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Senior Loan Officer Opinion Survey on Bank Lending Practices

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

(Status of Policy as of October 2018)

 

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 4.3 2 4.3 1 4.3
Remained basically unchanged 52 75.4 34 73.9 18 78.3
Eased somewhat 14 20.3 10 21.7 4 17.4
Eased considerably 0 0.0 0 0.0 0 0.0
Total 69 100 46 100 23 100

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 1 1.5 1 2.4 0 0.0
Tightened somewhat 4 6.2 1 2.4 3 13.0
Remained basically unchanged 53 81.5 35 83.3 18 78.3
Eased somewhat 7 10.8 5 11.9 2 8.7
Eased considerably 0 0.0 0 0.0 0 0.0
Total 65 100 42 100 23 100

For this question, 2 respondents answered "My bank does not originate C&I loans or credit lines to small firms."

 

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 1 1.5 1 2.2 0 0.0
Remained basically unchanged 54 79.4 32 69.6 22 100.0
Eased somewhat 13 19.1 13 28.3 0 0.0
Eased considerably 0 0.0 0 0.0 0 0.0
Total 68 100 46 100 22 100

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 2 3.0 1 2.2 1 4.5
Remained basically unchanged 63 94.0 43 95.6 20 90.9
Eased somewhat 2 3.0 1 2.2 1 4.5
Eased considerably 0 0.0 0 0.0 0 0.0
Total 67 100 45 100 22 100

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 1 1.5 1 2.2 0 0.0
Remained basically unchanged 54 80.6 34 75.6 20 90.9
Eased somewhat 10 14.9 9 20.0 1 4.5
Eased considerably 2 3.0 1 2.2 1 4.5
Total 67 100 45 100 22 100

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 8 11.8 3 6.5 5 22.7
Remained basically unchanged 34 50.0 22 47.8 12 54.5
Eased somewhat 25 36.8 21 45.7 4 18.2
Eased considerably 1 1.5 0 0.0 1 4.5
Total 68 100 46 100 22 100

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 3 4.5 0 0.0 3 14.3
Remained basically unchanged 53 80.3 37 82.2 16 76.2
Eased somewhat 8 12.1 7 15.6 1 4.8
Eased considerably 2 3.0 1 2.2 1 4.8
Total 66 100 45 100 21 100

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 2 2.9 0 0.0 2 9.1
Remained basically unchanged 49 72.1 31 67.4 18 81.8
Eased somewhat 17 25.0 15 32.6 2 9.1
Eased considerably 0 0.0 0 0.0 0 0.0
Total 68 100 46 100 22 100

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 0 0.0 0 0.0 0 0.0
Remained basically unchanged 64 95.5 44 97.8 20 90.9
Eased somewhat 3 4.5 1 2.2 2 9.1
Eased considerably 0 0.0 0 0.0 0 0.0
Total 67 100 45 100 22 100

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 0 0.0 0 0.0 0 0.0
Tightened somewhat 2 3.1 1 2.3 1 4.8
Remained basically unchanged 58 90.6 39 90.7 19 90.5
Eased somewhat 4 6.2 3 7.0 1 4.8
Eased considerably 0 0.0 0 0.0 0 0.0
Total 64 100 43 100 21 100

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 1 1.6 1 2.4 0 0.0
Remained basically unchanged 58 92.1 36 87.8 22 100.0
Eased somewhat 4 6.3 4 9.8 0 0.0
Eased considerably 0 0.0 0 0.0 0 0.0
Total 63 100 41 100 22 100

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 4.8 2 4.9 1 4.5
Remained basically unchanged 55 87.3 35 85.4 20 90.9
Eased somewhat 5 7.9 4 9.8 1 4.5
Eased considerably 0 0.0 0 0.0 0 0.0
Total 63 100 41 100 22 100

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 2 3.2 1 2.4 1 4.5
Remained basically unchanged 55 87.3 36 87.8 19 86.4
Eased somewhat 4 6.3 3 7.3 1 4.5
Eased considerably 2 3.2 1 2.4 1 4.5
Total 63 100 41 100 22 100

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 5 7.9 2 4.9 3 13.6
Remained basically unchanged 40 63.5 25 61.0 15 68.2
Eased somewhat 17 27.0 14 34.1 3 13.6
Eased considerably 1 1.6 0 0.0 1 4.5
Total 63 100 41 100 22 100

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 7.9 2 4.9 3 13.6
Remained basically unchanged 51 81.0 34 82.9 17 77.3
Eased somewhat 5 7.9 4 9.8 1 4.5
Eased considerably 2 3.2 1 2.4 1 4.5
Total 63 100 41 100 22 100

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 1 1.6 0 0.0 1 4.5
Remained basically unchanged 55 87.3 36 87.8 19 86.4
Eased somewhat 7 11.1 5 12.2 2 9.1
Eased considerably 0 0.0 0 0.0 0 0.0
Total 63 100 41 100 22 100

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 3.2 1 2.5 1 4.3
Remained basically unchanged 60 95.2 39 97.5 21 91.3
Eased somewhat 1 1.6 0 0.0 1 4.3
Eased considerably 0 0.0 0 0.0 0 0.0
Total 63 100 40 100 23 100

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 0 0.0 0 0.0 0 0.0
Tightened somewhat 2 3.2 1 2.5 1 4.5
Remained basically unchanged 57 91.9 37 92.5 20 90.9
Eased somewhat 3 4.8 2 5.0 1 4.5
Eased considerably 0 0.0 0 0.0 0 0.0
Total 62 100 40 100 22 100

 

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.)

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 8 100.0 3 100.0 5 100.0
Somewhat important 0 0.0 0 0.0 0 0.0
Very important 0 0.0 0 0.0 0 0.0
Total 8 100 3 100 5 100

b. Less favorable or more uncertain economic outlook

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 3 37.5 0 0.0 3 60.0
Somewhat important 3 37.5 2 66.7 1 20.0
Very important 2 25.0 1 33.3 1 20.0
Total 8 100 3 100 5 100

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

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 4 50.0 1 33.3 3 60.0
Somewhat important 2 25.0 0 0.0 2 40.0
Very important 2 25.0 2 66.7 0 0.0
Total 8 100 3 100 5 100

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 7 87.5 2 66.7 5 100.0
Somewhat important 1 12.5 1 33.3 0 0.0
Very important 0 0.0 0 0.0 0 0.0
Total 8 100 3 100 5 100

e. Reduced tolerance for risk

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 6 75.0 2 66.7 4 80.0
Somewhat important 2 25.0 1 33.3 1 20.0
Very important 0 0.0 0 0.0 0 0.0
Total 8 100 3 100 5 100

f. Decreased liquidity in the secondary market for these loans

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 7 87.5 2 66.7 5 100.0
Somewhat important 1 12.5 1 33.3 0 0.0
Very important 0 0.0 0 0.0 0 0.0
Total 8 100 3 100 5 100

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 6 75.0 3 100.0 3 60.0
Somewhat important 2 25.0 0 0.0 2 40.0
Very important 0 0.0 0 0.0 0 0.0
Total 8 100 3 100 5 100

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 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 3 100 5 100

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 26 96.3 20 95.2 6 100.0
Somewhat important 1 3.7 1 4.8 0 0.0
Very important 0 0.0 0 0.0 0 0.0
Total 27 100 21 100 6 100

b. More favorable or less uncertain economic outlook

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 20 71.4 16 72.7 4 66.7
Somewhat important 7 25.0 6 27.3 1 16.7
Very important 1 3.6 0 0.0 1 16.7
Total 28 100 22 100 6 100

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

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 23 85.2 17 81.0 6 100.0
Somewhat important 3 11.1 3 14.3 0 0.0
Very important 1 3.7 1 4.8 0 0.0
Total 27 100 21 100 6 100

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 0 0.0 0 0.0 0 0.0
Somewhat important 16 55.2 11 47.8 5 83.3
Very important 13 44.8 12 52.2 1 16.7
Total 29 100 23 100 6 100

e. Increased tolerance for risk

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 19 67.9 14 63.6 5 83.3
Somewhat important 7 25.0 6 27.3 1 16.7
Very important 2 7.1 2 9.1 0 0.0
Total 28 100 22 100 6 100

f. Increased liquidity in the secondary market for these loans

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 22 81.5 17 81.0 5 83.3
Somewhat important 4 14.8 3 14.3 1 16.7
Very important 1 3.7 1 4.8 0 0.0
Total 27 100 21 100 6 100

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 26 96.3 20 95.2 6 100.0
Somewhat important 1 3.7 1 4.8 0 0.0
Very important 0 0.0 0 0.0 0 0.0
Total 27 100 21 100 6 100

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 23 85.2 18 85.7 5 83.3
Somewhat important 4 14.8 3 14.3 1 16.7
Very important 0 0.0 0 0.0 0 0.0
Total 27 100 21 100 6 100

 

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 17.4 11 23.9 1 4.3
About the same 35 50.7 19 41.3 16 69.6
Moderately weaker 22 31.9 16 34.8 6 26.1
Substantially weaker 0 0.0 0 0.0 0 0.0
Total 69 100 46 100 23 100

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 9 13.8 7 16.7 2 8.7
About the same 40 61.5 24 57.1 16 69.6
Moderately weaker 16 24.6 11 26.2 5 21.7
Substantially weaker 0 0.0 0 0.0 0 0.0
Total 65 100 42 100 23 100

 

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 respond to either A, B, or both as appropriate.)

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 5 38.5 5 45.5 0 0.0
Somewhat important 8 61.5 6 54.5 2 100.0
Very important 0 0.0 0 0.0 0 0.0
Total 13 100 11 100 2 100

b. Customer accounts receivable financing needs increased

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 3 23.1 3 27.3 0 0.0
Somewhat important 10 76.9 8 72.7 2 100.0
Very important 0 0.0 0 0.0 0 0.0
Total 13 100 11 100 2 100

c. Customer investment in plant or equipment increased

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 2 14.3 1 8.3 1 50.0
Somewhat important 11 78.6 10 83.3 1 50.0
Very important 1 7.1 1 8.3 0 0.0
Total 14 100 12 100 2 100

d. Customer internally generated funds decreased

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 12 92.3 10 90.9 2 100.0
Somewhat important 1 7.7 1 9.1 0 0.0
Very important 0 0.0 0 0.0 0 0.0
Total 13 100 11 100 2 100

e. Customer merger or acquisition financing needs increased

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 4 28.6 3 25.0 1 50.0
Somewhat important 8 57.1 7 58.3 1 50.0
Very important 2 14.3 2 16.7 0 0.0
Total 14 100 12 100 2 100

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 9 69.2 7 63.6 2 100.0
Somewhat important 4 30.8 4 36.4 0 0.0
Very important 0 0.0 0 0.0 0 0.0
Total 13 100 11 100 2 100

g. Customer precautionary demand for cash and liquidity increased

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 10 90.9 8 88.9 2 100.0
Somewhat important 1 9.1 1 11.1 0 0.0
Very important 0 0.0 0 0.0 0 0.0
Total 11 100 9 100 2 100

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 13 65.0 9 64.3 4 66.7
Somewhat important 7 35.0 5 35.7 2 33.3
Very important 0 0.0 0 0.0 0 0.0
Total 20 100 14 100 6 100

b. Customer accounts receivable financing needs decreased

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 13 68.4 9 69.2 4 66.7
Somewhat important 6 31.6 4 30.8 2 33.3
Very important 0 0.0 0 0.0 0 0.0
Total 19 100 13 100 6 100

c. Customer investment in plant or equipment decreased

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 9 45.0 6 42.9 3 50.0
Somewhat important 10 50.0 7 50.0 3 50.0
Very important 1 5.0 1 7.1 0 0.0
Total 20 100 14 100 6 100

d. Customer internally generated funds increased

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 4 19.0 2 13.3 2 33.3
Somewhat important 15 71.4 11 73.3 4 66.7
Very important 2 9.5 2 13.3 0 0.0
Total 21 100 15 100 6 100

e. Customer merger or acquisition financing needs decreased

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 11 52.4 6 40.0 5 83.3
Somewhat important 9 42.9 8 53.3 1 16.7
Very important 1 4.8 1 6.7 0 0.0
Total 21 100 15 100 6 100

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 38.1 6 40.0 2 33.3
Somewhat important 11 52.4 7 46.7 4 66.7
Very important 2 9.5 2 13.3 0 0.0
Total 21 100 15 100 6 100

g. Customer precautionary demand for cash and liquidity decreased

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 14 70.0 9 64.3 5 83.3
Somewhat important 6 30.0 5 35.7 1 16.7
Very important 0 0.0 0 0.0 0 0.0
Total 20 100 14 100 6 100

 

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 9 13.0 8 17.4 1 4.3
The number of inquiries has stayed about the same 41 59.4 26 56.5 15 65.2
The number of inquiries has decreased moderately 19 27.5 12 26.1 7 30.4
The number of inquiries has decreased substantially 0 0.0 0 0.0 0 0.0
Total 69 100 46 100 23 100

 

Questions 7-12 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.

 

7. 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 0 0.0 0 0.0 0 0.0
Tightened somewhat 6 9.0 3 6.8 3 13.0
Remained basically unchanged 59 88.1 40 90.9 19 82.6
Eased somewhat 2 3.0 1 2.3 1 4.3
Eased considerably 0 0.0 0 0.0 0 0.0
Total 67 100 44 100 23 100

For this question, 1 respondent answered "My bank does not originate construction and land development loans or credit lines."

 

8. 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 6 8.8 3 6.7 3 13.0
Remained basically unchanged 58 85.3 39 86.7 19 82.6
Eased somewhat 4 5.9 3 6.7 1 4.3
Eased considerably 0 0.0 0 0.0 0 0.0
Total 68 100 45 100 23 100

 

9. 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 1 1.5 1 2.2 0 0.0
Tightened somewhat 4 5.9 1 2.2 3 13.0
Remained basically unchanged 60 88.2 40 88.9 20 87.0
Eased somewhat 3 4.4 3 6.7 0 0.0
Eased considerably 0 0.0 0 0.0 0 0.0
Total 68 100 45 100 23 100

 

10. 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 4 6.0 3 6.8 1 4.3
About the same 47 70.1 30 68.2 17 73.9
Moderately weaker 16 23.9 11 25.0 5 21.7
Substantially weaker 0 0.0 0 0.0 0 0.0
Total 67 100 44 100 23 100

 

11. 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 3 4.4 1 2.2 2 8.7
About the same 55 80.9 37 82.2 18 78.3
Moderately weaker 10 14.7 7 15.6 3 13.0
Substantially weaker 0 0.0 0 0.0 0 0.0
Total 68 100 45 100 23 100

 

12. 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 6 8.8 5 11.1 1 4.3
About the same 53 77.9 34 75.6 19 82.6
Moderately weaker 9 13.2 6 13.3 3 13.0
Substantially weaker 0 0.0 0 0.0 0 0.0
Total 68 100 45 100 23 100

 

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 13-14 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:

  • The GSE-eligible category of residential mortgages includes loans that meet the underwriting guidelines, including loan limit amounts, of the GSEs - Fannie Mae and Freddie Mac.
     
  • The government category of residential mortgages includes loans that are insured by the Federal Housing Administration, guaranteed by the Department of Veterans Affairs, or originated under government programs, including the U.S. Department of Agriculture home loan programs.
     
  • The QM non-jumbo, non-GSE-eligible category of residential mortgages includes loans that satisfy the standards for a qualified mortgage and have loan balances that are below the loan limit amounts set by the GSEs but otherwise do not meet the GSE underwriting guidelines.
     
  • The QM jumbo category of residential mortgages includes loans that satisfy the standards for a qualified mortgage but have loan balances that are above the loan limit amount set by the GSEs.
     
  • The non-QM jumbo category of residential mortgages includes loans that do not satisfy the standards for a qualified mortgage and have loan balances that are above the loan limit amount set by the GSEs.
     
  • The non-QM non-jumbo category of residential mortgages includes loans that do not satisfy the standards for a qualified mortgage and have loan balances that are below the loan limit amount set by the GSEs. (Please exclude loans classified by your bank as subprime in this category.)
     
  • The subprime category of residential mortgages includes loans classified by your bank as subprime. This category typically includes loans made to borrowers with weakened credit histories that include payment delinquencies, charge-offs, judgements, and/or bankruptcies; reduced repayment capacity as measured by credit scores or debt-to-income ratios; or incomplete credit histories.


Question 13 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 14 deals with changes in demand for loans in each of the seven loan categories over the past three months.

 

13. 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 55 88.7 33 86.8 22 91.7
Eased somewhat 7 11.3 5 13.2 2 8.3
Eased considerably 0 0.0 0 0.0 0 0.0
Total 62 100 38 100 24 100

For this question, 6 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 0 0.0 0 0.0 0 0.0
Remained basically unchanged 51 87.9 31 88.6 20 87.0
Eased somewhat 7 12.1 4 11.4 3 13.0
Eased considerably 0 0.0 0 0.0 0 0.0
Total 58 100 35 100 23 100

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 1 1.8 0 0.0 1 4.8
Remained basically unchanged 51 91.1 33 94.3 18 85.7
Eased somewhat 4 7.1 2 5.7 2 9.5
Eased considerably 0 0.0 0 0.0 0 0.0
Total 56 100 35 100 21 100

For this question, 11 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 2 3.3 0 0.0 2 8.7
Remained basically unchanged 50 83.3 32 86.5 18 78.3
Eased somewhat 8 13.3 5 13.5 3 13.0
Eased considerably 0 0.0 0 0.0 0 0.0
Total 60 100 37 100 23 100

For this question, 6 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 3 5.3 0 0.0 3 15.8
Remained basically unchanged 47 82.5 34 89.5 13 68.4
Eased somewhat 7 12.3 4 10.5 3 15.8
Eased considerably 0 0.0 0 0.0 0 0.0
Total 57 100 38 100 19 100

For this question, 9 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 2 3.6 0 0.0 2 10.5
Remained basically unchanged 49 89.1 35 97.2 14 73.7
Eased somewhat 4 7.3 1 2.8 3 15.8
Eased considerably 0 0.0 0 0.0 0 0.0
Total 55 100 36 100 19 100

For this question, 12 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:

Responses are not reported when the number of respondents is 3 or fewer.

 

14. 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 0 0.0 0 0.0 0 0.0
Moderately stronger 6 9.8 4 10.8 2 8.3
About the same 36 59.0 21 56.8 15 62.5
Moderately weaker 18 29.5 11 29.7 7 29.2
Substantially weaker 1 1.6 1 2.7 0 0.0
Total 61 100 37 100 24 100

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 0 0.0 0 0.0 0 0.0
Moderately stronger 2 3.5 2 5.7 0 0.0
About the same 34 59.6 19 54.3 15 68.2
Moderately weaker 19 33.3 12 34.3 7 31.8
Substantially weaker 2 3.5 2 5.7 0 0.0
Total 57 100 35 100 22 100

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 4 7.1 2 5.7 2 9.5
About the same 32 57.1 20 57.1 12 57.1
Moderately weaker 19 33.9 12 34.3 7 33.3
Substantially weaker 1 1.8 1 2.9 0 0.0
Total 56 100 35 100 21 100

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 7 11.7 5 13.5 2 8.7
About the same 37 61.7 20 54.1 17 73.9
Moderately weaker 15 25.0 11 29.7 4 17.4
Substantially weaker 1 1.7 1 2.7 0 0.0
Total 60 100 37 100 23 100

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 6 10.3 4 10.5 2 10.0
About the same 40 69.0 25 65.8 15 75.0
Moderately weaker 11 19.0 8 21.1 3 15.0
Substantially weaker 1 1.7 1 2.6 0 0.0
Total 58 100 38 100 20 100

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 4 7.3 2 5.6 2 10.5
About the same 37 67.3 25 69.4 12 63.2
Moderately weaker 13 23.6 8 22.2 5 26.3
Substantially weaker 1 1.8 1 2.8 0 0.0
Total 55 100 36 100 19 100

G. Demand for mortgages that your bank categorizes as subprime residential mortgages was:

Responses are not reported when the number of respondents is 3 or fewer.

 

Questions 15-16 ask about revolving home equity lines of credit at your bank. Question 15 deals with changes in your bank's credit standards over the past three months. Question 16 deals with changes in demand. If your bank's credit standards 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 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.

15. Over the past three months, how have your bank's credit standards for approving applications for revolving home equity lines of credit 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 2 3.2 2 5.0 0 0.0
Remained basically unchanged 60 95.2 38 95.0 22 95.7
Eased somewhat 1 1.6 0 0.0 1 4.3
Eased considerably 0 0.0 0 0.0 0 0.0
Total 63 100 40 100 23 100

For this question, 4 respondents answered "My bank does not originate revolving home equity lines of credit."

 

16. Apart from normal seasonal variation, how has demand for revolving home equity lines of credit 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 Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Substantially stronger 0 0.0 0 0.0 0 0.0
Moderately stronger 5 7.9 4 10.0 1 4.3
About the same 42 66.7 23 57.5 19 82.6
Moderately weaker 16 25.4 13 32.5 3 13.0
Substantially weaker 0 0.0 0 0.0 0 0.0
Total 63 100 40 100 23 100

 

Questions 17-26 ask about consumer lending at your bank. Question 17 deals with changes in your bank's willingness to make consumer loans over the past three months. Questions 18-23 deal with changes in credit standards and loan terms over the same period. Questions 24-26 deal with changes in demand for consumer loans over the past three months. 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.

 

17. Please indicate your bank's willingness to make consumer installment loans now as opposed to three months ago.

 

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Much more willing 1 1.8 1 2.9 0 0.0
Somewhat more willing 7 12.3 5 14.7 2 8.7
About unchanged 49 86.0 28 82.4 21 91.3
Somewhat less willing 0 0.0 0 0.0 0 0.0
Much less willing 0 0.0 0 0.0 0 0.0
Total 57 100 34 100 23 100

For this question, 11 respondents answered "My bank does not originate consumer installment loans."

 

18. Over the past three months, how have your bank's credit standards for approving applications for credit cards from individuals or households 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 2 4.3 2 6.2 0 0.0
Remained basically unchanged 41 89.1 28 87.5 13 92.9
Eased somewhat 3 6.5 2 6.2 1 7.1
Eased considerably 0 0.0 0 0.0 0 0.0
Total 46 100 32 100 14 100

For this question, 21 respondents answered "My bank does not originate credit card loans to individuals or households."

 

19. Over the past three months, how have your bank's credit standards for approving applications for auto loans to individuals or households changed? (Please include loans arising from retail sales of passenger cars and other vehicles such as minivans, vans, sport-utility vehicles, pickup trucks, and similar light trucks for personal use, whether new or used. Please exclude loans to finance fleet sales, personal cash loans secured by automobiles already paid for, loans to finance the purchase of commercial vehicles and farm equipment, and lease financing.)

 

  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 9.1 4 12.5 1 4.3
Remained basically unchanged 47 85.5 25 78.1 22 95.7
Eased somewhat 3 5.5 3 9.4 0 0.0
Eased considerably 0 0.0 0 0.0 0 0.0
Total 55 100 32 100 23 100

For this question, 12 respondents answered "My bank does not originate auto loans to individuals or households."

 

20. Over the past three months, how have your bank's credit standards for approving applications for consumer loans other than credit card and auto loans 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 2 3.6 1 3.1 1 4.2
Remained basically unchanged 50 89.3 29 90.6 21 87.5
Eased somewhat 4 7.1 2 6.2 2 8.3
Eased considerably 0 0.0 0 0.0 0 0.0
Total 56 100 32 100 24 100

For this question, 11 respondents answered "My bank does not originate consumer loans other than credit card or auto loans."

 

21. Over the past three months, how has your bank changed the following terms and conditions on new or existing credit card accounts for individuals or households?

a. Credit limits

  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 7.0 3 9.4 0 0.0
Remained basically unchanged 39 90.7 28 87.5 11 100.0
Eased somewhat 1 2.3 1 3.1 0 0.0
Eased considerably 0 0.0 0 0.0 0 0.0
Total 43 100 32 100 11 100

b. Spreads of interest rates charged on outstanding balances 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 2 4.7 2 6.2 0 0.0
Remained basically unchanged 41 95.3 30 93.8 11 100.0
Eased somewhat 0 0.0 0 0.0 0 0.0
Eased considerably 0 0.0 0 0.0 0 0.0
Total 43 100 32 100 11 100

c. Minimum percent of outstanding balances required to be repaid each month

  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 43 100.0 32 100.0 11 100.0
Eased somewhat 0 0.0 0 0.0 0 0.0
Eased considerably 0 0.0 0 0.0 0 0.0
Total 43 100 32 100 11 100

d. Minimum required credit score (increased score=tightened, reduced score=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 2 4.7 2 6.2 0 0.0
Remained basically unchanged 40 93.0 29 90.6 11 100.0
Eased somewhat 1 2.3 1 3.1 0 0.0
Eased considerably 0 0.0 0 0.0 0 0.0
Total 43 100 32 100 11 100

e. The extent to which loans are granted to some customers that do not meet credit scoring thresholds (increased=eased, decreased=tightened)

  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 7.0 2 6.2 1 9.1
Remained basically unchanged 40 93.0 30 93.8 10 90.9
Eased somewhat 0 0.0 0 0.0 0 0.0
Eased considerably 0 0.0 0 0.0 0 0.0
Total 43 100 32 100 11 100

 

22. Over the past three months, how has your bank changed the following terms and conditions on loans to individuals or households to purchase autos?

a. Maximum maturity

  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 3.1 0 0.0
Remained basically unchanged 53 96.4 30 93.8 23 100.0
Eased somewhat 1 1.8 1 3.1 0 0.0
Eased considerably 0 0.0 0 0.0 0 0.0
Total 55 100 32 100 23 100

b. 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 8 14.5 6 18.8 2 8.7
Remained basically unchanged 45 81.8 25 78.1 20 87.0
Eased somewhat 2 3.6 1 3.1 1 4.3
Eased considerably 0 0.0 0 0.0 0 0.0
Total 55 100 32 100 23 100

c. Minimum required down payment (higher=tightened, lower=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 1 1.8 1 3.1 0 0.0
Remained basically unchanged 53 96.4 30 93.8 23 100.0
Eased somewhat 1 1.8 1 3.1 0 0.0
Eased considerably 0 0.0 0 0.0 0 0.0
Total 55 100 32 100 23 100

d. Minimum required credit score (increased score=tightened, reduced score=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 1 1.8 1 3.1 0 0.0
Remained basically unchanged 52 94.5 29 90.6 23 100.0
Eased somewhat 2 3.6 2 6.2 0 0.0
Eased considerably 0 0.0 0 0.0 0 0.0
Total 55 100 32 100 23 100

e. The extent to which loans are granted to some customers that do not meet credit scoring thresholds (increased=eased, decreased=tightened)

  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 5.5 2 6.2 1 4.3
Remained basically unchanged 52 94.5 30 93.8 22 95.7
Eased somewhat 0 0.0 0 0.0 0 0.0
Eased considerably 0 0.0 0 0.0 0 0.0
Total 55 100 32 100 23 100

 

23. Over the past three months, how has your bank changed the following terms and conditions on consumer loans other than credit card and auto loans?

a. Maximum maturity

  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 54 94.7 30 90.9 24 100.0
Eased somewhat 3 5.3 3 9.1 0 0.0
Eased considerably 0 0.0 0 0.0 0 0.0
Total 57 100 33 100 24 100

b. 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 3 5.3 2 6.1 1 4.2
Remained basically unchanged 53 93.0 31 93.9 22 91.7
Eased somewhat 1 1.8 0 0.0 1 4.2
Eased considerably 0 0.0 0 0.0 0 0.0
Total 57 100 33 100 24 100

c. Minimum required down payment (higher=tightened, lower=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 0 0.0 0 0.0 0 0.0
Remained basically unchanged 57 100.0 33 100.0 24 100.0
Eased somewhat 0 0.0 0 0.0 0 0.0
Eased considerably 0 0.0 0 0.0 0 0.0
Total 57 100 33 100 24 100

d. Minimum required credit score (increased score=tightened, reduced score=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 2 3.5 1 3.0 1 4.2
Remained basically unchanged 54 94.7 31 93.9 23 95.8
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 33 100 24 100

e. The extent to which loans are granted to some customers that do not meet credit scoring thresholds (increased=eased, decreased=tightened)

  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 0 0.0 1 4.3
Remained basically unchanged 55 98.2 33 100.0 22 95.7
Eased somewhat 0 0.0 0 0.0 0 0.0
Eased considerably 0 0.0 0 0.0 0 0.0
Total 56 100 33 100 23 100

 

24. Apart from normal seasonal variation, how has demand from individuals or households for credit card loans changed over the past three months?

 

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Substantially stronger 1 2.2 1 3.1 0 0.0
Moderately stronger 2 4.3 2 6.2 0 0.0
About the same 38 82.6 26 81.2 12 85.7
Moderately weaker 5 10.9 3 9.4 2 14.3
Substantially weaker 0 0.0 0 0.0 0 0.0
Total 46 100 32 100 14 100

 

25. Apart from normal seasonal variation, how has demand from individuals or households for auto loans changed over the past three months?

 

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Substantially stronger 1 1.8 1 3.1 0 0.0
Moderately stronger 3 5.5 0 0.0 3 13.0
About the same 46 83.6 26 81.2 20 87.0
Moderately weaker 5 9.1 5 15.6 0 0.0
Substantially weaker 0 0.0 0 0.0 0 0.0
Total 55 100 32 100 23 100

 

26. Apart from normal seasonal variation, how has demand from individuals or households for consumer loans other than credit card and auto loans changed over the past three months?

 

  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 6 10.5 5 15.2 1 4.2
About the same 48 84.2 25 75.8 23 95.8
Moderately weaker 3 5.3 3 9.1 0 0.0
Substantially weaker 0 0.0 0 0.0 0 0.0
Total 57 100 33 100 24 100

 

This first set of special questions, Questions 27 and 28, asks about changes in your bank's likelihood of approving applications for credit card accounts and auto loans by borrowers' credit score.

 

27. In comparison to the beginning of the year, how much more or less likely is your bank to currently approve an application for a credit card to a borrower with the stated FICO score (or equivalent)? In each case assume that all other borrower characteristics are typical for credit card applications with that FICO score (or equivalent).

A. A borrower with a FICO score (or equivalent) of 620

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Much more likely 0 0.0 0 0.0 0 0.0
Somewhat more likely 0 0.0 0 0.0 0 0.0
About as likely 31 70.5 22 66.7 9 81.8
Somewhat less likely 9 20.5 7 21.2 2 18.2
Much less likely 4 9.1 4 12.1 0 0.0
Total 44 100 33 100 11 100

For this question, 22 respondents answered "My bank does not originate credit card loans."

B. A borrower with a FICO score (or equivalent) of 680

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Much more likely 0 0.0 0 0.0 0 0.0
Somewhat more likely 5 11.4 4 12.1 1 9.1
About as likely 36 81.8 26 78.8 10 90.9
Somewhat less likely 3 6.8 3 9.1 0 0.0
Much less likely 0 0.0 0 0.0 0 0.0
Total 44 100 33 100 11 100

C. A borrower with a FICO score (or equivalent) of 720

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Much more likely 2 4.7 1 3.1 1 9.1
Somewhat more likely 6 14.0 4 12.5 2 18.2
About as likely 34 79.1 26 81.2 8 72.7
Somewhat less likely 1 2.3 1 3.1 0 0.0
Much less likely 0 0.0 0 0.0 0 0.0
Total 43 100 32 100 11 100

 

28. In comparison to the beginning of the year, how much more or less likely is your bank to currently approve an application for an auto loan to a borrower with the stated FICO score (or equivalent)? In each case assume that all other borrower characteristics are typical for auto loan applications with that FICO score (or equivalent).

A. A borrower with a FICO score (or equivalent) of 620

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Much more likely 0 0.0 0 0.0 0 0.0
Somewhat more likely 3 5.8 2 6.9 1 4.3
About as likely 38 73.1 20 69.0 18 78.3
Somewhat less likely 7 13.5 3 10.3 4 17.4
Much less likely 4 7.7 4 13.8 0 0.0
Total 52 100 29 100 23 100

For this question, 13 respondents answered "My bank does not originate auto loans."

B. A borrower with a FICO score (or equivalent) of 680

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Much more likely 0 0.0 0 0.0 0 0.0
Somewhat more likely 6 11.8 3 10.7 3 13.0
About as likely 42 82.4 23 82.1 19 82.6
Somewhat less likely 3 5.9 2 7.1 1 4.3
Much less likely 0 0.0 0 0.0 0 0.0
Total 51 100 28 100 23 100

C. A borrower with a FICO score (or equivalent) of 720

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Much more likely 2 3.9 1 3.6 1 4.3
Somewhat more likely 7 13.7 5 17.9 2 8.7
About as likely 41 80.4 21 75.0 20 87.0
Somewhat less likely 1 2.0 1 3.6 0 0.0
Much less likely 0 0.0 0 0.0 0 0.0
Total 51 100 28 100 23 100

 

Please consider a hypothetical scenario in which your bank is operating in an interest rate environment in which there is a moderate inversion of the U.S. Treasury yield curve. In particular, please assume that the 3-month Treasury bill yield remains at its current level and the 10-year Treasury yield falls moderately below that level, and that this situation prevails over the next year. The following questions ask how your bank's credit standards or price terms across the five major loan categories would likely change in response to that hypothetical scenario.

 

29. How has the flattening of the yield curve this year affected your bank's credit standards and price terms for the following loan categories? (Please consider how the flattening of the yield curve has affected your bank's lending policies this year independent of other factors that have influenced those policies.)

A. In response to the yield curve flattening since the start of this year, my bank's credit standards for:

a. C&I loans or credit lines are currently:

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Substantially tighter than they would have otherwise been 0 0.0 0 0.0 0 0.0
Somewhat tighter than they would have otherwise been 4 6.1 2 4.7 2 8.7
Basically unchanged compared to where they would would have otherwise been 61 92.4 40 93.0 21 91.3
Somewhat easier than they would have otherwise been 1 1.5 1 2.3 0 0.0
Substantially easier than they would have otherwise been 0 0.0 0 0.0 0 0.0
Total 66 100 43 100 23 100

For this question, 1 respondent answered "My bank does not originate C&I loans."

b. Loans or credit lines secured by commercial real estate (CRE loans) are currently:

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Substantially tighter than they would have otherwise been 0 0.0 0 0.0 0 0.0
Somewhat tighter than they would have otherwise been 8 12.1 4 9.3 4 17.4
Basically unchanged compared to where they would have otherwise been 57 86.4 38 88.4 19 82.6
Somewhat easier than they would have otherwise been 1 1.5 1 2.3 0 0.0
Substantially easier than they would have otherwise been 0 0.0 0 0.0 0 0.0
Total 66 100 43 100 23 100

c. Loans or credit lines secured by residential real estate (RRE loans) are currently:

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Substantially tighter than they would have otherwise been 0 0.0 0 0.0 0 0.0
Somewhat tighter than they would have otherwise been 1 1.7 1 2.8 0 0.0
Basically unchanged compared to where they would have otherwise been 57 96.6 35 97.2 22 95.7
Somewhat easier than they would have otherwise been 1 1.7 0 0.0 1 4.3
Substantially easier than they would have otherwise been 0 0.0 0 0.0 0 0.0
Total 59 100 36 100 23 100

For this question, 4 respondents answered "My bank does not originate RRE loans."

d. Credit card loans or lines of credit are currently:

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Substantially tighter than they would have otherwise been 0 0.0 0 0.0 0 0.0
Somewhat tighter than they would have otherwise been 2 4.3 1 3.2 1 6.7
Basically unchanged compared to where they would have otherwise been 43 93.5 29 93.5 14 93.3
Somewhat easier than they would have otherwise been 1 2.2 1 3.2 0 0.0
Substantially easier than they would have otherwise been 0 0.0 0 0.0 0 0.0
Total 46 100 31 100 15 100

For this question, 19 respondents answered "My bank does not originate credit card loans."

e. Auto loans or lines of credit are currently:

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Substantially tighter than they would have otherwise been 0 0.0 0 0.0 0 0.0
Somewhat tighter than they would have otherwise been 2 3.9 1 3.3 1 4.8
Basically unchanged compared to where they would have otherwise been 48 94.1 28 93.3 20 95.2
Somewhat easier than they would have otherwise been 1 2.0 1 3.3 0 0.0
Substantially easier than they would have otherwise been 0 0.0 0 0.0 0 0.0
Total 51 100 30 100 21 100

For this question, 14 respondents answered "My bank does not originate auto loans."

B. In response to the yield curve flattening since the start of this year, my bank's price terms (e.g., loan spreads over my bank's cost of funds or premia charged for risker loans, for which a higher spread or premium represents a tightening in those terms) for:

a. C&I loans or credit lines are currently:

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Substantially tighter than they would have otherwise been 0 0.0 0 0.0 0 0.0
Somewhat tighter than they would have otherwise been 8 12.3 4 9.5 4 17.4
Basically unchanged compared to where they would have otherwise been 50 76.9 36 85.7 14 60.9
Somewhat easier than they would have otherwise been 6 9.2 2 4.8 4 17.4
Substantially easier than they would have otherwise been 1 1.5 0 0.0 1 4.3
Total 65 100 42 100 23 100

b. Loans or credit lines secured by commercial real estate (CRE loans) are currently:

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Substantially tighter than they would have otherwise been 0 0.0 0 0.0 0 0.0
Somewhat tighter than they would have otherwise been 14 21.2 9 20.9 5 21.7
Basically unchanged compared to where they would have otherwise been 47 71.2 32 74.4 15 65.2
Somewhat easier than they would have otherwise been 5 7.6 2 4.7 3 13.0
Substantially easier than they would have otherwise been 0 0.0 0 0.0 0 0.0
Total 66 100 43 100 23 100

c. Loans or credit lines secured by residential real estate (RRE loans) are currently:

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Substantially tighter than they would have otherwise been 0 0.0 0 0.0 0 0.0
Somewhat tighter than they would have otherwise been 9 15.3 6 16.7 3 13.0
Basically unchanged compared to where they would have otherwise been 50 84.7 30 83.3 20 87.0
Somewhat easier than they would have otherwise been 0 0.0 0 0.0 0 0.0
Substantially easier than they would have otherwise been 0 0.0 0 0.0 0 0.0
Total 59 100 36 100 23 100

d. Credit card loans or lines of credit are currently:

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Substantially tighter than they would have otherwise been 0 0.0 0 0.0 0 0.0
Somewhat tighter than they would have otherwise been 2 4.4 1 3.2 1 7.1
Basically unchanged compared to where they would have otherwise been 43 95.6 30 96.8 13 92.9
Somewhat easier than they would have otherwise been 0 0.0 0 0.0 0 0.0
Substantially easier than they would have otherwise been 0 0.0 0 0.0 0 0.0
Total 45 100 31 100 14 100

e. Auto loans or lines of credit are currently:

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Substantially tighter than they would have otherwise been 0 0.0 0 0.0 0 0.0
Somewhat tighter than they would have otherwise been 2 3.9 1 3.3 1 4.8
Basically unchanged compared to where they would have otherwise been 46 90.2 27 90.0 19 90.5
Somewhat easier than they would have otherwise been 3 5.9 2 6.7 1 4.8
Substantially easier than they would have otherwise been 0 0.0 0 0.0 0 0.0
Total 51 100 30 100 21 100

 

30. To the extent that your bank's credit standards or price terms have changed in response to the flattening of the yield curve since the start of this year, what are the most important reasons for the changes? (Please respond to A if you indicated a tightening in standards or price terms in responding to any of the preceding questions in Question 29, B if you indicated an easing in standards or price terms in responding to any of the preceding questions in Question 29, or both, as appropriate).

A. Possible reasons why my bank's credit standards or price terms are currently tighter than they would have been had the yield curve not flattened

1. Relative to my bank's cost of funds, the lending categories for which my bank tightened its credit policies became less profitable

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 3 21.4 1 12.5 2 33.3
Somewhat important 7 50.0 5 62.5 2 33.3
Very important 4 28.6 2 25.0 2 33.3
Total 14 100 8 100 6 100

2. As a result of the yield curve flattening, my bank chose to cut back on its fixed rate lending

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 4 28.6 2 28.6 2 28.6
Somewhat important 8 57.1 4 57.1 4 57.1
Very important 2 14.3 1 14.3 1 14.3
Total 14 100 7 100 7 100

3. As a result of the yield curve flattening, my bank chose to cut back on its floating rate lending

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 15 100.0 8 100.0 7 100.0
Somewhat important 0 0.0 0 0.0 0 0.0
Very important 0 0.0 0 0.0 0 0.0
Total 15 100 8 100 7 100

4. As a result of the flattening of the yield curve, my bank's risk tolerance decreased

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 9 64.3 4 57.1 5 71.4
Somewhat important 4 28.6 2 28.6 2 28.6
Very important 1 7.1 1 14.3 0 0.0
Total 14 100 7 100 7 100

5. My bank interpreted the flattening of the yield curve as signaling a less favorable or more uncertain economic outlook

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 4 25.0 2 22.2 2 28.6
Somewhat important 11 68.8 7 77.8 4 57.1
Very important 1 6.2 0 0.0 1 14.3
Total 16 100 9 100 7 100

6. My bank interpreted the flattening of the yield curve as likely being followed by a deterioration in the quality of my bank's existing loan portfolio

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 7 46.7 3 37.5 4 57.1
Somewhat important 8 53.3 5 62.5 3 42.9
Very important 0 0.0 0 0.0 0 0.0
Total 15 100 8 100 7 100

7. As a result of the flattening of the yield curve, my bank experienced less aggressive competition from other banks or nonbank lenders

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 14 100.0 7 100.0 7 100.0
Somewhat important 0 0.0 0 0.0 0 0.0
Very important 0 0.0 0 0.0 0 0.0
Total 14 100 7 100 7 100

8. As a result of the flattening of the yield curve, the resale value of loans in the secondary market became lower or more uncertain

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 13 81.2 6 66.7 7 100.0
Somewhat important 2 12.5 2 22.2 0 0.0
Very important 1 6.2 1 11.1 0 0.0
Total 16 100 9 100 7 100

B. Possible reasons why my bank's credit standards or price terms are currently easier than they would have been had the yield curve not flattened

1. Relative to my bank's cost of funds, the lending categories for which my bank eased its credit policies became more profitable

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 7 87.5 3 75.0 4 100.0
Somewhat important 1 12.5 1 25.0 0 0.0
Very important 0 0.0 0 0.0 0 0.0
Total 8 100 4 100 4 100

2. As a result of the yield curve flattening, my bank chose to cut back on its fixed rate lending

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 8 100.0 4 100.0 4 100.0
Somewhat important 0 0.0 0 0.0 0 0.0
Very important 0 0.0 0 0.0 0 0.0
Total 8 100 4 100 4 100

3. As a result of the yield curve flattening, my bank chose to cut back on its floating rate lending

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 5 62.5 3 75.0 2 50.0
Somewhat important 2 25.0 1 25.0 1 25.0
Very important 1 12.5 0 0.0 1 25.0
Total 8 100 4 100 4 100

4. As a result of the flattening of the yield curve, my bank's risk tolerance decreased

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 8 100.0 4 100.0 4 100.0
Somewhat important 0 0.0 0 0.0 0 0.0
Very important 0 0.0 0 0.0 0 0.0
Total 8 100 4 100 4 100

5. My bank interpreted the flattening of the yield curve as signaling a less favorable or more uncertain economic outlook

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 7 87.5 3 75.0 4 100.0
Somewhat important 1 12.5 1 25.0 0 0.0
Very important 0 0.0 0 0.0 0 0.0
Total 8 100 4 100 4 100

6. My bank interpreted the flattening of the yield curve as likely being followed by a deterioration in the quality of my bank's existing loan portfolio

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 7 87.5 3 75.0 4 100.0
Somewhat important 1 12.5 1 25.0 0 0.0
Very important 0 0.0 0 0.0 0 0.0
Total 8 100 4 100 4 100

7. As a result of the flattening of the yield curve, my bank experienced less aggressive competition from other banks or nonbank lenders

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 1 11.1 1 25.0 0 0.0
Somewhat important 3 33.3 1 25.0 2 40.0
Very important 5 55.6 2 50.0 3 60.0
Total 9 100 4 100 5 100

8. As a result of the flattening of the yield curve, the resale value of loans in the secondary market became lower or more uncertain

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 8 100.0 4 100.0 4 100.0
Somewhat important 0 0.0 0 0.0 0 0.0
Very important 0 0.0 0 0.0 0 0.0
Total 8 100 4 100 4 100

 

31. How would that hypothetical moderate inversion of the yield curve over the next year likely affect your current credit standards and price terms for the following loan categories? (Please consider the hypothetical effects of the inverted yield curve on your bank's credit policies independent of other factors that may also be expected to influence those policies.)

A. Were the yield curve to experience a moderate inversion over the next year, my bank's credit standards for:

a. C&I loans or credit lines would likely:

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Tighten substantially 2 3.1 1 2.4 1 4.3
Tighten somewhat 24 36.9 16 38.1 8 34.8
Remain basically unchanged 39 60.0 25 59.5 14 60.9
Ease somewhat 0 0.0 0 0.0 0 0.0
Ease substantially 0 0.0 0 0.0 0 0.0
Total 65 100 42 100 23 100

b. Loans or credit lines secured by commercial real estate (CRE loans) would likely:

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Tighten substantially 2 3.1 1 2.4 1 4.3
Tighten somewhat 29 44.6 21 50.0 8 34.8
Remain basically unchanged 34 52.3 20 47.6 14 60.9
Ease somewhat 0 0.0 0 0.0 0 0.0
Ease substantially 0 0.0 0 0.0 0 0.0
Total 65 100 42 100 23 100

c. Loans or credit lines secured by residential real estate (RRE loans) would likely:

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Tighten substantially 1 1.7 1 2.8 0 0.0
Tighten somewhat 19 32.8 14 38.9 5 22.7
Remain basically unchanged 37 63.8 20 55.6 17 77.3
Ease somewhat 1 1.7 1 2.8 0 0.0
Ease substantially 0 0.0 0 0.0 0 0.0
Total 58 100 36 100 22 100

d. Credit card loans or lines of credit would likely:

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Tighten substantially 0 0.0 0 0.0 0 0.0
Tighten somewhat 14 31.1 11 35.5 3 21.4
Remain basically unchanged 31 68.9 20 64.5 11 78.6
Ease somewhat 0 0.0 0 0.0 0 0.0
Ease substantially 0 0.0 0 0.0 0 0.0
Total 45 100 31 100 14 100

e. Auto loans or lines of credit would likely:

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Tighten substantially 0 0.0 0 0.0 0 0.0
Tighten somewhat 13 26.0 10 34.5 3 14.3
Remain basically unchanged 37 74.0 19 65.5 18 85.7
Ease somewhat 0 0.0 0 0.0 0 0.0
Ease substantially 0 0.0 0 0.0 0 0.0
Total 50 100 29 100 21 100

B. Were the yield curve to experience a moderate inversion over the next year, my bank's price terms for:

a. C&I loans or credit lines would likely:

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Tighten substantially 1 1.6 1 2.5 0 0.0
Tighten somewhat 18 28.6 11 27.5 7 30.4
Remain basically unchanged 42 66.7 28 70.0 14 60.9
Ease somewhat 2 3.2 0 0.0 2 8.7
Ease substantially 0 0.0 0 0.0 0 0.0
Total 63 100 40 100 23 100

b. Loans or credit lines secured by commercial real estate (CRE loans) would likely:

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Tighten substantially 2 3.1 1 2.4 1 4.3
Tighten somewhat 21 32.8 14 34.1 7 30.4
Remain basically unchanged 39 60.9 25 61.0 14 60.9
Ease somewhat 2 3.1 1 2.4 1 4.3
Ease substantially 0 0.0 0 0.0 0 0.0
Total 64 100 41 100 23 100

c. Loans or credit lines secured by residential real estate (RRE loans) would likely:

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Tighten substantially 2 3.4 1 2.9 1 4.3
Tighten somewhat 18 31.0 12 34.3 6 26.1
Remain basically unchanged 37 63.8 21 60.0 16 69.6
Ease somewhat 1 1.7 1 2.9 0 0.0
Ease substantially 0 0.0 0 0.0 0 0.0
Total 58 100 35 100 23 100

d. Credit card loans or lines of credit would likely:

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Tighten substantially 0 0.0 0 0.0 0 0.0
Tighten somewhat 10 22.2 7 22.6 3 21.4
Remain basically unchanged 35 77.8 24 77.4 11 78.6
Ease somewhat 0 0.0 0 0.0 0 0.0
Ease substantially 0 0.0 0 0.0 0 0.0
Total 45 100 31 100 14 100

e. Auto loans or lines of credit would likely:

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Tighten substantially 0 0.0 0 0.0 0 0.0
Tighten somewhat 14 28.0 10 34.5 4 19.0
Remain basically unchanged 36 72.0 19 65.5 17 81.0
Ease somewhat 0 0.0 0 0.0 0 0.0
Ease substantially 0 0.0 0 0.0 0 0.0
Total 50 100 29 100 21 100

 

32. To the extent that your bank would likely change its credit standards or price terms in response to a moderate inversion of the yield curve over the next year, what would likely be the most important reasons for the changes? (Please respond to A if you indicated a tightening in standards or terms in responding to any of the preceding questions in Question 31, B if you indicated an easing in standards or terms in responding to any of the preceding questions in Question 31, or both, as appropriate).

A. Possible reasons my bank would expect to tighten its credit standards or price terms in response to a moderate inversion of the yield curve over the next year

1. Relative to my bank's cost of funds, the lending categories for which my bank would tighten its credit policies would become less profitable

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 11 34.4 6 28.6 5 45.5
Somewhat important 12 37.5 9 42.9 3 27.3
Very important 9 28.1 6 28.6 3 27.3
Total 32 100 21 100 11 100

2. As a result of a moderate inversion of the yield curve over the next year, my bank would choose to cut back on its fixed rate lending

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 17 56.7 12 63.2 5 45.5
Somewhat important 9 30.0 6 31.6 3 27.3
Very important 4 13.3 1 5.3 3 27.3
Total 30 100 19 100 11 100

3. As a result of a moderate inversion of the yield curve over the next year, my bank would choose to cut back on its floating rate lending

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 27 90.0 19 100.0 8 72.7
Somewhat important 2 6.7 0 0.0 2 18.2
Very important 1 3.3 0 0.0 1 9.1
Total 30 100 19 100 11 100

4. As a result of a moderate inversion of the yield curve over the next year, my bank's risk tolerance would decrease

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 5 16.7 4 21.1 1 9.1
Somewhat important 20 66.7 10 52.6 10 90.9
Very important 5 16.7 5 26.3 0 0.0
Total 30 100 19 100 11 100

5. My bank would interpret a moderate inversion of the yield curve over the next year as signaling a less favorable or more uncertain economic outlook

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 1 3.1 1 4.8 0 0.0
Somewhat important 18 56.2 11 52.4 7 63.6
Very important 13 40.6 9 42.9 4 36.4
Total 32 100 21 100 11 100

6. My bank would interpret a moderate inversion of the yield curve over the next year as likely being followed by a deterioration in the quality of my bank's existing loan portfolio

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 3 9.4 2 9.5 1 9.1
Somewhat important 22 68.8 13 61.9 9 81.8
Very important 7 21.9 6 28.6 1 9.1
Total 32 100 21 100 11 100

7. As a result of a moderate inversion of the yield curve over the next year, my bank would experience less aggressive competition from other banks or nonbank lenders

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 21 67.7 11 55.0 10 90.9
Somewhat important 9 29.0 8 40.0 1 9.1
Very important 1 3.2 1 5.0 0 0.0
Total 31 100 20 100 11 100

8. As a result of a moderate inversion of the yield curve over the next year, the resale value of loans in the secondary market would become lower or more uncertain

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 20 64.5 13 65.0 7 63.6
Somewhat important 10 32.3 6 30.0 4 36.4
Very important 1 3.2 1 5.0 0 0.0
Total 31 100 20 100 11 100

B. Possible reasons my bank would ease its credit standards or price terms in response to a moderate inversion of the yield curve over the next year

1. Relative to my bank's cost of funds, the lending categories for which my bank would ease its credit policies would become more profitable

Responses are not reported when the number of respondents is 3 or fewer.

2. As a result of a moderate inversion of the yield cover over the next year, my bank would choose to increase its fixed rate lending

Responses are not reported when the number of respondents is 3 or fewer.

3. As a result of a moderate inversion of the yield cover over the next year, my bank would choose to increase its floating rate lending

Responses are not reported when the number of respondents is 3 or fewer.

4. As a result of a moderate inversion of the yield cover over the next year, my bank's risk tolerance would increase

Responses are not reported when the number of respondents is 3 or fewer.

5. My bank would interpret a moderate inversion of the yield curve over the next year as signaling a more favorable or less uncertain economic outlook

Responses are not reported when the number of respondents is 3 or fewer.

6. My bank would interpret a moderate inversion of the yield over the next year as likely being followed by an improvement in the quality of my bank's existing loan portfolio

Responses are not reported when the number of respondents is 3 or fewer.

7. As a result of a moderate inversion of the yield curve over the next year, my bank would experience more aggressive competition from other banks or nonbank lenders

Responses are not reported when the number of respondents is 3 or fewer.

8. As a result of a moderate inversion of the yield curve over the next year, the resale value of loans in the secondary market would become higher or less uncertain

  All Respondents Large Banks Other Banks
Banks Percent Banks Percent Banks Percent
Not important 3 75.0 1 50.0 2 100.0
Somewhat important 1 25.0 1 50.0 0 0.0
Very important 0 0.0 0 0.0 0 0.0
Total 4 100 2 100 2 100

 

1. The sample is selected from among the largest banks in each Federal Reserve District. In the table, large banks are defined as those with total domestic assets of $20 billion or more as of June 30, 2018. The combined assets of the 46 large banks totaled $10.2 trillion, compared to $10.5 trillion for the entire panel of 70 banks, and $14.8 trillion for all domestically chartered, federally insured commercial banks. Return to text

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Last Update: November 13, 2018