Senior Loan Officer Opinion Survey on Bank Lending Practices
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The July 2026 Senior Loan Officer Opinion Survey on Bank Lending Practices
The July 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 second quarter of 2026.1
Regarding loans to businesses over the second quarter, survey respondents reported, on balance, basically unchanged standards for commercial and industrial (C&I) loans to firms of all sizes. Meanwhile, banks reported stronger demand for C&I loans from large and middle-market firms and basically unchanged demand for C&I loans from small firms on net.2 Furthermore, banks generally reported easier standards and basically unchanged demand for commercial real estate (CRE) loans.
For loans to households, banks reported mixed changes in lending standards and weaker demand for residential real estate (RRE) loans on balance. Standards were unchanged and demand strengthened for home equity lines of credit (HELOCs). In addition, standards tightened for credit card loans, with demand remaining basically unchanged. Standards remained basically unchanged for auto and other consumer loans, while demand weakened for auto loans and remained unchanged for other consumer loans.
The July SLOOS included a set of special questions inquiring about the current levels of lending standards relative to the midpoint of the range over which banks' standards have varied since 2005. Banks reported that, on balance, the levels of standards are currently at the tighter end of the range for all loan categories except C&I loans, for which standards are generally easier than their midpoints. Compared with the July 2025 survey, banks reported easier levels of standards for all categories except consumer loans.
A second set of special questions similarly inquired about the current levels of standards for loans to non-depository financial institutions (NDFIs) relative to the range of standards that has prevailed since 2011. Banks reported, on balance, that the levels of standards for all queried types of NDFI loans—including loans to mortgage credit intermediaries, business credit intermediaries, private equity funds, consumer credit intermediaries, and other NDFIs—are at the tighter ends of their historical ranges.
Lending to Businesses
(Table 1, questions 1-12; table 2, questions 1-8)
Questions on commercial and industrial lending. Over the second quarter, banks reported having left standards basically unchanged, on net, for C&I loans to firms of all sizes.3 In addition, banks reported having eased or left basically unchanged all queried terms for C&I loans to firms of all sizes.4 Significant and moderate net shares of banks reported charging narrower loan rate spreads to large and middle-market firms and to small firms, respectively, while moderate net shares of banks also reported having eased the maximum size and costs of credit lines to large and middle-market firms. Most remaining C&I loan terms were basically unchanged on net.5 Meanwhile, a modest net share of foreign banks reported having tightened standards for C&I loans over the second quarter.
A moderate net share of banks reported stronger demand for C&I loans from large and middle-market firms, while loan demand from small firms was basically unchanged.6 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. Further, a significant net share of foreign banks reported stronger demand for C&I loans.
Questions on commercial real estate lending. Over the second quarter, moderate and modest net shares of banks reported having eased standards for loans secured by nonfarm nonresidential (NFNR) properties and multifamily properties, respectively, while standards for construction and land development (CLD) loans remained basically unchanged on net.7 In addition, a moderate net share of foreign banks reported tighter standards on CRE loans.
Regarding demand for CRE loans, a moderate net share of banks reported weaker demand for CLD loans, while demand remained basically unchanged for NFNR and multifamily loans. Changes in demand for NFNR and multifamily loans were mixed across bank size categories, as large banks reported stronger demand and other banks reported weaker demand for such loans. A moderate net share of foreign banks reported stronger demand for CRE loans.
Lending to Households
(Table 1, questions 13-26)
Questions on residential real estate lending. Banks reported having left standards basically unchanged over the second quarter for most types of residential mortgage loans except jumbo mortgages, for which a modest net share of banks reported having eased standards.8 Standards for HELOCs were also basically unchanged, on net.
Meanwhile, banks reported weaker demand, on balance, across RRE loan categories over the second quarter. Moderate net shares of banks reported weaker demand for government-sponsored enterprise (GSE)-eligible, government, non-qualified mortgage (QM) jumbo, and non-QM non-jumbo residential mortgages. Additionally, modest net shares of banks reported weaker demand for QM jumbo and QM non-jumbo non-GSE-eligible mortgages. In contrast, a modest net share of banks reported stronger demand for HELOCs.
Questions on consumer lending. Over the second quarter, a modest net share of banks reported tighter standards on credit card loans, while standards remained basically unchanged for auto and other consumer loans. In addition, banks reported having left most queried terms unchanged across all consumer loan types.9
Regarding changes in demand for consumer loans over the second quarter, a moderate net share of banks reported weaker demand for auto loans, while demand for credit card and other consumer loans remained basically unchanged.
Special Questions on Current Level of Banks' Lending Standards
(Table 1, questions 27-28; table 2, questions 9-10)
As with all July surveys since 2011, the July 2026 SLOOS included a set of special questions asking respondents to describe the current levels of lending standards at their bank. Specifically, respondents were asked to consider the range over which their lending standards have varied since 2005 and to report where the current level of standards is relative to the midpoint of that range.
For C&I loans, banks reported that the current levels of standards were easier than the midpoints of their historical ranges for syndicated or club loans to investment-grade firms and non-syndicated loans to large and middle-market firms and to small firms. Standards were near their midpoints for syndicated or club loans to below-investment-grade firms and loans to very small firms.10 Compared with July 2025, standards have eased across all C&I loan types.11
For CRE loans, a significant net share of banks reported that lending standards were at the tighter end of their range for CLD loans, while moderate net shares reported relatively tight levels of standards for NFNR and multifamily loans. Nonetheless, these net shares of banks that reported standards to be at the tighter end are lower than those reporting tighter standards in the July 2025 survey.12
Regarding RRE loans, significant net shares of banks reported that lending standards were at the tighter ends of their ranges for jumbo mortgages and HELOCs, while moderate net shares reported standards at the tighter ends of their ranges for GSE and government residential mortgages. Compared with July 2025, lower net shares of banks reported that levels were at the tighter ends of their ranges for residential mortgage loans, while a similar net share reported so for HELOCs.
Regarding consumer loans, standards were at the tighter ends of their historical ranges for all categories. A major net share of banks reported standards at the tighter end of their range for subprime credit card loans, and significant net shares reported so for subprime auto loans and other consumer loans. In addition, moderate and modest net shares of banks reported standards at the tighter ends of their ranges for prime credit card and auto loans, respectively. Compared with July 2025, similar net shares of banks reported standards at the tighter ends of their ranges for prime credit card and auto loans, while greater net shares of banks reported relatively tight levels of standards for the remaining consumer loan categories.
The July 2026 survey also asked banks about their current levels of standards for loans to NDFIs.13 For all queried NDFI loan types—which included mortgage credit intermediaries, business credit intermediaries, private equity funds, consumer credit intermediaries, and other NDFIs—significant net shares of banks reported standards as being at the tighter ends of their historical ranges since 2011.
This document was prepared by Luke Morgan, with the assistance of Adrian Balderamos, Meghan Carpenter, and Andre F. Silva, Division of Monetary Affairs, Board of Governors of the Federal Reserve System.
1. Responses were received from 56 domestic banks and 18 U.S. branches and agencies of foreign banks. Respondent banks received the survey on June 17, 2026, and responses were due by July 2, 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 tighter or easier 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. Modest net shares of banks also reported having eased the maximum maturity of loans or credit lines to large and middle-market firms and having eased the costs of credit lines to small firms. Among banks that reported easier standards or terms for C&I loans, a major net share cited more aggressive competition from other banks or nonbanks as an important reason for doing so; significant net shares of banks cited increased liquidity in the secondary market for these loans, higher risk tolerance, and a more favorable or less uncertain economic outlook; and moderate net shares cited expected improvements in their capital or liquidity positions, reduced concerns about the effects of legislative changes, supervisory actions, or changes in accounting standards, and the improvement of industry-specific problems. Return to text
6. The most frequently cited reasons for stronger demand, reported by major net shares of banks, were higher customer investment in plant or equipment as well as increased financing needs for inventory, accounts receivable, and mergers or acquisitions. Return to text
7. While large banks reported easier standards for all CRE loan types, other banks reported basically unchanged standards for loans secured by multifamily properties and CLD loans. Large banks are defined as those with total domestic assets of $100 billion or more as of March 31, 2026. Other banks are defined as those with total domestic assets of less than $100 billion as of March 31, 2026. Return to text
8. The seven categories of residential home-purchase loans that banks are asked to consider are GSE-eligible, government, 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 (ATR) 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
9. 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), 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
10. A significant net share of banks reported that standards for syndicated or club loans to investment-grade firms were easier, on net, than the midpoint of their range, while moderate net shares reported so for non-syndicated loans to large and middle-market firms and to small firms. Return to text
11. Among foreign bank respondents, C&I loan standards were reported to be easier, on net, than the midpoints of their historical ranges for syndicated or club loans to investment-grade and below-investment-grade firms. In contrast, standards were reported to be at the tighter end of their historical range for non-syndicated loans to small firms and near the midpoint for non-syndicated loans to large and middle-market firms. Return to text
12. Similarly, foreign banks reported that standards were at the tighter ends of their historical ranges for all CRE loan types. Return to text
13. In particular, banks were asked about the period during which they began lending to non-depository financial institutions; the periods during which the levels of standards for loans to NDFIs were tightest and easiest since 2011; and the current level of lending standards for loans to NDFIs relative to the midpoint of this range. Banks most commonly reported having lent to NDFIs since before 2011 and cited standards as being tightest for such loans during the current period (since 2023). The responses were mixed about the time period during which standards were easiest. Return to text