Senior Loan Officer Opinion Survey on Bank Lending Practices
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The April 2026 Senior Loan Officer Opinion Survey on Bank Lending Practices
The April 2026 Senior Loan Officer Opinion Survey on Bank Lending Practices (SLOOS) addressed changes in the standards and terms on, and demand for, bank loans to businesses and households over the past three months, which generally correspond to the first quarter of 2026.1
Regarding loans to businesses over the first quarter, survey respondents reported, on balance, tighter lending standards and basically unchanged demand for commercial and industrial (C&I) loans to firms of all sizes.2 Furthermore, banks reported basically unchanged lending standards and weaker or basically unchanged demand for commercial real estate (CRE) loans.
Banks also responded to two sets of special questions. The first set asked banks about changes in lending policies and demand for CRE loans over the past year, and the second set queried changes in lending standards and demand for nondepository financial institution (NDFI) loans over the past year. Banks reported unchanged or easier terms for almost all loan policies across CRE loan categories. Banks reported, on net, tighter standards and stronger demand across all NDFI loan categories.
For loans to households, banks reported basically unchanged lending standards and unchanged or weaker demand for most categories of residential real estate (RRE) loans on balance. Banks similarly reported basically unchanged lending standards but stronger demand for home equity lines of credit (HELOCs). In addition, banks reported tighter standards for other consumer loans, while standards remained basically unchanged for credit card and auto loans. Meanwhile, demand reportedly weakened for credit card, auto, and other consumer loans.
Lending to Businesses
(Table 1, questions 1–12; table 2, questions 1–8)
Questions on commercial and industrial lending. Over the first quarter, modest net shares of banks reported having tightened standards on C&I loans to firms of all sizes.3 Meanwhile, banks reported mixed changes to C&I loan terms over the same period.4 Moderate to modest net shares of banks reported higher premiums on riskier loans, tighter loan covenants, and tighter collateralization requirements for firms of all sizes. By contrast, moderate and modest net shares of banks reported having eased loan spreads over their banks’ cost of funds for large firms and small firms, respectively. Modest net shares of banks eased costs of credit lines for large firms, while costs of credit lines remained basically unchanged for small firms. Modest net shares of banks reported more use of interest rate floors for loans to large firms, while use of interest rate floors remained basically unchanged for small firms. The remaining terms on C&I loans were basically unchanged, on net, to firms of all sizes. Foreign banks also reported leaving standards basically unchanged and tightening or leaving most terms unchanged on C&I loans.
Among banks that reported having tightened standards and terms for C&I loans, major net shares cited a less favorable or more uncertain economic outlook, the worsening of industry-specific problems, and a reduced tolerance for risk as important reasons for doing so. Among banks that reported having eased standards and terms for C&I loans, major net shares cited more aggressive competition from other banks or nonbank lenders as an important reason for doing so.
Regarding demand for C&I loans, banks reported basically unchanged demand, on net, from firms of all sizes. These responses were mixed across bank size categories. Moderate net shares of large banks reported weakening demand from small firms, while demand remained basically unchanged from large and middle-market firms. Modest net shares of other banks reported stronger demand from large and middle-market firms, while demand remained basically unchanged from small firms. In addition, a modest net share of banks reported an increase in the number of inquiries from potential borrowers regarding the availability and terms of new credit lines or increases in existing lines. Furthermore, a moderate net share of foreign banks reported stronger demand for C&I loans.
Questions on commercial real estate lending. Over the first quarter, banks reported having left standards basically unchanged, on net, for construction and land development (CLD) loans, loans secured by nonfarm nonresidential (NFNR) properties, and loans secured by multifamily (MF) residential properties. These responses were mixed across bank size categories. Among large banks, moderate net shares reported having eased standards for all three CRE loan categories. By contrast, moderate net shares of other banks reported having tightened standards for CLD loans, and modest net shares of other banks reported tightening standards for MF loans while reportedly leaving standards for NFNR loans basically unchanged on net. Lastly, modest net shares of foreign banks reported having tightened standards for CRE loans.
Regarding demand for CRE loans, a moderate net share of banks reported weaker demand for CLD loans, while demand was basically unchanged for NFNR and MF loans. These responses were mixed across bank size categories. Significant net shares of large banks reported stronger demand for NFNR and MF loans, while moderate net shares of large banks reported weaker demand for CLD loans. Moderate and modest net shares of other banks reported weaker demand for CLD and MF loans, respectively, while demand for NFNR loans remained basically unchanged on balance. In addition, a modest net share of foreign banks reported stronger demand for CRE loans.
Special questions on changes in banks’ lending policies on commercial real estate loans over the past year. A set of special questions asked banks about changes in their lending policies for each major CRE loan category over the past year. These questions have been asked in each April survey for the past 10 years.
Banks reported having eased or left basically unchanged almost all the terms surveyed for each CRE loan category. The most widely reported changes in terms, cited by significant to moderate net shares of banks across all CRE loan categories, were higher maximum loan sizes, narrower spreads of loan rates over the bank’s cost of funds, and longer interest-only payment periods. In addition, modest net shares of banks reported having lowered debt service coverage ratios for CLD and MF loans. Banks reported having left all other terms surveyed basically unchanged for all CRE loan categories.5 Lastly, foreign banks reported mixed changes to terms across CRE loan categories.
The most cited reason for easing lending policies on CRE loans over the past year, cited by major net shares of banks, was more aggressive competition from other banks or nonbank lenders.
The survey also asked banks about the reasons for weaker or stronger demand for CRE loans over the past year. Among banks reporting stronger demand, the most frequently cited reasons, reported by major net shares of banks, were an increase in customer acquisition or development of properties, an increase in customer refinancing of maturing loans, a decrease in the general level of interest rates, and a more favorable or less uncertain customer outlook for rental demand. Among banks that reported weaker demand, the most frequently cited reasons, reported by major net shares of banks, were a less favorable or more uncertain customer outlook for rental demand, a decrease in customer acquisition or development of properties, customer borrowing shifting from their bank to nonbank sources, an increase in the general level of interest rates, and a decrease in customer refinancing of maturing loans.
Lending to Households
(Table 1, questions 13–26)
Questions on residential real estate lending.6 Banks reported having left standards basically unchanged over the first quarter for most RRE loan categories on balance.7 Similarly, banks reported that standards for HELOCs remained basically unchanged.8
Meanwhile, banks reported basically unchanged or weaker demand, on balance, for all RRE loan categories over the first quarter. Moderate net shares of banks reported weaker demand for subprime residential mortgages, while modest net shares reported weaker demand for QM non-jumbo non-GSE and non-QM non-jumbo mortgages. By contrast, modest net shares of banks reported strengthening demand for HELOCs.9
Questions on consumer lending. Over the first quarter, banks left standards basically unchanged for auto and credit card loans, on balance, while a modest net share of banks reported having tightened standards on other consumer loans. Banks reported having left all queried terms on credit card loans unchanged.10 Queried terms for auto loans and other consumer loans were mixed.11
Regarding demand for consumer loans, modest net shares of banks reported weaker demand for credit card and auto loans over the first quarter, while moderate net shares of banks reported weaker demand for other consumer loans.
Special Questions on Lending to Nondepository Financial Institutions
(Table 1, questions 32–36; table 2, questions 14–18)
A second set of special questions asked banks about changes in lending standards and demand over the past year for NDFI loans.12 These questions are new in the April 2026 SLOOS.
Banks reported, on net, tighter standards for all categories of NDFI loans over the past year. Specifically, significant net shares of banks reported tighter standards for NDFI loans to business credit intermediaries, consumer credit intermediaries, and other NDFI loans, and moderate net shares reported tighter standards for mortgage credit intermediaries and private equity funds.
Similarly, banks reported having tightened all terms surveyed on NDFI loans. The most widely reported changes in terms, cited by significant to moderate net shares of banks, were higher premiums charged on riskier loans, stricter loan covenants, shorter maximum maturities of loans or credit lines, stricter collateralization requirements, and lower maximum sizes of credit lines.
Among banks that tightened NDFI standards or terms over the past year, major net shares cited a less favorable or more uncertain economic outlook and increased borrower credit risk as important reasons for doing so.
Banks reported stronger demand for all categories of NDFI loans. Significant net shares of banks reported stronger demand for loans to private equity funds, and moderate to modest net shares reported stronger demand for all other categories of NDFI loans. Among banks that reported stronger demand for NDFI loans, major net shares cited increased liquidity needs of NDFIs, and significant net shares cited NDFI borrowing shifting from other banks and improvements in NDFIs’ investment opportunities as important reasons for stronger demand.
This document was prepared by Colin Campbell, with the assistance of Erica Gonzales and Carlo Wix, Division of Monetary Affairs, Board of Governors of the Federal Reserve System.
1. Responses were received from 64 domestic banks and 18 U.S. branches and agencies of foreign banks. Respondent banks received the survey on March 23, 2026, and responses were due by April 3, 2026. Unless otherwise indicated, this summary refers to the responses of domestic banks. Return to text
2. Large and middle-market firms are defined as firms with annual sales of $50 million or more, and small firms are those with annual sales of less than $50 million. Return to text
3. For questions that ask about lending standards or terms, "net fraction" (or "net percentage") refers to the fraction of banks that reported having tightened ("tightened considerably" or "tightened somewhat") minus the fraction of banks that reported having eased ("eased considerably" or "eased somewhat"). For questions that ask about loan demand, this term refers to the fraction of banks that reported stronger demand ("substantially stronger" or "moderately stronger") minus the fraction of banks that reported weaker demand ("substantially weaker" or "moderately weaker"). For this summary, when standards, terms, or demand are said to have "remained basically unchanged," the net percentage of respondent banks that reported either tightening or easing of standards or terms, or stronger or weaker demand, is greater than or equal to 0 and less than or equal to 5 percent; "modest" refers to net percentages greater than 5 and less than or equal to 10 percent; "moderate" refers to net percentages greater than 10 and less than or equal to 20 percent; "significant" refers to net percentages greater than 20 and less than 50 percent; and "major" refers to net percentages greater than or equal to 50 percent. Return to text
4. Lending standards characterize banks’ policies for approving applications for a certain loan category. Conditional on approving loan applications, lending terms describe banks’ conditions included in loan contracts, such as those listed for C&I loans under question 2 to both domestic and foreign banks and those listed for credit card, auto, and other consumer loans under questions 21–23 to domestic banks. Thus, standards reflect the extensive margin of lending, while terms reflect the intensive margin of lending. With respect to C&I loans, banks were asked about the costs, maximum size, and maximum maturity of credit lines; spreads of loan rates over the bank’s cost of funds; premiums charged on riskier loans; terms on loan covenants; collateralization requirements; and the use of interest rate floors. Return to text
5. As an exception, a modest net share of banks reported lower loan-to-value ratios for CLD loans. Return to text
6. The seven categories of residential home-purchase loans that banks are asked to consider are government-sponsored enterprise (GSE)-eligible, government, qualified mortgage (QM) non-jumbo non-GSE-eligible, QM jumbo, non-QM jumbo, non-QM non-jumbo, and subprime. See the survey results tables that follow this summary for a description of each of these loan categories. The definition of a QM was introduced in the 2013 Mortgage Rules under the Truth in Lending Act (12 C.F.R. pt. 1026.32, Regulation Z). The standard for a QM excludes mortgages with loan characteristics such as negative amortization, balloon and interest-only payment schedules, terms exceeding 30 years, alt-A or no documentation, and total points and fees that exceed 3 percent of the loan amount. For more information on the ability to repay and QM standards under Regulation Z, see Consumer Financial Protection Bureau, "Ability-to-Repay/Qualified Mortgage Rule," webpage, https://www.consumerfinance.gov/rules-policy/final-rules/ability-to-pay-qualified-mortgage-rule. In addition, a loan is required to meet certain price-based thresholds included in the General QM loan definition, which are outlined in the Summary of the Final Rule; see Consumer Financial Protection Bureau (2020), "Qualified Mortgage Definition under the Truth in Lending Act (Regulation Z): General QM Loan Definition," final rule (Docket No. CFPB-2020-0020), Federal Register, vol. 85 (December 29), pp. 86308–09, https://www.federalregister.gov/d/2020-27567/p-17. Return to text
7. Large banks reported easier standards across most RRE loan categories, while other banks mostly left standards unchanged or reported tightening on net. Return to text
8. A modest net share of large banks reported easing standards for HELOCs over the first quarter, while other banks reported leaving standards basically unchanged. Return to text
9. Significant to moderate net shares of large banks reported weakening demand across most categories of mortgages, while moderate to modest net shares of other banks reported stronger demand across most categories of mortgages. Return to text
10. Banks were asked about changes in credit limits (credit card accounts only), maximum maturity (auto loans and other consumer loans only), loan rate spreads over costs of funds, the minimum percent of outstanding balances required to be repaid each month (credit card accounts only), the minimum required down payment (auto loans and other consumer loans only), the minimum required credit score, and the extent to which loans are granted to borrowers not meeting credit-scoring thresholds. Return to text
11. For auto loans, a modest net share of banks reported decreasing the extent to which loans are granted to some customers that do not meet credit-scoring thresholds, while modest and moderate net shares of banks reported easing maximum maturities and spreads of interest rates charged on outstanding balances over their bank’s cost of funds, respectively. For other consumer loans, a modest net share of banks reported increased minimum required credit scores and decreasing the extent to which loans are granted to some customers that do not meet credit-scoring thresholds. All other queried terms for auto loans and other consumer loans remained basically unchanged. Return to text
12. The categories of NDFI loans banks are asked to consider are private equity funds, business credit intermediaries, mortgage credit intermediaries, consumer credit intermediaries, and other NDFIs. Return to text