential mortgages.”

E. Credit standards on mortgage loans that your bank categorizes as non-QM jumbo residential mortgages have:

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

2

3.4

1

3.0

1

4.0

Remained basically unchanged

53

91.4

30

90.9

23

92.0

Eased somewhat

3

5.2

2

6.1

1

4.0

Eased considerably

0

0.0

0

0.0

0

0.0

Total

58

100.0

33

100.0

25

100.0

For this question, 8 respondents answered “My bank does not originate non-QM jumbo residential mortgages.”

F. Credit standards on mortgage loans that your bank categorizes as non-QM non-jumbo residential mortgages have:

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

0

0.0

0

0.0

0

0.0

Remained basically unchanged

56

98.2

32

97.0

24

100.0

Eased somewhat

1

1.8

1

3.0

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

Total

57

100.0

33

100.0

24

100.0

For this question, 9 respondents answered “My bank does not originate non-QM non-jumbo residential mortgages.”

G. Credit standards on mortgage loans that your bank categorizes as subprime residential mortgages have:

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Tightened considerably

0

0.0

0

.

0

0.0

Tightened somewhat

0

0.0

0

.

0

0.0

Remained basically unchanged

4

100.0

0

.

4

100.0

Eased somewhat

0

0.0

0

.

0

0.0

Eased considerably

0

0.0

0

.

0

0.0

Total

4

100.0

0

.

4

100.0

For this question, 61 respondents answered “My bank does not originate subprime residential mortgages.”

17. Apart from normal seasonal variation, how has demand for mortgages to purchase homes changed over the past three months? (Please consider only applications for new originations as opposed to applications for refinancing of existing mortgages.)

A. Demand for mortgages that your bank categorizes as GSE-eligible residential mortgages was:

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Substantially stronger

2

3.2

1

3.0

1

3.4

Moderately stronger

16

25.8

8

24.2

8

27.6

About the same

41

66.1

21

63.6

20

69.0

Moderately weaker

3

4.8

3

9.1

0

0.0

Substantially weaker

0

0.0

0

0.0

0

0.0

Total

62

100.0

33

100.0

29

100.0

For this question, 4 respondents answered “My bank does not originate GSE-eligible residential mortgages.”

B. Demand for mortgages that your bank categorizes as government residential mortgages was:

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Substantially stronger

2

3.5

1

3.3

1

3.7

Moderately stronger

7

12.3

3

10.0

4

14.8

About the same

41

71.9

20

66.7

21

77.8

Moderately weaker

7

12.3

6

20.0

1

3.7

Substantially weaker

0

0.0

0

0.0

0

0.0

Total

57

100.0

30

100.0

27

100.0

For this question, 9 respondents answered “My bank does not originate government residential mortgages.”

C. Demand for mortgages that your bank categorizes as QM non-jumbo, non-GSE-eligible residential mortgages was:

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Substantially stronger

0

0.0

0

0.0

0

0.0

Moderately stronger

9

15.3

6

18.8

3

11.1

About the same

47

79.7

23

71.9

24

88.9

Moderately weaker

2

3.4

2

6.3

0

0.0

Substantially weaker

1

1.7

1

3.1

0

0.0

Total

59

100.0

32

100.0

27

100.0

For this question, 7 respondents answered “My bank does not originate QM non-jumbo, non-GSE-eligible residential mortgages.”

D. Demand for mortgages that your bank categorizes as QM jumbo residential mortgages was:

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Substantially stronger

0

0.0

0

0.0

0

0.0

Moderately stronger

17

27.0

12

35.3

5

17.2

About the same

41

65.1

19

55.9

22

75.9

Moderately weaker

5

7.9

3

8.8

2

6.9

Substantially weaker

0

0.0

0

0.0

0

0.0

Total

63

100.0

34

100.0

29

100.0

For this question, 3 respondents answered “My bank does not originate QM jumbo residential mortgages.”

E. Demand for mortgages that your bank categorizes as non-QM jumbo residential mortgages was:

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Substantially stronger

0

0.0

0

0.0

0

0.0

Moderately stronger

13

22.4

9

28.1

4

15.4

About the same

41

70.7

20

62.5

21

80.8

Moderately weaker

4

6.9

3

9.4

1

3.8

Substantially weaker

0

0.0

0

0.0

0

0.0

Total

58

100.0

32

100.0

26

100.0

For this question, 8 respondents answered “My bank does not originate non-QM jumbo residential mortgages.”

F. Demand for mortgages that your bank categorizes as non-QM non-jumbo residential mortgages was:

 

All Respondents

Large Banks

Other Banks

Banks

Percent

Banks

Percent

Banks

Percent

Substantially stronger

0

0.0

0

0.0

0

0.0

Moderately stronger

7

12.5

4

12.5

3

12.5

About the same

48

85.7

27

84.4

21

87.5

Moderately weaker