The Senior Loan Officer Opinion Survey on Bank Lending Practices

DIVISION OF MONETARY AFFAIRS

For release at 2:00 p.m. ET

TO:

February 2, 2009

HEADS OF RESEARCH AT ALL FEDERAL RESERVE BANKS

Enclosed for distribution to respondents is a national summary of the January 2009
Senior Loan Officer Opinion Survey on Bank Lending Practices.

Enclosures

This document is available on the Federal Reserve Board=s web site
(http://www.federalreserve.gov/boarddocs/surveys).

Board of Governors of the Federal Reserve System

The January 2009 Senior Loan Officer Opinion Survey
on Bank Lending Practices
The January 2009 Senior Loan Officer Opinion Survey on Bank Lending Practices
addressed changes in the supply of, and demand for, loans to businesses and households
over the past three months.1 The survey also included three sets of special questions:
The first set asked banks about changes in lending policies on commercial real estate
loans over the past year and new extensions of such loans over the second half of 2008;
the second set queried banks about changes in the size of existing credit lines for
businesses and households; and the third set asked banks about the use of interest rate
floors in floating-rate loan agreements with both businesses and households. This article
is based on responses from 53 domestic banks and 23 U.S. branches and agencies of
foreign banks.
In the January survey, the net fractions of respondents that reported having tightened their
lending policies on all major loan categories over the previous three months stayed very
elevated. Relative to the October survey, these net fractions generally edged down
slightly or remained unchanged. Respondents indicated that demand for loans from both
businesses and households continued to weaken, on balance, over the survey period.
In response to the special questions on commercial real estate lending, significant net
fractions of both foreign and domestic institutions reported having tightened over the past
year all loan policies about which they were queried. At the same time, about 15 percent
of domestic banks, on net, indicated that the shutdown of the securitization market for
commercial mortgage-backed securities (CMBS) since the middle of 2008 has led to an
increase in the extension of new commercial real estate loans at their bank. Regarding
the other special questions, banks reported having reduced credit limits on existing credit
lines over the last three months across a wide range of loan types. Banks also reported an
increase in the use of interest rate floors in new loan agreements during 2008.
Questions on Lending to Businesses
(Table 1, questions 1-10; Table 2, questions 1-10)
Commercial and industrial lending. About 65 percent of domestic banks reported
having tightened lending standards on commercial and industrial (C&I) loans to large and
middle-market firms over the past three months. This percentage was down from the
reported tightening in the October survey but still above the previous peaks reported in
1

2009.

Respondent banks received the survey on or after December 30, 2008, and their responses were due January 13,

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Senior Loan Officer Opinion Survey

1990 and 2001. At about 70 percent, the fraction of domestic respondents that tightened
standards on C&I loans to small firms was only slightly lower than that found in the
October survey. Significant majorities of domestic respondents indicated that they had
further tightened price terms on C&I loans to firms of all sizes over the past three
months. Around 90 percent of domestic banks indicated that they had increased spreads
of loan rates over their cost of funds for C&I loans to large and middle-market firms and
to small firms—fractions slightly lower than those in the October survey. Likewise, very
large fractions of banks reported having charged higher premiums on riskier loans and
having increased the costs of credit lines to firms of all sizes over the survey period.
On net, the fractions of banks that reported having tightened nonprice terms on C&I loans
to large and middle-market firms over the past three months stayed at an elevated level
but declined relative to the October survey. Large fractions of banks again noted that
they had reduced both maximum size and the maximum maturity of loans or credit lines
to firms of all sizes. In addition, about 70 percent of all domestic respondents reported
having tightened covenants on C&I loans to large and middle-market firms and about 60
percent reported having done so on such loans to small firms.
U.S. branches and agencies of foreign banks also tightened their business lending stance
further over the past three months. About 65 percent of foreign institutions, a slightly
smaller percentage than in October, indicated in the January survey that they had firmed
their lending standards on C&I loans. Large fractions of foreign respondents had
tightened price and nonprice terms on C&I loans over the survey period, including
increasing the premiums charged on riskier loans, raising the cost of credit lines, and
reducing the maximum size of credit lines. The majority of foreign banks also reported
that they had imposed more-restrictive covenants and collateralization requirements on
C&I loans.
All domestic and foreign respondents pointed to a less favorable or more uncertain
economic outlook as a reason for tightening their lending standards and terms on C&I
loans over the past three months. Most respondents indicated that a worsening of
industry-specific problems and their bank’s reduced tolerance for risk were also
important factors in their decision to tighten C&I lending policies. In contrast, only about
25 percent of the domestic respondents that had tightened standards or terms noted that a
deterioration in their bank’s current or expected capital position had contributed to the
change, in comparison with approximately 40 percent in the October survey. High net
percentages of foreign respondents gave as reasons for tightening standards and terms on
C&I loans decreased liquidity in the secondary market for C&I loans (75 percent) and an
increase in defaults by borrowers in public debt markets (70 percent).

3

Board of Governors of the Federal Reserve System

On balance, domestic and foreign respondents reported a further weakening of demand
for C&I loans over the past three months. On net, about 60 percent of domestic
respondents reported a reduction in demand for such loans from firms of all sizes,
compared with about 15 percent of respondents that, on net, had reported a decrease in
C&I loan demand in the October survey. About 25 percent, on net, of U.S. branches and
agencies of foreign banks saw a decrease in demand for C&I loans over the past three
months, compared with the 5 percent of respondents, on net, in the October survey.
Substantial majorities of the domestic institutions that had experienced weaker demand
for C&I loans over the past three months pointed to decreases in their customers’ needs
to finance investment in plant and equipment, to finance mergers and acquisitions, to
finance inventories, and to finance customer accounts receivable as reasons for the
weaker demand. Among the few domestic respondents that saw an increase in loan
demand over the past three months, all indicated that business borrowing had shifted to
their bank from other bank or nonbank sources because the other sources had become less
attractive. In addition, over 30 percent of domestic and foreign institutions, on net,
reported that inquiries from potential business borrowers had decreased during the survey
period.
Commercial real estate lending. On balance, about 80 percent of domestic banks
reported that they had tightened their lending standards on commercial real estate (CRE)
loans over the past three months, slightly less than the roughly 85 percent that reported
doing so in the October survey. Fifty percent of foreign respondents also indicated that
they had tightened their lending standards on CRE loans. On net, about 55 percent of
domestic and foreign respondents reported weaker demand for CRE loans over the survey
period.
In response to special questions on CRE lending, significant net fractions of banks
reported having tightened many lending policies on CRE loans. Over 2008 as a whole,
about 95 percent of domestic banks increased their loan-rate spreads, and about
80 percent tightened their loan-to-value ratios. About 75 percent of foreign respondents,
on net, reported wider loan-rate spreads, and about 65 percent, on net, had reduced their
loan-to-value ratios. About 30 percent of the domestic respondents indicated that the
shutdown of the CMBS securitization market had led to an increase in CRE lending at
their bank over the second half of 2008, whereas about 15 percent indicated that the
shutdown of the CMBS securitization market had reduced the volume of their CRE
lending.

4

Senior Loan Officer Opinion Survey

Questions on Lending to Households
(Table 1, questions 11-20)
Residential real estate lending. Smaller, though still substantial, fractions of domestic
respondents reported having tightened lending standards on prime and nontraditional
residential mortgages in the January survey. About 45 percent of domestic respondents
indicated that they had tightened their lending standards on prime mortgages over the
past three months, and almost 50 percent of the 25 banks that originated nontraditional
residential mortgage loans over the survey period reported having tightened their lending
standards on such loans. About 10 percent of domestic respondents saw weaker demand,
on net, for prime residential mortgage loans over the past three months, a significantly
lower fraction than the roughly 50 percent that so reported in the October survey. About
65 percent of respondents—a slightly lower percentage than in the October survey—
reportedly experienced weaker demand for nontraditional mortgage loans over the same
period. Only four banks reported making subprime mortgage loans over the past three
months.
On net, about 60 percent of domestic respondents, down from 75 percent in the October
survey, noted that they had tightened their lending standards for approving applications
for revolving home equity lines of credit (HELOCs) over the past three months. Twenty
percent of domestic banks, on net, reported weaker demand for HELOCs over the past
three months, slightly less than the percentage that had reported weaker demand in the
October survey.
Consumer lending. Large fractions of domestic banks continued to report a tightening
of policies on both credit card and other consumer loans over the past three months.
Nearly 60 percent of respondents indicated that they had tightened lending standards on
credit card and other consumer loans, about the same fractions as in the October survey.
Close to 55 percent of respondents reported having reduced the extent to which both
credit card accounts and other consumer loans were granted to customers who did not
meet credit-scoring thresholds. Roughly 45 percent of the respondents also reported
having raised minimum required credit scores on credit card accounts and other consumer
loans, a proportion slightly lower than posted in the October survey. About 45 percent of
banks reported having lowered credit limits for either new or existing credit card
customers, down from the 60 percent that reported doing so in the October survey.
On net, about 15 percent of domestic banks indicated that they had become either
somewhat or much less willing to make consumer installment loans over the past three
months, a notable change from the roughly 45 percent that so indicated in the October

5

Board of Governors of the Federal Reserve System

survey. About 45 percent of respondents, on net, reported that they had experienced
weaker demand for consumer loans of all types, similar to the fraction in the October
survey.
Special Questions
(Table 1, questions 21-23; Table 2, questions 11-13)
Existing credit lines. The January survey included a special question that queried banks
on how they had changed the sizes of credit lines for existing customers for a number of
account types over the past three months. On net, domestic banks reported that they had
reduced the size of existing credit lines for all major types of business and household
accounts. Regarding existing accounts for businesses, roughly 60 percent, on balance,
reported a decrease in the limits on commercial construction lines of credit, about
50 percent indicated a decrease in the limits on credit lines extended to financial firms,
about 30 percent indicated a decrease in credit limits on business credit card accounts,
and roughly 25 percent noted a decrease in the size of C&I credit lines. On net, large
fractions of foreign banks also decreased limits on commercial construction lines of
credit, credit lines extended to financial firms, and C&I credit lines. Regarding accounts
for households, about 40 percent of domestic banks reported having reduced the sizes of
existing home equity lines of credit, on net, and approximately 35 percent reported
having trimmed existing consumer credit card account limits.
Use of interest rate floors. The January survey also included special questions
regarding the use of interest rate floors in floating-rate loan agreements during 2008.
Eighty percent of domestic banks cited an increase in their use of interest rate floors in
such agreements with businesses last year, while about 45 percent of domestic banks
cited an increase in the use of such rate floors on loans to households over the same
period. No domestic bank reported a reduction in the use of interest rate floors on loans
to businesses or households last year. Large fractions of domestic banks, however, noted
that less than 5 percent of their outstanding loans—to both households and businesses—
currently had interest rate floors that were binding, and only a small number of
respondents indicated that the majority of their outstanding loans to households or
businesses had binding rate floors.

This document was prepared by Seung Lee and Tara Rice with the assistance of Robert
Kurtzman, Division of Monetary Affairs, Board of Governors of the Federal Reserve
System.

Measures of Supply and Demand for Commercial and Industrial Loans,
by Size of Firm Seeking Loan

Net Percentage of Domestic Respondents Tightening Standards for Commercial and Industrial Loans
Percent
100

Oct.
survey

80

Loans to large and medium-sized firms
Loans to small firms

60
40
20
0
-20
-40

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

Net Percentage of Domestic Respondents Increasing Spreads of Loan Rates over Banks’ Costs of Funds
Percent
100
80
60
40
20
0
-20
-40
-60
-80
1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

Net Percentage of Domestic Respondents Reporting Stronger Demand for Commercial and Industrial Loans
Percent
60
40
20
0
-20
-40
-60
-80
1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

Measures of Supply and Demand for Commercial Real Estate Loans
Net Percentage of Domestic Respondents Tightening Standards for Commercial Real Estate Loans
Percent
100

Oct.
survey
80

60

40

20

0

-20

-40

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

Net Percentage of Domestic Respondents Reporting Stronger Demand for Commercial Real Estate Loans
Percent
60

40

20

0

-20

-40

-60

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

Measures of Supply and Demand for Residential Mortgage Loans

Net Percentage of Domestic Respondents Tightening Standards for Residential Mortgage Loans
Percent

Percent

100

100

80

80

60

60

40

40

All residential
20

20

0

0

Prime
Nontraditional
-20

-20

Subprime
1990

1992

1994

1996

1998

2000

2002

2004

2006

Q2

Q4

2007

Q2

Q4

2008

2009

Note: For data starting in 2007:Q2, changes in standards for prime, nontraditional, and subprime mortgage loans are reported separately.

Net Percentage of Domestic Respondents Reporting Stronger Demand for Residential Mortgage Loans
Percent

Percent

80

80

Prime

All residential

60

60

Nontraditional
Subprime

40

40

20

20

0

0

-20

-20

-40

-40

-60

-60

-80

-80

1990

1992

1994

1996

1998

2000

2002

2004

2006

Q2
2007

Q4

Q2
2008

Q4
2009

Note: For data starting in 2007:Q2, changes in demand for prime, nontraditional, and subprime mortgage loans are reported separately.

Measures of Supply and Demand for Consumer Loans

Net Percentage of Domestic Respondents Tightening Standards for Consumer Loans
Percent
100

Oct.
survey

80
60

Credit card loans
Other consumer loans

40
20
0
-20

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

Net Percentage of Domestic Respondents Reporting Increased Willingness to Make Consumer Installment Loans
Percent
40

20

0

-20

-40
1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

Net Percentage of Domestic Respondents Reporting Stronger Demand for Consumer Loans
Percent
60
40
20
0
-20
-40
-60
1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

Table 1

Senior Loan Officer Opinion Survey on Bank Lending Practices
at Selected Large Banks in the United States 1
(Status of policy as of January 2009)
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 middlemarket 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

5

9.4

4

13.8

1

4.2

Tightened somewhat

29

54.7

15

51.7

14

58.3

Remained basically unchanged

19

35.8

10

34.5

9

37.5

Eased somewhat

0

0.0

0

0.0

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

53

100.0

29

100.0

24

100.0

Total

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

4

7.7

3

10.7

1

4.2

Tightened somewhat

32

61.5

16

57.1

16

66.7

Remained basically unchanged

16

30.8

9

32.1

7

29.2

Eased somewhat

0

0.0

0

0.0

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

52

100.0

28

100.0

24

100.0

Total

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

3

5.7

3

10.3

0

0.0

Tightened somewhat

25

47.2

16

55.2

9

37.5

Remained basically unchanged

25

47.2

10

34.5

15

62.5

Eased somewhat

0

0.0

0

0.0

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

53

100.0

29

100.0

24

100.0

Total

b. Maximum maturity of loans or credit lines
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

3

5.7

3

10.3

0

0.0

Tightened somewhat

20

37.7

13

44.8

7

29.2

Remained basically unchanged

30

56.6

13

44.8

17

70.8

Eased somewhat

0

0.0

0

0.0

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

53

100.0

29

100.0

24

100.0

Total
c. Costs of credit lines

All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

13

24.5

7

24.1

6

25.0

Tightened somewhat

32

60.4

19

65.5

13

54.2

Remained basically unchanged

8

15.1

3

10.3

5

20.8

Eased somewhat

0

0.0

0

0.0

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

53

100.0

29

100.0

24

100.0

Total

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

15

28.3

8

27.6

7

29.2

Tightened somewhat

34

64.2

19

65.5

15

62.5

Remained basically unchanged

4

7.5

2

6.9

2

8.3

Eased somewhat

0

0.0

0

0.0

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

53

100.0

29

100.0

24

100.0

Total

e. Premiums charged on riskier loans
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

22

41.5

12

41.4

10

41.7

Tightened somewhat

24

45.3

13

44.8

11

45.8

Remained basically unchanged

7

13.2

4

13.8

3

12.5

Eased somewhat

0

0.0

0

0.0

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

53

100.0

29

100.0

24

100.0

Total
f. Loan covenants

All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

1

1.9

1

3.4

0

0.0

Tightened somewhat

37

69.8

24

82.8

13

54.2

Remained basically unchanged

15

28.3

4

13.8

11

45.8

Eased somewhat

0

0.0

0

0.0

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

53

100.0

29

100.0

24

100.0

Total
g. Collateralization requirements

All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

1

1.9

1

3.4

0

0.0

Tightened somewhat

29

54.7

18

62.1

11

45.8

Remained basically unchanged

23

43.4

10

34.5

13

54.2

Eased somewhat

0

0.0

0

0.0

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

53

100.0

29

100.0

24

100.0

Total

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

3

5.8

3

10.7

0

0.0

Tightened somewhat

19

36.5

13

46.4

6

25.0

Remained basically unchanged

30

57.7

12

42.9

18

75.0

Eased somewhat

0

0.0

0

0.0

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

52

100.0

28

100.0

24

100.0

Total

b. Maximum maturity of loans or credit lines
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

3

5.8

3

10.7

0

0.0

Tightened somewhat

18

34.6

13

46.4

5

20.8

Remained basically unchanged

31

59.6

12

42.9

19

79.2

Eased somewhat

0

0.0

0

0.0

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

52

100.0

28

100.0

24

100.0

Total

c. Costs of credit lines
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

9

17.3

4

14.3

5

20.8

Tightened somewhat

32

61.5

19

67.9

13

54.2

Remained basically unchanged

11

21.2

5

17.9

6

25.0

Eased somewhat

0

0.0

0

0.0

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

52

100.0

28

100.0

24

100.0

Total

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

10

19.2

4

14.3

6

25.0

Tightened somewhat

36

69.2

21

75.0

15

62.5

Remained basically unchanged

6

11.5

3

10.7

3

12.5

Eased somewhat

0

0.0

0

0.0

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

52

100.0

28

100.0

24

100.0

Total

e. Premiums charged on riskier loans
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

19

36.5

11

39.3

8

33.3

Tightened somewhat

24

46.2

12

42.9

12

50.0

Remained basically unchanged

9

17.3

5

17.9

4

16.7

Eased somewhat

0

0.0

0

0.0

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

52

100.0

28

100.0

24

100.0

Total
f. Loan covenants

All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

2

3.8

2

7.1

0

0.0

Tightened somewhat

29

55.8

17

60.7

12

50.0

Remained basically unchanged

21

40.4

9

32.1

12

50.0

Eased somewhat

0

0.0

0

0.0

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

52

100.0

28

100.0

24

100.0

Total
g. Collateralization requirements

All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

1

1.9

1

3.6

0

0.0

Tightened somewhat

28

53.8

17

60.7

11

45.8

Remained basically unchanged

23

44.2

10

35.7

13

54.2

Eased somewhat

0

0.0

0

0.0

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

52

100.0

28

100.0

24

100.0

Total

3. If your bank has tightened or eased its credit standards or its terms for C&I loans or credit lines over the
past three months (as described in questions 1 and 2), how important have been the following possible reasons
for the change?
A. Possible reasons for tightening credit standards or loan terms:
a. Deterioration in your bank's current or expected capital position
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

36

73.5

18

66.7

18

81.8

Somewhat important

11

22.4

7

25.9

4

18.2

2

4.1

2

7.4

0

0.0

49

100.0

27

100.0

22

100.0

Very important
Total

b. Less favorable or more uncertain economic outlook
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

14

28.6

5

18.5

9

40.9

Very important

35

71.4

22

81.5

13

59.1

Total

49

100.0

27

100.0

22

100.0

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

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

4

8.2

1

3.7

3

13.6

Somewhat important

24

49.0

13

48.1

11

50.0

Very important

21

42.9

13

48.1

8

36.4

Total

49

100.0

27

100.0

22

100.0

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

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

22

44.9

11

40.7

11

50.0

Somewhat important

22

44.9

11

40.7

11

50.0

5

10.2

5

18.5

0

0.0

49

100.0

27

100.0

22

100.0

Very important
Total
e. Reduced tolerance for risk

All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

7

14.3

5

18.5

2

9.1

Somewhat important

29

59.2

14

51.9

15

68.2

Very important

13

26.5

8

29.6

5

22.7

Total

49

100.0

27

100.0

22

100.0

f. Decreased liquidity in the secondary market for these loans
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

27

55.1

12

44.4

15

68.2

Somewhat important

16

32.7

11

40.7

5

22.7

6

12.2

4

14.8

2

9.1

49

100.0

27

100.0

22

100.0

Very important
Total

g. Increase in defaults by borrowers in public debt markets
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

28

57.1

13

48.1

15

68.2

Somewhat important

21

42.9

14

51.9

7

31.8

0

0.0

0

0.0

0

0.0

49

100.0

27

100.0

22

100.0

Very important
Total

h. Deterioration in your bank's current or expected liquidity position
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

43

87.8

25

92.6

18

81.8

Somewhat important

4

8.2

1

3.7

3

13.6

Very important

2

4.1

1

3.7

1

4.5

49

100.0

27

100.0

22

100.0

Total

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

0

--

0

--

0

--

Somewhat important

0

--

0

--

0

--

Very important

0

--

0

--

0

--

Total

0

--

0

--

0

--

b. More favorable or less uncertain economic outlook
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

0

--

0

--

0

--

Somewhat important

0

--

0

--

0

--

Very important

0

--

0

--

0

--

Total

0

--

0

--

0

--

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

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

0

--

0

--

0

--

Somewhat important

0

--

0

--

0

--

Very important

0

--

0

--

0

--

Total

0

--

0

--

0

--

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

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

0

--

0

--

0

--

Somewhat important

0

--

0

--

0

--

Very important

0

--

0

--

0

--

Total

0

--

0

--

0

--

e. Increased tolerance for risk
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

0

--

0

--

0

--

Somewhat important

0

--

0

--

0

--

Very important

0

--

0

--

0

--

Total

0

--

0

--

0

--

f. Increased liquidity in the secondary market for these loans
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

0

--

0

--

0

--

Somewhat important

0

--

0

--

0

--

Very important

0

--

0

--

0

--

Total

0

--

0

--

0

--

g. Reduction in defaults by borrowers in public debt markets
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

0

--

0

--

0

--

Somewhat important

0

--

0

--

0

--

Very important

0

--

0

--

0

--

Total

0

--

0

--

0

--

h. Improvement in your bank's current or expected liquidity position
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

0

--

0

--

0

--

Somewhat important

0

--

0

--

0

--

Very important

0

--

0

--

0

--

Total

0

--

0

--

0

--

4. Apart from normal seasonal variation, how has demand for C&I loans changed over the past three months?
(Please consider only funds actually disbursed as opposed to requests for new or increased lines of credit.)
A. Demand for C&I loans from large and middle-market firms (annual sales of $50 million or more):
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Substantially stronger

1

1.9

1

3.4

0

0.0

Moderately stronger

4

7.5

3

10.3

1

4.2

About the same

11

20.8

5

17.2

6

25.0

Moderately weaker

29

54.7

15

51.7

14

58.3

Substantially weaker

8

15.1

5

17.2

3

12.5

53

100.0

29

100.0

24

100.0

Total

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

1

1.9

1

3.6

0

0.0

Moderately stronger

3

5.8

2

7.1

1

4.2

About the same

14

26.9

7

25.0

7

29.2

Moderately weaker

28

53.8

15

53.6

13

54.2

Substantially weaker

6

11.5

3

10.7

3

12.5

52

100.0

28

100.0

24

100.0

Total

5. If demand for C&I loans has strengthened or weakened over the past three months (as described in
question 4), how important have been the following possible reasons for the change?
A. If stronger loan demand (answer 1 or 2 to question 4A or 4B), possible reasons:
a. Customer inventory financing needs increased
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

3

50.0

3

60.0

0

0.0

Somewhat important

3

50.0

2

40.0

1

100.0

Very important

0

0.0

0

0.0

0

0.0

Total

6

100.0

5

100.0

1

100.0

b. Customer accounts receivable financing needs increased
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

3

50.0

3

60.0

0

0.0

Somewhat important

3

50.0

2

40.0

1

100.0

Very important

0

0.0

0

0.0

0

0.0

Total

6

100.0

5

100.0

1

100.0

c. Customer investment in plant or equipment increased
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

5

83.3

4

80.0

1

100.0

Somewhat important

1

16.7

1

20.0

0

0.0

Very important

0

0.0

0

0.0

0

0.0

Total

6

100.0

5

100.0

1

100.0

d. Customer internally generated funds decreased
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

2

33.3

2

40.0

0

0.0

Somewhat important

4

66.7

3

60.0

1

100.0

Very important

0

0.0

0

0.0

0

0.0

Total

6

100.0

5

100.0

1

100.0

e. Customer merger or acquisition financing needs increased
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

6

100.0

5

100.0

1

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

6

100.0

5

100.0

1

100.0

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

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

0

0.0

0

0.0

0

0.0

Somewhat important

3

50.0

2

40.0

1

100.0

Very important

3

50.0

3

60.0

0

0.0

Total

6

100.0

5

100.0

1

100.0

B. If weaker loan demand (answer 4 or 5 to question 4A or 4B), possible reasons:
a. Customer inventory financing needs decreased
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important
Somewhat important
Very important
Total

7

18.9

4

19.0

3

18.8

23

62.2

12

57.1

11

68.8

7

18.9

5

23.8

2

12.5

37

100.0

21

100.0

16

100.0

b. Customer accounts receivable financing needs decreased
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important
Somewhat important
Very important
Total

7

18.9

4

19.0

3

18.8

23

62.2

12

57.1

11

68.8

7

18.9

5

23.8

2

12.5

37

100.0

21

100.0

16

100.0

c. Customer investment in plant or equipment decreased
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

2

5.4

2

9.5

0

0.0

Somewhat important

17

45.9

7

33.3

10

62.5

Very important

18

48.6

12

57.1

6

37.5

Total

37

100.0

21

100.0

16

100.0

d. Customer internally generated funds increased
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

29

80.6

17

85.0

12

75.0

Somewhat important

4

11.1

1

5.0

3

18.8

Very important

3

8.3

2

10.0

1

6.3

36

100.0

20

100.0

16

100.0

Total

e. Customer merger or acquisition financing needs decreased
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

6

16.2

3

14.3

3

18.8

Somewhat important

17

45.9

7

33.3

10

62.5

Very important

14

37.8

11

52.4

3

18.8

Total

37

100.0

21

100.0

16

100.0

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

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

32

88.9

18

90.0

14

87.5

Somewhat important

4

11.1

2

10.0

2

12.5

Very important

0

0.0

0

0.0

0

0.0

36

100.0

20

100.0

16

100.0

Total

6. At your bank, 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 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

2

3.8

1

3.4

1

4.2

The number of inquiries has increased moderately

7

13.2

4

13.8

3

12.5

The number of inquiries has stayed about the same

16

30.2

9

31.0

7

29.2

The number of inquiries has decreased moderately

20

37.7

11

37.9

9

37.5

The number of inquiries has decreased substantially

8

15.1

4

13.8

4

16.7

53

100.0

29

100.0

24

100.0

Total

Questions 7-8 ask about commercial real estate loans at your bank, including construction and land
development loans and loans secured by nonfarm nonresidential real estate. 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
commercial real estate loans changed?
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

11

20.8

5

17.2

6

25.0

Tightened somewhat

31

58.5

19

65.5

12

50.0

Remained basically unchanged

11

20.8

5

17.2

6

25.0

Eased somewhat

0

0.0

0

0.0

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

53

100.0

29

100.0

24

100.0

Total

8. Apart from normal seasonal variation, how has demand for commercial real estate loans changed over the
past three months?
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Substantially stronger

2

3.8

1

3.4

1

4.2

Moderately stronger

6

11.3

3

10.3

3

12.5

About the same

8

15.1

1

3.4

7

29.2

Moderately weaker

24

45.3

16

55.2

8

33.3

Substantially weaker

13

24.5

8

27.6

5

20.8

Total

53

100.0

29

100.0

24

100.0

Questions 9-10 ask for additional information about commercial real estate lending at your bank. Question
9 focuses on changes in your bank’s policies on commercial real estate loans over the past year. If your
bank’s lending policies have not changed over the past year, please report them as unchanged even if they
are either restrictive or accommodative relative to longer-term norms. If your bank’s policies have
tightened or eased over the past year, please so report them regardless of how they stand relative to
longer-term norms. Question 10 focuses on new extensions of commercial real estate loans at your bank
over the second half of 2008.
9. Over the past year, how has your bank changed the following policies on commercial real estate loans?
(Please assign each policy a number between 1 and 5 using the following scale: 1=tightened considerably,
2=tightened somewhat, 3=remained basically unchanged, 4=eased somewhat, 5=eased considerably.)
a. Maximum loan size
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

10

19.2

5

17.9

5

20.8

Tightened somewhat

23

44.2

13

46.4

10

41.7

Remained basically unchanged

19

36.5

10

35.7

9

37.5

Eased somewhat

0

0.0

0

0.0

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

52

100.0

28

100.0

24

100.0

Total
b. Maximum loan maturity

All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

4

7.7

2

7.1

2

8.3

Tightened somewhat

21

40.4

12

42.9

9

37.5

Remained basically unchanged

27

51.9

14

50.0

13

54.2

Eased somewhat

0

0.0

0

0.0

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

52

100.0

28

100.0

24

100.0

Total

c. 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

24

45.3

16

55.2

8

33.3

Tightened somewhat

27

50.9

12

41.4

15

62.5

Remained basically unchanged

2

3.8

1

3.4

1

4.2

Eased somewhat

0

0.0

0

0.0

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

53

100.0

29

100.0

24

100.0

Total
d. Loan-to-value ratios

All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

12

23.1

8

28.6

4

16.7

Tightened somewhat

29

55.8

15

53.6

14

58.3

Remained basically unchanged

11

21.2

5

17.9

6

25.0

Eased somewhat

0

0.0

0

0.0

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

52

100.0

28

100.0

24

100.0

Total

e. Requirements for take-out financing
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

6

11.8

2

7.4

4

16.7

Tightened somewhat

10

19.6

6

22.2

4

16.7

Remained basically unchanged

34

66.7

18

66.7

16

66.7

Eased somewhat

1

2.0

1

3.7

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

51

100.0

27

100.0

24

100.0

Total

f. Debt-service coverage ratios
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

6

11.5

2

7.1

4

16.7

Tightened somewhat

30

57.7

18

64.3

12

50.0

Remained basically unchanged

16

30.8

8

28.6

8

33.3

Eased somewhat

0

0.0

0

0.0

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

52

100.0

28

100.0

24

100.0

Total

10. With yield spreads on commercial mortgage-backed securities (CMBS) soaring in the second half of 2008,
gross issuance of CMBS came to a halt. How has the shutdown of this securitization market affected the
volume of new extensions of commercial real estate loans at your bank over the second half of 2008? (Please
check one.)
All
Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Has led to a considerable increase in the volume of
my bank’s commercial real estate lending

3

5.7

2

6.9

1

4.2

Has led to some increase in the volume of my bank’s
commercial real estate lending

13

24.5

8

27.6

5

20.8

Has had little effect on the volume of my bank’s
commercial real estate lending

30

56.6

13

44.8

17

70.8

Has led to some reduction in the volume of my bank’s
commercial real estate lending

4

7.5

3

10.3

1

4.2

Has led to a considerable reduction in the volume of
my bank’s commercial real estate lending

3

5.7

3

10.3

0

0.0

53

100.0

29

100.0

24

100.0

Total

Questions 11-12 ask about three categories of residential mortgage loans at your bank—prime residential
mortgages, nontraditional residential mortgages, and subprime residential mortgages. Question 11 deals
with changes in your bank's credit standards for loans in each of these categories over the past three
months. Question 12 deals with changes in demand for loans in each of these categories over the same
period. 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.
For the purposes of this survey, please use the following definitions of these loan categories (note that the
loan categories are not mutually exclusive) and include first-lien loans only:
The prime category of residential mortgages includes loans made to borrowers that typically had
relatively strong, well-documented credit histories, relatively high credit scores, and relatively low
debt-to-income ratios at the time of origination. This would include fully amortizing loans that have a
fixed rate, a standard adjustable rate, or a common hybrid adjustable rate—those for which the
interest rate is initially fixed for a multi-year period and subsequently adjusts more frequently.
The nontraditional category of residential mortgages includes, but is not limited to, adjustable-rate
mortgages with multiple payment options, interest-only mortgages, and ``Alt-A'' products such as
mortgages with limited income verification and mortgages secured by non-owner-occupied
properties. (Please exclude standard adjustable-rate mortgages and common hybrid adjustable-rate
mortgages.)
The subprime category of residential mortgages typically includes loans made to borrowers that
displayed one or more of the following characteristics at the time of origination: weakened credit
histories that include payment delinquencies, chargeoffs, judgments, and/or bankruptcies; reduced
repayment capacity as measured by credit scores or debt-to-income ratios; or incomplete credit
histories.
11. Over the past three months, how have your bank's credit standards for approving applications from
individuals for mortgage loans to purchase homes changed?
A. Credit standards on mortgage loans that your bank categorizes as prime residential mortgages have:
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

3

5.9

2

7.1

1

4.3

Tightened somewhat

21

41.2

10

35.7

11

47.8

Remained basically unchanged

27

52.9

16

57.1

11

47.8

Eased somewhat

0

0.0

0

0.0

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

51

100.0

28

100.0

23

100.0

Total

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

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

3

12.0

1

5.6

2

28.6

Tightened somewhat

9

36.0

7

38.9

2

28.6

13

52.0

10

55.6

3

42.9

Eased somewhat

0

0.0

0

0.0

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

25

100.0

18

100.0

7

100.0

Remained basically unchanged

Total

For this question, 26 respondents answered “My bank does not originate nontraditional
residential mortgages.”
C. Credit standards on mortgage loans that your bank categorizes as subprime residential mortgages
have:
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

1

25.0

1

25.0

0

.

Tightened somewhat

1

25.0

1

25.0

0

.

Remained basically unchanged

2

50.0

2

50.0

0

.

Eased somewhat

0

0.0

0

0.0

0

.

Eased considerably

0

0.0

0

0.0

0

.

Total

4

100.0

4

100.0

0

.

For this question, 46 respondents answered “My bank does not originate subprime residential
mortgages.”

12. Apart from normal seasonal variation, how has demand for mortgages to purchase homes changed over
the past three months? (Please consider only new originations as opposed to the refinancing of existing
mortgages.)
A. Demand for mortgages that your bank categorizes as prime residential mortgages was:
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Substantially stronger

2

3.9

1

3.6

1

4.3

Moderately stronger

14

27.5

6

21.4

8

34.8

About the same

14

27.5

9

32.1

5

21.7

Moderately weaker

15

29.4

8

28.6

7

30.4

Substantially weaker

6

11.8

4

14.3

2

8.7

51

100.0

28

100.0

23

100.0

Total

B. Demand for mortgages that your bank categorizes as nontraditional 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

0

0.0

0

0.0

0

0.0

About the same

9

36.0

6

33.3

3

42.9

Moderately weaker

10

40.0

6

33.3

4

57.1

Substantially weaker

6

24.0

6

33.3

0

0.0

25

100.0

18

100.0

7

100.0

Total

For this question, 26 respondents answered “My bank does not originate nontraditional
residential mortgages.”

C. Demand for mortgages that your bank categorizes as subprime residential mortgages was:
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Substantially stronger

0

0.0

0

0.0

0

.

Moderately stronger

0

0.0

0

0.0

0

.

About the same

2

50.0

2

50.0

0

.

Moderately weaker

0

0.0

0

0.0

0

.

Substantially weaker

2

50.0

2

50.0

0

.

Total

4

100.0

4

100.0

0

.

For this question, 47 respondents answered “My bank does not originate subprime residential
mortgages.”

Questions 13-14 ask about revolving home equity lines of credit at your bank. Question 13 deals with
changes in your bank's credit standards over the past three months. Question 14 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.
13. 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

7

13.5

6

21.4

1

4.2

Tightened somewhat

23

44.2

11

39.3

12

50.0

Remained basically unchanged

22

42.3

11

39.3

11

45.8

Eased somewhat

0

0.0

0

0.0

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

52

100.0

28

100.0

24

100.0

Total

14. 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

1

1.9

0

0.0

1

4.2

Moderately stronger

10

19.2

4

14.3

6

25.0

About the same

20

38.5

11

39.3

9

37.5

Moderately weaker

13

25.0

7

25.0

6

25.0

Substantially weaker

8

15.4

6

21.4

2

8.3

52

100.0

28

100.0

24

100.0

Total

Questions 15-20 ask about consumer lending at your bank. Question 15 deals with changes in your bank's
willingness to make consumer loans over the past three months. Questions 16-19 deal with changes in credit
standards and loan terms over the same period. Question 20 deals 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.
15. 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

0

0.0

0

0.0

0

0.0

Somewhat more willing

2

4.0

0

0.0

2

8.7

38

76.0

23

85.2

15

65.2

Somewhat less willing

8

16.0

3

11.1

5

21.7

Much less willing

2

4.0

1

3.7

1

4.3

50

100.0

27

100.0

23

100.0

About unchanged

Total

16. 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

2

5.9

1

5.0

1

7.1

Tightened somewhat

18

52.9

12

60.0

6

42.9

Remained basically unchanged

14

41.2

7

35.0

7

50.0

Eased somewhat

0

0.0

0

0.0

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

34

100.0

20

100.0

14

100.0

Total

17. Over the past three months, how have your bank's credit standards for approving applications for
consumer loans other than credit card loans changed?
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

3

6.0

2

7.4

1

4.3

Tightened somewhat

26

52.0

13

48.1

13

56.5

Remained basically unchanged

21

42.0

12

44.4

9

39.1

Eased somewhat

0

0.0

0

0.0

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

50

100.0

27

100.0

23

100.0

Total

18. 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

2

6.3

2

11.1

0

0.0

Tightened somewhat

13

40.6

8

44.4

5

35.7

Remained basically unchanged

17

53.1

8

44.4

9

64.3

Eased somewhat

0

0.0

0

0.0

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

32

100.0

18

100.0

14

100.0

Total

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

2

6.3

0

0.0

2

14.3

Tightened somewhat

11

34.4

9

50.0

2

14.3

Remained basically unchanged

18

56.3

8

44.4

10

71.4

Eased somewhat

0

0.0

0

0.0

0

0.0

Eased considerably

1

3.1

1

5.6

0

0.0

32

100.0

18

100.0

14

100.0

Total

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

3

9.4

2

11.1

1

7.1

29

90.6

16

88.9

13

92.9

Eased somewhat

0

0.0

0

0.0

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

32

100.0

18

100.0

14

100.0

Remained basically unchanged

Total

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

15

46.9

9

50.0

6

42.9

Remained basically unchanged

17

53.1

9

50.0

8

57.1

Eased somewhat

0

0.0

0

0.0

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

32

100.0

18

100.0

14

100.0

Total

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

4

12.5

2

11.1

2

14.3

Tightened somewhat

14

43.8

9

50.0

5

35.7

Remained basically unchanged

14

43.8

7

38.9

7

50.0

Eased somewhat

0

0.0

0

0.0

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

32

100.0

18

100.0

14

100.0

Total

19. Over the past three months, how has your bank changed the following terms and conditions on consumer
loans other than credit card loans? (Please assign each term a number between 1 and 5 using the following
scale: 1=tightened considerably, 2=tightened somewhat, 3=remained basically unchanged, 4=eased
somewhat, 5=eased considerably.)
a. Maximum maturity
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

2

4.0

1

3.7

1

4.3

Tightened somewhat

10

20.0

5

18.5

5

21.7

Remained basically unchanged

38

76.0

21

77.8

17

73.9

Eased somewhat

0

0.0

0

0.0

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

50

100.0

27

100.0

23

100.0

Total

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

3

6.0

1

3.7

2

8.7

Tightened somewhat

24

48.0

12

44.4

12

52.2

Remained basically unchanged

20

40.0

12

44.4

8

34.8

Eased somewhat

2

4.0

1

3.7

1

4.3

Eased considerably

1

2.0

1

3.7

0

0.0

50

100.0

27

100.0

23

100.0

Total
c. Minimum required downpayment

All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

1

2.0

1

3.7

0

0.0

Tightened somewhat

15

30.0

7

25.9

8

34.8

Remained basically unchanged

34

68.0

19

70.4

15

65.2

Eased somewhat

0

0.0

0

0.0

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

50

100.0

27

100.0

23

100.0

Total

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

3

6.0

2

7.4

1

4.3

Tightened somewhat

21

42.0

11

40.7

10

43.5

Remained basically unchanged

26

52.0

14

51.9

12

52.2

Eased somewhat

0

0.0

0

0.0

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

50

100.0

27

100.0

23

100.0

Total

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

7

14.0

5

18.5

2

8.7

Tightened somewhat

20

40.0

11

40.7

9

39.1

Remained basically unchanged

23

46.0

11

40.7

12

52.2

Eased somewhat

0

0.0

0

0.0

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

50

100.0

27

100.0

23

100.0

Total

20. Apart from normal seasonal variation, how has demand for consumer loans of all types 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

5

9.8

1

3.7

4

16.7

About the same

17

33.3

9

33.3

8

33.3

Moderately weaker

24

47.1

15

55.6

9

37.5

Substantially weaker

5

9.8

2

7.4

3

12.5

51

100.0

27

100.0

24

100.0

Total

21. Over the past three months, how has your bank changed the size of credit lines for existing customers with
the following types of accounts? Please consider changes made to line sizes during the life of existing credit
agreements as well as changes made to line sizes upon renewal or renegotiation of existing agreements.
(Please rate the degree of change for each type of account using the following scale: 1=increased
considerably, 2=increased somewhat, 3=remained basically unchanged, 4=decreased somewhat, 5=decreased
considerably.)
a. Home equity lines of credit
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Increased considerably

0

0.0

0

0.0

0

0.0

Increased somewhat

0

0.0

0

0.0

0

0.0

Remained basically unchanged

29

58.0

15

57.7

14

58.3

Decreased somewhat

16

32.0

8

30.8

8

33.3

5

10.0

3

11.5

2

8.3

50

100.0

26

100.0

24

100.0

Decreased considerably
Total
b. Consumer credit card accounts

All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Increased considerably

0

0.0

0

0.0

0

0.0

Increased somewhat

1

2.9

1

5.3

0

0.0

Remained basically unchanged

20

58.8

10

52.6

10

66.7

Decreased somewhat

11

32.4

6

31.6

5

33.3

2

5.9

2

10.5

0

0.0

34

100.0

19

100.0

15

100.0

Decreased considerably
Total

c. Business credit card accounts
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Increased considerably

0

0.0

0

0.0

0

0.0

Increased somewhat

0

0.0

0

0.0

0

0.0

Remained basically unchanged

27

69.2

14

58.3

13

86.7

Decreased somewhat

11

28.2

9

37.5

2

13.3

1

2.6

1

4.2

0

0.0

39

100.0

24

100.0

15

100.0

Decreased considerably
Total

d. Commercial and industrial credit lines (excluding business credit card accounts)
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Increased considerably

0

0.0

0

0.0

0

0.0

Increased somewhat

1

2.0

1

3.7

0

0.0

Remained basically unchanged

35

70.0

19

70.4

16

69.6

Decreased somewhat

14

28.0

7

25.9

7

30.4

0

0.0

0

0.0

0

0.0

50

100.0

27

100.0

23

100.0

Decreased considerably
Total

e. Commercial construction lines of credit
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Increased considerably

0

0.0

0

0.0

0

0.0

Increased somewhat

1

2.0

1

3.8

0

0.0

Remained basically unchanged

17

34.7

7

26.9

10

43.5

Decreased somewhat

23

46.9

15

57.7

8

34.8

8

16.3

3

11.5

5

21.7

49

100.0

26

100.0

23

100.0

Decreased considerably
Total
f. Lines of credit for financial firms

All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Increased considerably

0

0.0

0

0.0

0

0.0

Increased somewhat

1

2.4

1

4.3

0

0.0

Remained basically unchanged

19

46.3

6

26.1

13

72.2

Decreased somewhat

14

34.1

12

52.2

2

11.1

7

17.1

4

17.4

3

16.7

41

100.0

23

100.0

18

100.0

Decreased considerably
Total

Questions 22-25 ask about the use of interest rate floors on loans to businesses and households at your
bank.
22. During 2008, to what degree did your bank change the frequency with which it includes loan rate floors in
floating rate loan agreements involving loans to businesses ?
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Increased considerably

24

48.0

9

33.3

15

65.2

Increased somewhat

16

32.0

12

44.4

4

17.4

Remained unchanged

10

20.0

6

22.2

4

17.4

Decreased somewhat

0

0.0

0

0.0

0

0.0

Decreased considerably

0

0.0

0

0.0

0

0.0

50

100.0

27

100.0

23

100.0

Total

23. During 2008, to what degree did your bank change the frequency with which it includes loan rate floors in
floating rate loan agreements involving loans to households ?
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Increased considerably

7

13.7

3

11.1

4

16.7

Increased somewhat

15

29.4

8

29.6

7

29.2

Remained unchanged

29

56.9

16

59.3

13

54.2

Decreased somewhat

0

0.0

0

0.0

0

0.0

Decreased considerably

0

0.0

0

0.0

0

0.0

51

100.0

27

100.0

24

100.0

Total

24. What percentage of the total dollar volume of outstanding loans to businesses at your bank has interest
rate floors that are currently binding?
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Less than 5 percent

23

46.9

16

61.5

7

30.4

Between 5 and 15 percent

9

18.4

2

7.7

7

30.4

Between 15 and 25 percent

8

16.3

3

11.5

5

21.7

Between 25 and 50 percent

6

12.2

4

15.4

2

8.7

50 percent or more

3

6.1

1

3.8

2

8.7

49

100.0

26

100.0

23

100.0

Total

25. What percentage of the total dollar volume of outstanding loans to households at your bank has interest
rate floors that are currently binding?
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Less than 5 percent

24

50.0

15

57.7

9

40.9

Between 5 and 15 percent

6

12.5

5

19.2

1

4.5

Between 15 and 25 percent

6

12.5

1

3.8

5

22.7

Between 25 and 50 percent

5

10.4

3

11.5

2

9.1

50 percent or more

7

14.6

2

7.7

5

22.7

48

100.0

26

100.0

22

100.0

Total

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 September 30, 2008. The
combined assets of the 29 large banks totaled $5.9 trillion, compared to $6.2 trillion for the entire panel of 53
banks, and 10.4 trillion for all domestically chartered, federally insured commercial banks.

Table 2

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 January 2009)
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

6

26.1

Tightened somewhat

9

39.1

Remained basically unchanged

8

34.8

Eased somewhat

0

0.0

Eased considerably

0

0.0

23

100.0

Total

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

4

17.4

14

60.9

Remained basically unchanged

5

21.7

Eased somewhat

0

0.0

Eased considerably

0

0.0

23

100.0

Tightened somewhat

Total
b. Maximum maturity of loans or credit lines

All Respondents
Banks Percent

Tightened considerably

1

4.3

Tightened somewhat

12

52.2

Remained basically unchanged

10

43.5

Eased somewhat

0

0.0

Eased considerably

0

0.0

23

100.0

Total

c. Costs of credit lines
All Respondents
Banks Percent

Tightened considerably

6

26.1

12

52.2

Remained basically unchanged

5

21.7

Eased somewhat

0

0.0

Eased considerably

0

0.0

23

100.0

Tightened somewhat

Total

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

Tightened considerably

7

30.4

11

47.8

Remained basically unchanged

4

17.4

Eased somewhat

1

4.3

Eased considerably

0

0.0

23

100.0

Tightened somewhat

Total
e. Premiums charged on riskier loans

All Respondents
Banks Percent

Tightened considerably

11

47.8

Tightened somewhat

7

30.4

Remained basically unchanged

5

21.7

Eased somewhat

0

0.0

Eased considerably

0

0.0

23

100.0

Total

f. Loan covenants
All Respondents
Banks Percent

Tightened considerably

4

17.4

11

47.8

Remained basically unchanged

8

34.8

Eased somewhat

0

0.0

Eased considerably

0

0.0

23

100.0

Tightened somewhat

Total
g. Collateralization requirements

All Respondents
Banks Percent

Tightened considerably

4

17.4

Tightened somewhat

9

39.1

10

43.5

Eased somewhat

0

0.0

Eased considerably

0

0.0

23

100.0

Remained basically unchanged

Total

3. If your bank has tightened or eased its credit standards or its terms for C&I loans or credit lines over the
past three months (as described in questions 1 and 2), how important have been the following possible reasons
for the change?
A. Possible reasons for tightening credit standards or loan terms:
a. Deterioration in your bank's current or expected capital position
All Respondents
Banks Percent

Not important
Somewhat important
Very important
Total

7

35.0

10

50.0

3

15.0

20

100.0

b. Less favorable or more uncertain economic outlook
All Respondents
Banks Percent

Not important

0

0.0

Somewhat important

5

25.0

Very important

15

75.0

Total

20

100.0

c. Worsening of industry-specific problems (please specify industries)
All Respondents
Banks Percent

Not important

2

10.0

Somewhat important

8

40.0

Very important

10

50.0

Total

20

100.0

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

Not important

12

60.0

Somewhat important

6

30.0

Very important

2

10.0

20

100.0

Total
e. Reduced tolerance for risk

All Respondents
Banks Percent

Not important
Somewhat important
Very important
Total

2

10.0

11

55.0

7

35.0

20

100.0

f. Decreased liquidity in the secondary market for these loans
All Respondents
Banks Percent

Not important

5

25.0

Somewhat important

7

35.0

Very important

8

40.0

20

100.0

Total

g. Increase in defaults by borrowers in public debt markets
All Respondents
Banks Percent

Not important
Somewhat important
Very important
Total

6

30.0

11

55.0

3

15.0

20

100.0

h. Deterioration in your bank's current or expected liquidity position
All Respondents
Banks Percent

Not important

8

42.1

Somewhat important

9

47.4

Very important

2

10.5

19

100.0

Total

B. Possible reasons for easing credit standards or loan terms:
a. Improvement in your bank's current or expected capital position
All Respondents
Banks Percent

Not important

0

--

Somewhat important

0

--

Very important

0

--

Total

0

--

b. More favorable or less uncertain economic outlook
All Respondents
Banks Percent

Not important

0

--

Somewhat important

0

--

Very important

0

--

Total

0

--

c. Improvement in industry-specific problems (please specify industries)
All Respondents
Banks Percent

Not important

0

--

Somewhat important

0

--

Very important

0

--

Total

0

--

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

Not important

0

--

Somewhat important

0

--

Very important

0

--

Total

0

--

e. Increased tolerance for risk
All Respondents
Banks Percent

Not important

0

--

Somewhat important

0

--

Very important

0

--

Total

0

--

f. Increased liquidity in the secondary market for these loans
All Respondents
Banks Percent

Not important

0

--

Somewhat important

0

--

Very important

0

--

Total

0

--

g. Reduction in defaults by borrowers in public debt markets
All Respondents
Banks Percent

Not important

0

--

Somewhat important

0

--

Very important

0

--

Total

0

--

h. Improvement in your bank's current or expected liquidity position
All Respondents
Banks Percent

Not important

0

--

Somewhat important

0

--

Very important

0

--

Total

0

--

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

Substantially stronger

0

0.0

Moderately stronger

4

17.4

About the same

9

39.1

Moderately weaker

8

34.8

Substantially weaker

2

8.7

23

100.0

Total

5. If demand for C&I loans has strengthened or weakened over the past three months (as described in
question 4), how important have been the following possible reasons for the change?
A. If stronger loan demand (answer 1 or 2 to question 4), possible reasons:
a. Customer inventory financing needs increased
All Respondents
Banks Percent

Not important

1

25.0

Somewhat important

2

50.0

Very important

1

25.0

Total

4

100.0

b. Customer accounts receivable financing needs increased
All Respondents
Banks Percent

Not important

1

25.0

Somewhat important

2

50.0

Very important

1

25.0

Total

4

100.0

c. Customer investment in plant or equipment increased
All Respondents
Banks Percent

Not important

4

100.0

Somewhat important

0

0.0

Very important

0

0.0

Total

4

100.0

d. Customer internally generated funds decreased
All Respondents
Banks Percent

Not important

1

25.0

Somewhat important

1

25.0

Very important

2

50.0

Total

4

100.0

e. Customer merger or acquisition financing needs increased
All Respondents
Banks Percent

Not important

4

100.0

Somewhat important

0

0.0

Very important

0

0.0

Total

4

100.0

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

1

25.0

Somewhat important

1

25.0

Very important

2

50.0

Total

4

100.0

B. If weaker loan demand (answer 4 or 5 to question 4), possible reasons:
a. Customer inventory financing needs decreased
All Respondents
Banks Percent

Not important

3

33.3

Somewhat important

6

66.7

Very important

0

0.0

Total

9

100.0

b. Customer accounts receivable financing needs decreased
All Respondents
Banks Percent

Not important

3

33.3

Somewhat important

6

66.7

Very important

0

0.0

Total

9

100.0

c. Customer investment in plant or equipment decreased
All Respondents
Banks Percent

Not important

2

22.2

Somewhat important

4

44.4

Very important

3

33.3

Total

9

100.0

d. Customer internally generated funds increased
All Respondents
Banks Percent

Not important

7

77.8

Somewhat important

1

11.1

Very important

1

11.1

Total

9

100.0

e. Customer merger or acquisition financing needs decreased
All Respondents
Banks Percent

Not important

2

22.2

Somewhat important

2

22.2

Very important

5

55.6

Total

9

100.0

f. Customer borrowing shifted from your bank to other bank or nonbank credit sources because
these other sources became more attractive
All Respondents
Banks Percent

Not important

8

100.0

Somewhat important

0

0.0

Very important

0

0.0

Total

8

100.0

6. At your bank, 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 C&I lines as opposed to the refinancing of existing loans.)
All Respondents
Banks Percent

The number of inquiries has increased substantially

1

4.3

The number of inquiries has increased moderately

3

13.0

The number of inquiries has stayed about the same

8

34.8

The number of inquiries has decreased moderately

8

34.8

The number of inquiries has decreased substantially

3

13.0

23

100.0

Total

Questions 7-8 ask about commercial real estate loans at your bank, including construction and land
development loans and loans secured by nonfarm nonresidential real estate. 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
commercial real estate loans changed?
All Respondents
Banks Percent

Tightened considerably

5

31.3

Tightened somewhat

3

18.8

Remained basically unchanged

8

50.0

Eased somewhat

0

0.0

Eased considerably

0

0.0

16

100.0

Total

8. Apart from normal seasonal variation, how has demand for commercial real estate loans changed over the
past three months?
All Respondents
Banks Percent

Substantially stronger

0

0.0

Moderately stronger

1

6.3

About the same

5

31.3

Moderately weaker

5

31.3

Substantially weaker

5

31.3

16

100.0

Total

Questions 9-10 ask for additional information about commercial real estate lending at your bank. Question
9 focuses on changes in your bank’s policies on commercial real estate loans over the past year. If your
bank’s lending policies have not changed over the past year, please report them as unchanged even if they
are either restrictive or accommodative relative to longer-term norms. If your bank’s policies have
tightened or eased over the past year, please so report them regardless of how they stand relative to
longer-term norms. Question 10 focuses on new extensions of commercial real estate loans at your bank
over the second half of 2008.
9. Over the past year, how has your bank changed the following policies on commercial real estate loans?
(Please assign each policy a number between 1 and 5 using the following scale: 1=tightened considerably,
2=tightened somewhat, 3=remained basically unchanged, 4=eased somewhat, 5=eased considerably.)
a. Maximum loan size
All Respondents
Banks Percent

Tightened considerably

6

37.5

Tightened somewhat

2

12.5

Remained basically unchanged

8

50.0

Eased somewhat

0

0.0

Eased considerably

0

0.0

16

100.0

Total
b. Maximum loan maturity

All Respondents
Banks Percent

Tightened considerably

4

25.0

Tightened somewhat

2

12.5

10

62.5

Eased somewhat

0

0.0

Eased considerably

0

0.0

16

100.0

Remained basically unchanged

Total

c. Spreads of loan rates over your bank’s cost of funds (wider spreads=tightened, narrower
spreads=eased)
All Respondents
Banks Percent

Tightened considerably

8

50.0

Tightened somewhat

4

25.0

Remained basically unchanged

4

25.0

Eased somewhat

0

0.0

Eased considerably

0

0.0

16

100.0

Total
d. Loan-to-value ratios

All Respondents
Banks Percent

Tightened considerably

7

43.8

Tightened somewhat

3

18.8

Remained basically unchanged

6

37.5

Eased somewhat

0

0.0

Eased considerably

0

0.0

16

100.0

Total
e. Requirements for take-out financing

All Respondents
Banks Percent

Tightened considerably

3

18.8

Tightened somewhat

5

31.3

Remained basically unchanged

8

50.0

Eased somewhat

0

0.0

Eased considerably

0

0.0

16

100.0

Total

f. Debt-service coverage ratios
All Respondents
Banks Percent

Tightened considerably

5

31.3

Tightened somewhat

5

31.3

Remained basically unchanged

6

37.5

Eased somewhat

0

0.0

Eased considerably

0

0.0

16

100.0

Total

10. With yield spreads on commercial mortgage-backed securities (CMBS) soaring in the second half of 2008,
gross issuance of CMBS came to a halt. How has the shutdown of this securitization market affected the
volume of new extensions of commercial real estate loans at your bank over the second half of 2008? (Please
check one.)
All
Respondents
Banks Percent

Has led to a considerable increase in the volume of my bank’s commercial real estate
lending

0

0.0

Has led to some increase in the volume of my bank’s commercial real estate lending

1

6.3

Has had little effect on the volume of my bank’s commercial real estate lending

8

50.0

Has led to some reduction in the volume of my bank’s commercial real estate lending

1

6.3

Has led to a considerable reduction in the volume of my bank’s commercial real estate
lending

6

37.5

16

100.0

Total

11. Over the past three months, how has your bank changed the size of credit lines for existing customers with
the following types of accounts? Please consider changes made to line sizes during the life of existing credit
agreements as well as changes made to line sizes upon renewal or renegotiation of existing agreements.
(Please rate the degree of change for each type of account using the following scale: 1=increased
considerably, 2=increased somewhat, 3=remained basically unchanged, 4=decreased somewhat, 5=decreased
considerably.)
a. Business credit card accounts
All Respondents
Banks Percent

Increased considerably

0

0.0

Increased somewhat

0

0.0

Remained basically unchanged

6

100.0

Decreased somewhat

0

0.0

Decreased considerably

0

0.0

Total

6

100.0

b. Commercial and industrial credit lines (excluding business credit card accounts)
All Respondents
Banks Percent

Increased considerably

0

0.0

Increased somewhat

0

0.0

Remained basically unchanged

12

52.2

Decreased somewhat

11

47.8

0

0.0

23

100.0

Decreased considerably
Total
c. Commercial construction lines of credit

All Respondents
Banks Percent

Increased considerably

0

0.0

Increased somewhat

1

8.3

Remained basically unchanged

2

16.7

Decreased somewhat

2

16.7

Decreased considerably

7

58.3

12

100.0

Total
d. Lines of credit for financial firms

All Respondents
Banks Percent

Increased considerably

0

0.0

Increased somewhat

0

0.0

Remained basically unchanged

7

38.9

Decreased somewhat

5

27.8

Decreased considerably

6

33.3

18

100.0

Total

Questions 12-13 ask about the use of interest rate floors on loans to businesses at your bank.
12. During 2008, to what degree did your bank change the frequency with which it includes loan rate floors in
floating rate loan agreements involving loans to businesses?
All Respondents
Banks Percent

Increased considerably

4

17.4

Increased somewhat

9

39.1

Remained unchanged

10

43.5

Decreased somewhat

0

0.0

Decreased considerably

0

0.0

23

100.0

Total

13. What percentage of the total dollar volume of outstanding loans to businesses at your bank has interest
rate floors that are currently binding?
All Respondents
Banks Percent

Less than 5 percent

19

86.4

Between 5 and 15 percent

1

4.5

Between 15 and 25 percent

2

9.1

Between 25 and 50 percent

0

0.0

50 percent or more

0

0.0

22

100.0

Total

1. As of September 30, 2008, the 23 respondents had combined assets of $1.0 trillion, compared to $1.9
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.