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  4. The October 2025 Senior Loan Officer Opinion Survey on Bank Lending Practices

Senior Loan Officer Opinion Survey on Bank Lending Practices

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Senior Loan Officer Opinion Survey on Bank Lending Practices at Selected Branches and Agencies of Foreign Banks in the United States 1

(Status of Policy as of October 2025)

Questions 1-6 ask about commercial and industrial (C&I) loans at your bank. Questions 1-3 deal with changes in your bank's lending policies over the past three months. Questions 4-5 deal with changes in demand for C&I loans over the past three months. Question 6 asks about changes in prospective demand for C&I loans at your bank, as indicated by the volume of recent inquiries about the availability of new credit lines or increases in existing lines. If your bank's lending policies have not changed over the past three months, please report them as unchanged even if the policies are either restrictive or accommodative relative to longer-term norms. If your bank's policies have tightened or eased over the past three months, please so report them regardless of how they stand relative to longer-term norms. Also, please report changes in enforcement of existing policies as changes in policies.

1. Over the past three months, how have your bank's credit standards for approving applications for C&I loans or credit lines - other than those to be used to finance mergers and acquisitions - changed?

 

  All Respondents
Banks Percent
Tightened considerably 0 0.0
Tightened somewhat 1 6.2
Remained basically unchanged 15 93.8
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 16 100

 

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

 

a. Maximum size of credit lines

  All Respondents
Banks Percent
Tightened considerably 0 0.0
Tightened somewhat 0 0.0
Remained basically unchanged 15 93.8
Eased somewhat 1 6.2
Eased considerably 0 0.0
Total 16 100

b. Maximum maturity of loans or credit lines

  All Respondents
Banks Percent
Tightened considerably 0 0.0
Tightened somewhat 1 6.2
Remained basically unchanged 15 93.8
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 16 100

c. Costs of credit lines

  All Respondents
Banks Percent
Tightened considerably 0 0.0
Tightened somewhat 2 12.5
Remained basically unchanged 14 87.5
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 16 100

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

  All Respondents
Banks Percent
Tightened considerably 0 0.0
Tightened somewhat 1 6.2
Remained basically unchanged 13 81.2
Eased somewhat 1 6.2
Eased considerably 1 6.2
Total 16 100

e. Premiums charged on riskier loans

  All Respondents
Banks Percent
Tightened considerably 0 0.0
Tightened somewhat 1 6.2
Remained basically unchanged 14 87.5
Eased somewhat 0 0.0
Eased considerably 1 6.2
Total 16 100

f. Loan covenants

  All Respondents
Banks Percent
Tightened considerably 0 0.0
Tightened somewhat 0 0.0
Remained basically unchanged 14 87.5
Eased somewhat 2 12.5
Eased considerably 0 0.0
Total 16 100

g. Collateralization requirements

  All Respondents
Banks Percent
Tightened considerably 0 0.0
Tightened somewhat 0 0.0
Remained basically unchanged 16 100.0
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 16 100

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

  All Respondents
Banks Percent
Tightened considerably 0 0.0
Tightened somewhat 0 0.0
Remained basically unchanged 15 100.0
Eased somewhat 0 0.0
Eased considerably 0 0.0
Total 15 100

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 the following possible reasons been 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

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

b. Less favorable or more uncertain economic outlook

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

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

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

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

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

e. Reduced tolerance for risk

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

f. Decreased liquidity in the secondary market for these loans

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

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

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

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

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

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

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

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

b. More favorable or less uncertain economic outlook

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

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

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

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

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

e. Increased tolerance for risk

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

f. Increased liquidity in the secondary market for these loans

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

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

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

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

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

4. Apart from normal seasonal variation, how has demand for C&I loans changed over the past three months? (Please consider only funds actually disbursed as opposed to requests for new or increased lines of credit.)

 

  All Respondents
Banks Percent
Substantially stronger 0 0.0
Moderately stronger 6 37.5
About the same 10 62.5
Moderately weaker 0 0.0
Substantially weaker 0 0.0
Total 16 100

5. If demand for C&I loans has strengthened or weakened over the past three months (as described in question 4), how important have the following possible reasons been for the change? (Please respond to either A, B, or both as appropriate.)

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

a. Customer inventory financing needs increased

  All Respondents
Banks Percent
Not important 3 50.0
Somewhat important 2 33.3
Very important 1 16.7
Total 6 100

b. Customer accounts receivable financing needs increased

  All Respondents
Banks Percent
Not important 4 66.7
Somewhat important 2 33.3
Very important 0 0.0
Total 6 100

c. Customer investment in plant or equipment increased

  All Respondents
Banks Percent
Not important 2 33.3
Somewhat important 2 33.3
Very important 2 33.3
Total 6 100

d. Customer internally generated funds decreased

  All Respondents
Banks Percent
Not important 5 83.3
Somewhat important 1 16.7
Very important 0 0.0
Total 6 100

e. Customer merger or acquisition financing needs increased

  All Respondents
Banks Percent
Not important 1 16.7
Somewhat important 2 33.3
Very important 3 50.0
Total 6 100

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

  All Respondents
Banks Percent
Not important 5 83.3
Somewhat important 1 16.7
Very important 0 0.0
Total 6 100

g. Customer precautionary demand for cash and liquidity increased

  All Respondents
Banks Percent
Not important 5 83.3
Somewhat important 1 16.7
Very important 0 0.0
Total 6 100

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

a. Customer inventory financing needs decreased

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

b. Customer accounts receivable financing needs decreased

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

c. Customer investment in plant or equipment decreased

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

d. Customer internally generated funds increased

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

e. Customer merger or acquisition financing needs decreased

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

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

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

g. Customer precautionary demand for cash and liquidity decreased

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

6. At your bank, apart from normal seasonal variation, how has the number of inquiries from potential business borrowers regarding the availability and terms of new credit lines or increases in existing lines changed over the past three months? (Please consider only inquiries for additional or increased C&I lines as opposed to the refinancing of existing loans.)

 

  All Respondents
Banks Percent
The number of inquiries has increased substantially 1 6.7
The number of inquiries has increased moderately 2 13.3
The number of inquiries has stayed about the same 12 80.0
The number of inquiries has decreased moderately 0 0.0
The number of inquiries has decreased substantially 0 0.0
Total 15 100

Questions 7-8 ask about commercial real estate (CRE) loans at your bank, including construction and land development loans and loans secured by nonfarm nonresidential properties. Question 7 deals with changes in your bank's standards over the past three months. Question 8 deals with changes in demand. If your bank's lending standards or terms have not changed over the relevant period, please report them as unchanged even if they are either restrictive or accommodative relative to longer-term norms. If your bank's standards or terms have tightened or eased over the relevant period, please so report them regardless of how they stand relative to longer-term norms. Also, please report changes in enforcement of existing standards as changes in standards.

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

 

  All Respondents
Banks Percent
Tightened considerably 0 0.0
Tightened somewhat 0 0.0
Remained basically unchanged 12 92.3
Eased somewhat 1 7.7
Eased considerably 0 0.0
Total 13 100

For this question, 3 respondents answered "My bank does not originate CRE loans."

8. Apart from normal seasonal variation, how has demand for CRE loans or credit lines 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
Banks Percent
Substantially stronger 0 0.0
Moderately stronger 5 38.5
About the same 8 61.5
Moderately weaker 0 0.0
Substantially weaker 0 0.0
Total 13 100

Question 9 asks about changes in your bank's likelihood of approving C&I loan applications by borrower size and trade exposure. Answer Question 9 based on your best judgment of exposure to trade for each firm-size group. Question 10 asks about the factors contributing to changes in demand for C&I loans from your bank.

9. In comparison to the beginning of the year, how much more or less likely is your bank to currently approve a C&I loan application to a borrower in each firm size and trade exposure category? In each case, assume that all other borrower characteristics are typical for C&I loan applications from borrowers in that category.

 

A. C&I loans or credit lines to large and middle-market firms with high trade exposure

  All Respondents
Banks Percent
Much more likely 0 0.0
Somewhat more likely 0 0.0
About as likely 11 73.3
Somewhat less likely 4 26.7
Much less likely 0 0.0
Total 15 100

B. C&I loans or credit lines to large and middle-market firms with low trade exposure

  All Respondents
Banks Percent
Much more likely 0 0.0
Somewhat more likely 2 13.3
About as likely 13 86.7
Somewhat less likely 0 0.0
Much less likely 0 0.0
Total 15 100

C. C&I loans or credit lines to small firms with high trade exposure

  All Respondents
Banks Percent
Much more likely 0 0.0
Somewhat more likely 0 0.0
About as likely 4 44.4
Somewhat less likely 4 44.4
Much less likely 1 11.1
Total 9 100

For this question, 5 respondents answered "My bank does not originate C&I loans or credit lines to these borrowers"

D. C&I loans or credit lines to small firms with low trade exposure

  All Respondents
Banks Percent
Much more likely 0 0.0
Somewhat more likely 1 11.1
About as likely 7 77.8
Somewhat less likely 1 11.1
Much less likely 0 0.0
Total 9 100

For this question, 5 respondents answered "My bank does not originate C&I loans or credit lines to these borrowers"

10. What have been the main factors contributing to changes in demand for C&I loans from your bank since the beginning of the year? For each possible factor listed below, please indicate in which direction and by how much each factor affected demand for C&I loans.

 

A. Changes in customers' investment needs due to the outlook for economic activity

  All Respondents
Banks Percent
Weakened demand significantly 0 0.0
Weakened demand somewhat 3 23.1
Not important 8 61.5
Strengthened demand somewhat 2 15.4
Strengthened demand significantly 0 0.0
Total 13 100

B. Changes in customers' investment needs due to prevailing interest rates and terms

  All Respondents
Banks Percent
Weakened demand significantly 0 0.0
Weakened demand somewhat 1 7.7
Not important 9 69.2
Strengthened demand somewhat 3 23.1
Strengthened demand significantly 0 0.0
Total 13 100

C. Changes in customers' investment needs to acquire inventory or make advance purchases due to trade developments

  All Respondents
Banks Percent
Weakened demand significantly 0 0.0
Weakened demand somewhat 1 7.7
Not important 8 61.5
Strengthened demand somewhat 3 23.1
Strengthened demand significantly 1 7.7
Total 13 100

D. Changes in customers' investment needs due to trade-related shifts in product availability or pricing

  All Respondents
Banks Percent
Weakened demand significantly 0 0.0
Weakened demand somewhat 1 7.7
Not important 9 69.2
Strengthened demand somewhat 3 23.1
Strengthened demand significantly 0 0.0
Total 13 100

E. Changes in customers' mergers and acquisitions investment needs

  All Respondents
Banks Percent
Weakened demand significantly 0 0.0
Weakened demand somewhat 1 7.7
Not important 6 46.2
Strengthened demand somewhat 5 38.5
Strengthened demand significantly 1 7.7
Total 13 100

F. Changes in customers' investment needs for reasons not listed above

  All Respondents
Banks Percent
Weakened demand significantly 0 0.0
Weakened demand somewhat 0 0.0
Not important 11 84.6
Strengthened demand somewhat 2 15.4
Strengthened demand significantly 0 0.0
Total 13 100

G. Changes in the relative attractiveness of other bank credit sources

  All Respondents
Banks Percent
Weakened demand significantly 0 0.0
Weakened demand somewhat 0 0.0
Not important 11 84.6
Strengthened demand somewhat 2 15.4
Strengthened demand significantly 0 0.0
Total 13 100

H. Changes in the relative attractiveness of nonbank credit sources

  All Respondents
Banks Percent
Weakened demand significantly 0 0.0
Weakened demand somewhat 1 7.7
Not important 11 84.6
Strengthened demand somewhat 1 7.7
Strengthened demand significantly 0 0.0
Total 13 100

1. As of June 30, 2025, the 16 respondents had combined assets of $1.5 trillion, compared to $3.3 trillion for all foreign-related banking institutions in the United States. The sample is selected from among the largest foreign-related banking institutions in those Federal Reserve Districts where such institutions are common. Return to text

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Last Update: November 03, 2025