The Senior Loan Officer Opinion Survey on Bank Lending Practices

DIVISION OF MONETARY AFFAIRS

For release at 2:00 p.m. ET

TO:

April 30, 2012

HEADS OF RESEARCH AT ALL FEDERAL RESERVE BANKS

Enclosed for distribution to respondents is a national summary of the April 2012
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/econresdata/statisticsdata.htm).

The April 2012 Senior Loan Officer Opinion Survey on Bank Lending Practices
The April 2012 Senior Loan Officer Opinion Survey on Bank Lending Practices addressed changes in the
supply of, and demand for, bank loans to businesses and households over the past three months. This
summary is based on responses from 58 domestic banks and 23 U.S. branches and agencies of foreign
banks.1
Overall, in the April survey, modest net fractions of domestic banks generally reported having eased their
lending standards and having experienced stronger demand over the past three months. 2 Standards on
C&I loans to large and middle-market firms, and to small firms, were about unchanged.3 However,
moderate to large net fractions of domestic banks eased many terms on C&I loans to firms of all sizes,
with most indicating that they had done so in response to more aggressive competition from other banks
or nonbank lenders. Domestic banks also reported an increase in demand from firms of all sizes. In
contrast, a small net fraction of foreign respondents again reported a tightening of their lending standards
on C&I loans and a decrease in demand for such loans. A moderate net fraction of domestic banks
reported having eased standards for commercial real estate (CRE) loans. As has been the case recently,
significant net fractions of domestic banks reported that demand for CRE loans had strengthened. On net,
foreign branches and agencies reported that standards and demand for CRE loans were little changed.
Regarding loans to households, standards on prime residential mortgage loans and home equity lines of
credit (HELOCs) were about unchanged. However, the April survey indicated a moderate strengthening
in demand for prime residential mortgage loans. With respect to consumer loans, moderate net fractions
of banks reported that they had eased standards on most types of these loans over the past three months.
In addition, demand for all types of consumer loans increased somewhat, on net, with demand for auto
loans showing the largest increase.
The survey included two sets of special questions: the first set asked banks about lending to firms with
European exposures, and the second set asked banks about their residential real estate (RRE) lending
policies. In response to the first set, banks reported tightening standards on loans to European banks and
on loans to nonfinancial firms with substantial business in Europe, and domestic respondents reported
increased demand owing to reduced competition from European banks. In response to the second set,
banks reported that they were less likely than in 2006, to varying degrees, to originate mortgages to any
borrowers apart from those with the strongest credit profiles. A moderate net fraction of banks reported
1

Respondent banks received the survey on or after March 27, 2012, and responses were due by April 10,

2012.
2

For questions that ask about lending standards or terms, reported net fractions equal the fraction of banks
that reported having tightened standards ("tightened considerably" or "tightened somewhat") minus the fraction of
banks that reported having eased standards ("eased considerably" or "eased somewhat"). For questions that ask
about demand, reported net fractions equal 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").
3
Large and middle-market firms are generally defined as firms with annual sales of $50 million or more
and small firms as those with annual sales of less than $50 million.

anticipating increasing their exposure to RRE assets over the next year. However, several large banks
indicated that they anticipated reducing their exposures somewhat or substantially, and banks of all sizes
cited a variety of factors that were limiting their current ability to originate or purchase RRE loans. A
moderate share of banks reported that they were actively soliciting applications for the revised Home
Affordable Refinance Program, or “HARP 2.0.”
Business Lending
(Table 1, questions 1-11; Table 2, questions 1-10)
Questions on commercial and industrial lending. Domestic banks reported that their credit standards
on C&I loans to both large and middle-market firms and to small firms were little changed over the first
quarter of 2012. However, for the third consecutive quarter a small net fraction of U.S. branches and
agencies of foreign banks reportedly tightened their standards on C&I loans.
Moderate to large net fractions of domestic banks eased many terms on C&I loans to firms of all sizes. A
large net fraction of respondents indicated that they had decreased spreads on C&I loan rates over the cost
of funds to both large and middle market firms and to small firms. A sizeable net fraction of banks also
indicated a reduction in their use of interest rate floors and reduced costs of credit lines.
Almost all domestic banks that reported having eased standards or terms on C&I loans cited moreaggressive competition from other banks and nonbank lenders as a reason for having done so, with fewer
than half of the banks that reported having eased standards attributing the change to an improved or less
uncertain economic outlook. The few banks that reported having tightened at least one C&I loan term
cited a variety of reasons, including a less favorable or more uncertain economic outlook, a worsening of
industry-specific problems, a reduced tolerance for risk, and increased concerns about legislative,
supervisory, or accounting policies.
Meanwhile, a moderate net fraction of foreign survey respondents increased the costs of credit lines on
C&I loans. The foreign respondents that reported having tightened their standards or terms on C&I loans
cited a variety of reasons, including a less favorable or more uncertain economic outlook, a worsening of
industry-specific problems, a reduced tolerance for risk, deterioration in their current or expected liquidity
position, and increased concerns about legislative, supervisory, or accounting policies.
For the second straight survey, reports from domestic banks of stronger demand for C&I loans
outnumbered reports of weaker demand. Domestic banks also reported that the number of inquiries from
potential business borrowers regarding new or increased credit lines increased, on net. Banks reporting
stronger demand cited shifts in borrowing from other bank and nonbank sources, as well as increases in
customers’ funding needs related to inventories, investment in plant or equipment, accounts receivable,
and mergers and acquisitions as important factors underlying the increase. The small fraction of banks
indicating that demand had decreased cited an increase in their customers’ internally generated funds, as
well as decreases in customers’ funding needs related to inventories, investment in plant or equipment,
and accounts receivable. In contrast, a small net fraction of foreign respondents saw weaker demand for

C&I loans, and those that did most often cited customers’ decreased investment in plant and equipment
and reduced financing needs for merger or acquisition activity.
Special questions on lending to firms with European exposures. A set of special questions in the
April survey asked respondents about lending to banks headquartered in Europe and their affiliates or
subsidiaries (regardless of the location of the affiliates and subsidiaries), as well as to nonfinancial firms
that have operations in the United States and significant exposure to European economies (regardless of
the location of the firms). Most of these questions were also asked in the previous two surveys,
conducted in January 2012 and October 2011.
Moderate net fractions of both domestic and foreign respondents reported having tightened standards on
loans to European banks, and small net fractions stated that they had also tightened standards on loans to
nonfinancial firms that have operations in the United States and significant exposure to European
economies. However, in all cases, the net fractions that reported having tightened were substantially
smaller than in the January survey. Demand for credit was reportedly little changed, on net, from
European banks (or their affiliates and subsidiaries) and from nonfinancial firms with significant
European exposures. About two-thirds of the domestic respondents who reported competing with
European banks for business noted an increase in business as a result of decreased competition from
European banks and their affiliates or subsidiaries, a somewhat larger fraction than in January.
Questions on commercial real estate lending. A modest net fraction of domestic banks reported easing
their standards on CRE loans in the April survey. Foreign survey respondents indicated that their
standards on CRE loans were about unchanged. As has been the case in recent surveys, moderate net
fractions of domestic banks reported that demand for CRE loans had strengthened, on net, over the past
three months. In contrast, the foreign respondents reported that demand for CRE loans had changed little
over that period.
Lending to Households
(Table 1, questions 12-33)
Questions on residential real estate lending. Most banks continued to report little net change in
standards on prime residential mortgage loans, while a modest net fraction of banks indicated that
standards on nontraditional residential mortgage loans had tightened over the previous three months.
Moderate net fractions of banks indicated that demand for both types of loans had strengthened, although
a few large banks reported a weakening in demand. Most banks continued to report little change in their
lending standards for home equity lines of credit, and demand for such loans was also about unchanged.
Special questions on residential real estate lending. A set of special questions asked survey
respondents about residential real estate lending policies at their institutions. Banks were asked to
compare their willingness to originate a GSE-eligible 30-year fixed-rate mortgage loan intended for home
purchase today with their willingness in 2006 for borrowers with FICO (or equivalent) credit risk scores
of 620, 680, and 720, and down payments of 10 or 20 percent (for a total of six categories of borrowers).
A large majority of banks indicated that they were less likely to originate a GSE-eligible mortgage loan to

potential borrowers with a FICO score of 620 and a 10 percent down payment than they were in 2006.
Raising the down payment to 20 percent reduced the fraction of banks less likely to originate such a loan
somewhat. A moderate net fraction of banks were less likely to originate loans to borrowers with a FICO
score of 680, regardless of down payment size. A modest net fraction of banks were less likely to
originate loans to borrowers with a FICO score of 720 and a 10 percent down payment, although survey
respondents indicated that they were about as likely to originate loans now as they were in 2006 if such
borrowers had a down payment of 20 percent. Most banks cited borrowers having higher costs for, or
greater difficulty in obtaining, mortgage insurance coverage as an important factor contributing to the
reduced likelihood of originating GSE-eligible mortgage loans. About as many respondents noted the
higher risk of putbacks of delinquent mortgages by the GSEs as an important factor, and that factor was
listed as the most important one by the largest number of banks. Similar fractions of respondents pointed
to less favorable or more uncertain outlooks for house prices or for the economy more broadly as factors.
A majority of respondents reported as at least somewhat important factors greater concern about their
bank’s exposure to residential real estate loans; increased concerns about effects of legislative changes,
supervisory actions, or accounting standards; higher servicing costs if mortgages were to become
delinquent; the prevailing spread of mortgage rates over cost of funds being insufficient to compensate for
risks; and borrowers having higher costs of greater difficulty in obtaining simultaneous second liens.
A moderate net fraction of banks reported that they anticipated increasing their exposure to RRE assets
over the next year (such as RRE loans or government backed or other mortgage-backed securities).
However, several large banks indicated that they anticipated reducing their RRE holdings either
somewhat or substantially.
Banks were also asked to indicate what factors were currently impeding their ability to originate or
purchase additional RRE loans. Most survey respondents cited periods during which the high volume of
RRE loan applications exceeded their application processing capacity, difficulty in completing timely and
accurate underwriting or in completing timely and accurate appraisals or in hiring sufficient servicing or
loan processing staff as important factors.
Several special questions asked about banks’ participation in HARP 2.0. About one-third of banks
reported that they were actively soliciting HARP 2.0 applications and were satisfying most demand as it
comes in. In contrast, nearly half indicated that they had very little participation in HARP 2.0. A
majority of those that were participating reported that they anticipated that 60 percent or more of such
applications would be approved and successfully completed. Many respondents reported the risk that the
GSEs might put back the mortgage, difficulty in obtaining transfers of existing private mortgage
insurance coverage, difficulty in identifying junior lien holders, or difficulty in obtaining resubordination
of a known second lien as factors reducing their willingness or ability to offer such loans. A moderate
fraction of banks reported that they were actively soliciting applications or satisfying most demand as it
came in for refinancing underwater loans outside of HARP 2.0 for borrowers who have been current on
their existing mortgage for at least 12 months.
Questions on consumer lending. As in the previous four surveys, small to moderate net fractions of
domestic banks reported having eased standards on credit card, auto, and other consumer loans. Moderate

net fractions of banks reported having narrowed spreads on auto loans. However, other terms across the
categories of consumer loans were little changed on net. Demand for consumer loans reportedly
continued to increase, especially for auto loans.

This document was prepared by John Driscoll with the assistance of Sam Haltenhof, 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

Jan.
survey

100
80

Loans to large and middle-market firms
Loans to small firms

60
40
20
0
-20
-40

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

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

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

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

2010

2012

Measures of Supply and Demand for Commercial Real Estate Loans

Net Percentage of Domestic Respondents Tightening Standards for Commercial Real Estate Loans
Percent

Jan.
survey

100

80

60

40

20

0

-20

-40

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

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

40

20

0

-20

-40

-60

-80

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

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
Subprime

-20
1990

1992

1994

1996

1998

2000

2002

2004

2006

2007

2009

-20

2011

Note: For data starting in 2007:Q2, changes in standards for prime, nontraditional, and subprime mortgage loans are reported separately.
Series are not reported when the number of respondents is three or fewer.

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

Percent

80

80
Prime
Nontraditional
Subprime

All residential

60

60

40

40

20

20

0

0

-20

-20

-40

-40

-60

-60

-80

-80

1990

1992

1994

1996

1998

2000

2002

2004

2006

2007

2009

2011

Note: For data starting in 2007:Q2, changes in demand for prime, nontraditional, and subprime mortgage loans are reported separately.
Series are not reported when the number of respondents is three or fewer.

Measures of Supply and Demand for Consumer Loans

Net Percentage of Domestic Respondents Tightening Standards for Consumer Loans
Percent

Percent

100

100

Credit card loans
Other consumer loans

80

Credit card loans
Auto loans
Other consumer loans

60

80
60

40

40

20

20

0

0

-20

-20

-40

-40

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

Q2
2011

2011

Q3
2011

Q4
2011

Q1
2012

Q2
2012

Note: For data starting in 2011:Q2, changes in standards for auto loans and consumer loans excluding credit card and auto loans are
reported separately. In 2011:Q2 only, new and used auto loans are reported separately and equally weighted to calculate the auto loans series.

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

2010

2012

Net Percentage of Domestic Respondents Reporting Stronger Demand for Consumer Loans
Percent

Percent

100

100

All consumer loans

80

Credit card loans
Auto loans
Other consumer loans

60

80
60

40

40

20

20

0

0

-20

-20

-40

-40

-60

-60

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

Q2
2011

Q3
2011

Q4
2011

Q1
2012

Q2
2012

Note: For data starting in 2011:Q2, changes in demand for credit card loans, auto loans, and consumer loans excluding credit card and
auto loans are reported separately.

Table 1

1

(Status of policy as of April 2012)
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

0

0.0

0

0.0

0

0.0

Tightened somewhat

0

0.0

0

0.0

0

0.0

54

93.1

32

88.9

22

100.0

Eased somewhat

4

6.9

4

11.1

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

58

100.0

36

100.0

22

100.0

Remained basically unchanged

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

0

0.0

0

0.0

0

0.0

Tightened somewhat

0

0.0

0

0.0

0

0.0

54

98.2

32

97.0

22

100.0

Eased somewhat

1

1.8

1

3.0

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

55

100.0

33

100.0

22

100.0

Remained basically unchanged

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

0

0.0

0

0.0

0

0.0

Tightened somewhat

2

3.5

2

5.7

0

0.0

Remained basically unchanged

45

78.9

26

74.3

19

86.4

Eased somewhat

10

17.5

7

20.0

3

13.6

0

0.0

0

0.0

0

0.0

57

100.0

35

100.0

22

100.0

Eased considerably
Total

b. Maximum maturity of loans or credit lines
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

0

0.0

0

0.0

0

0.0

49

84.5

28

77.8

21

95.5

Eased somewhat

9

15.5

8

22.2

1

4.5

Eased considerably

0

0.0

0

0.0

0

0.0

58

100.0

36

100.0

22

100.0

Remained basically unchanged

Total
c. Costs of credit lines

All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

0

0.0

0

0.0

0

0.0

Remained basically unchanged

44

75.9

29

80.6

15

68.2

Eased somewhat

13

22.4

6

16.7

7

31.8

1

1.7

1

2.8

0

0.0

58

100.0

36

100.0

22

100.0

Eased considerably
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

0

0.0

0

0.0

0

0.0

Tightened somewhat

0

0.0

0

0.0

0

0.0

Remained basically unchanged

23

39.7

13

36.1

10

45.5

Eased somewhat

34

58.6

22

61.1

12

54.5

1

1.7

1

2.8

0

0.0

58

100.0

36

100.0

22

100.0

Eased considerably
Total

e. Premiums charged on riskier loans
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

2

3.4

0

0.0

2

9.1

49

84.5

30

83.3

19

86.4

Eased somewhat

7

12.1

6

16.7

1

4.5

Eased considerably

0

0.0

0

0.0

0

0.0

58

100.0

36

100.0

22

100.0

Remained basically unchanged

Total
f. Loan covenants

All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

1

1.7

1

2.8

0

0.0

48

82.8

28

77.8

20

90.9

Eased somewhat

9

15.5

7

19.4

2

9.1

Eased considerably

0

0.0

0

0.0

0

0.0

58

100.0

36

100.0

22

100.0

Remained basically unchanged

Total
g. Collateralization requirements

All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

0

0.0

0

0.0

0

0.0

55

94.8

35

97.2

20

90.9

Eased somewhat

3

5.2

1

2.8

2

9.1

Eased considerably

0

0.0

0

0.0

0

0.0

58

100.0

36

100.0

22

100.0

Remained basically unchanged

Total

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

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

0

0.0

0

0.0

0

0.0

Remained basically unchanged

32

55.2

19

52.8

13

59.1

Eased somewhat

22

37.9

15

41.7

7

31.8

4

6.9

2

5.6

2

9.1

58

100.0

36

100.0

22

100.0

Eased considerably
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

0

0.0

0

0.0

0

0.0

Tightened somewhat

0

0.0

0

0.0

0

0.0

51

92.7

31

93.9

20

90.9

Eased somewhat

4

7.3

2

6.1

2

9.1

Eased considerably

0

0.0

0

0.0

0

0.0

55

100.0

33

100.0

22

100.0

Remained basically unchanged

Total

b. Maximum maturity of loans or credit lines
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

0

0.0

0

0.0

0

0.0

48

87.3

28

84.8

20

90.9

Eased somewhat

7

12.7

5

15.2

2

9.1

Eased considerably

0

0.0

0

0.0

0

0.0

55

100.0

33

100.0

22

100.0

Remained basically unchanged

Total

c. Costs of credit lines
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

0

0.0

0

0.0

0

0.0

46

83.6

30

90.9

16

72.7

Eased somewhat

9

16.4

3

9.1

6

27.3

Eased considerably

0

0.0

0

0.0

0

0.0

55

100.0

33

100.0

22

100.0

Remained basically unchanged

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

0

0.0

0

0.0

0

0.0

Tightened somewhat

0

0.0

0

0.0

0

0.0

Remained basically unchanged

27

49.1

17

51.5

10

45.5

Eased somewhat

28

50.9

16

48.5

12

54.5

0

0.0

0

0.0

0

0.0

55

100.0

33

100.0

22

100.0

Eased considerably
Total
e. Premiums charged on riskier loans

All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

2

3.6

0

0.0

2

9.1

48

87.3

29

87.9

19

86.4

Eased somewhat

4

7.3

3

9.1

1

4.5

Eased considerably

1

1.8

1

3.0

0

0.0

55

100.0

33

100.0

22

100.0

Remained basically unchanged

Total

f. Loan covenants
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

1

1.8

1

3.0

0

0.0

48

87.3

29

87.9

19

86.4

Eased somewhat

6

10.9

3

9.1

3

13.6

Eased considerably

0

0.0

0

0.0

0

0.0

55

100.0

33

100.0

22

100.0

Remained basically unchanged

Total
g. Collateralization requirements

All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

0

0.0

0

0.0

0

0.0

53

96.4

32

97.0

21

95.5

Eased somewhat

2

3.6

1

3.0

1

4.5

Eased considerably

0

0.0

0

0.0

0

0.0

55

100.0

33

100.0

22

100.0

Remained basically unchanged

Total

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

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

0

0.0

0

0.0

0

0.0

Remained basically unchanged

33

62.3

20

64.5

13

59.1

Eased somewhat

17

32.1

9

29.0

8

36.4

3

5.7

2

6.5

1

4.5

53

100.0

31

100.0

22

100.0

Eased considerably
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

5

83.3

4

100.0

1

50.0

Somewhat important

0

0.0

0

0.0

0

0.0

Very important

1

16.7

0

0.0

1

50.0

Total

6

100.0

4

100.0

2

100.0

b. Less favorable or more uncertain economic outlook
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

2

33.3

2

50.0

0

0.0

Somewhat important

4

66.7

2

50.0

2

100.0

Very important

0

0.0

0

0.0

0

0.0

Total

6

100.0

4

100.0

2

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

3

50.0

3

75.0

0

0.0

Somewhat important

2

33.3

1

25.0

1

50.0

Very important

1

16.7

0

0.0

1

50.0

Total

6

100.0

4

100.0

2

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

5

83.3

3

75.0

2

100.0

Somewhat important

1

16.7

1

25.0

0

0.0

Very important

0

0.0

0

0.0

0

0.0

Total

6

100.0

4

100.0

2

100.0

e. Reduced tolerance for risk
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

3

50.0

3

75.0

0

0.0

Somewhat important

1

16.7

1

25.0

0

0.0

Very important

2

33.3

0

0.0

2

100.0

Total

6

100.0

4

100.0

2

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

5

83.3

4

100.0

1

50.0

Somewhat important

0

0.0

0

0.0

0

0.0

Very important

1

16.7

0

0.0

1

50.0

Total

6

100.0

4

100.0

2

100.0

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

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

5

83.3

4

100.0

1

50.0

Somewhat important

0

0.0

0

0.0

0

0.0

Very important

1

16.7

0

0.0

1

50.0

Total

6

100.0

4

100.0

2

100.0

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

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

3

50.0

2

50.0

1

50.0

Somewhat important

2

33.3

2

50.0

0

0.0

Very important

1

16.7

0

0.0

1

50.0

Total

6

100.0

4

100.0

2

100.0

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

33

94.3

23

100.0

10

83.3

Somewhat important

1

2.9

0

0.0

1

8.3

Very important

1

2.9

0

0.0

1

8.3

35

100.0

23

100.0

12

100.0

Total

b. More favorable or less uncertain economic outlook
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

20

57.1

13

56.5

7

58.3

Somewhat important

14

40.0

10

43.5

4

33.3

1

2.9

0

0.0

1

8.3

35

100.0

23

100.0

12

100.0

Very important
Total

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

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

30

85.7

21

91.3

9

75.0

Somewhat important

3

8.6

1

4.3

2

16.7

Very important

2

5.7

1

4.3

1

8.3

35

100.0

23

100.0

12

100.0

Total

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

1

2.9

1

4.3

0

0.0

Somewhat important

16

45.7

9

39.1

7

58.3

Very important

18

51.4

13

56.5

5

41.7

Total

35

100.0

23

100.0

12

100.0

e. Increased tolerance for risk
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

27

77.1

17

73.9

10

83.3

Somewhat important

7

20.0

5

21.7

2

16.7

Very important

1

2.9

1

4.3

0

0.0

35

100.0

23

100.0

12

100.0

Total

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

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

28

80.0

18

78.3

10

83.3

Somewhat important

6

17.1

5

21.7

1

8.3

Very important

1

2.9

0

0.0

1

8.3

35

100.0

23

100.0

12

100.0

Total

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

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

31

88.6

22

95.7

9

75.0

Somewhat important

4

11.4

1

4.3

3

25.0

Very important

0

0.0

0

0.0

0

0.0

35

100.0

23

100.0

12

100.0

Total

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

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

33

94.3

22

95.7

11

91.7

Somewhat important

2

5.7

1

4.3

1

8.3

Very important

0

0.0

0

0.0

0

0.0

35

100.0

23

100.0

12

100.0

Total

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

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Substantially stronger

0

0.0

0

0.0

0

0.0

Moderately stronger

25

43.1

13

36.1

12

54.5

About the same

26

44.8

17

47.2

9

40.9

Moderately weaker

7

12.1

6

16.7

1

4.5

Substantially weaker

0

0.0

0

0.0

0

0.0

58

100.0

36

100.0

22

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

0

0.0

0

0.0

0

0.0

Moderately stronger

17

30.9

5

15.2

12

54.5

About the same

33

60.0

24

72.7

9

40.9

Moderately weaker

5

9.1

4

12.1

1

4.5

Substantially weaker

0

0.0

0

0.0

0

0.0

55

100.0

33

100.0

22

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

10

37.0

5

33.3

5

41.7

Somewhat important

16

59.3

10

66.7

6

50.0

1

3.7

0

0.0

1

8.3

27

100.0

15

100.0

12

100.0

Very important
Total

b. Customer accounts receivable financing needs increased
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important
Somewhat important
Very important
Total

9

33.3

6

40.0

3

25.0

17

63.0

9

60.0

8

66.7

1

3.7

0

0.0

1

8.3

27

100.0

15

100.0

12

100.0

c. Customer investment in plant or equipment increased
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important
Somewhat important
Very important
Total

7

25.9

6

40.0

1

8.3

19

70.4

9

60.0

10

83.3

1

3.7

0

0.0

1

8.3

27

100.0

15

100.0

12

100.0

d. Customer internally generated funds decreased
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

26

96.3

14

93.3

12

100.0

Somewhat important

1

3.7

1

6.7

0

0.0

Very important

0

0.0

0

0.0

0

0.0

27

100.0

15

100.0

12

100.0

Total

e. Customer merger or acquisition financing needs increased
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

12

44.4

4

26.7

8

66.7

Somewhat important

13

48.1

9

60.0

4

33.3

2

7.4

2

13.3

0

0.0

27

100.0

15

100.0

12

100.0

Very important
Total

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
Somewhat important
Very important
Total

9

33.3

4

26.7

5

41.7

13

48.1

7

46.7

6

50.0

5

18.5

4

26.7

1

8.3

27

100.0

15

100.0

12

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

3

42.9

3

50.0

0

0.0

Somewhat important

3

42.9

2

33.3

1

100.0

Very important

1

14.3

1

16.7

0

0.0

Total

7

100.0

6

100.0

1

100.0

b. Customer accounts receivable financing needs decreased
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

3

42.9

3

50.0

0

0.0

Somewhat important

3

42.9

2

33.3

1

100.0

Very important

1

14.3

1

16.7

0

0.0

Total

7

100.0

6

100.0

1

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

28.6

2

33.3

0

0.0

Somewhat important

2

28.6

1

16.7

1

100.0

Very important

3

42.9

3

50.0

0

0.0

Total

7

100.0

6

100.0

1

100.0

d. Customer internally generated funds increased
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

2

28.6

2

33.3

0

0.0

Somewhat important

5

71.4

4

66.7

1

100.0

Very important

0

0.0

0

0.0

0

0.0

Total

7

100.0

6

100.0

1

100.0

e. Customer merger or acquisition financing needs decreased
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

4

57.1

3

50.0

1

100.0

Somewhat important

1

14.3

1

16.7

0

0.0

Very important

2

28.6

2

33.3

0

0.0

Total

7

100.0

6

100.0

1

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

4

57.1

4

66.7

0

0.0

Somewhat important

2

28.6

1

16.7

1

100.0

Very important

1

14.3

1

16.7

0

0.0

Total

7

100.0

6

100.0

1

100.0

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

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

The number of inquiries has increased substantially

0

0.0

0

0.0

0

0.0

The number of inquiries has increased moderately

23

39.7

13

36.1

10

45.5

The number of inquiries has stayed about the same

30

51.7

18

50.0

12

54.5

The number of inquiries has decreased moderately

5

8.6

5

13.9

0

0.0

The number of inquiries has decreased substantially

0

0.0

0

0.0

0

0.0

58

100.0

36

100.0

22

100.0

Total

The ongoing fiscal and financial strains in Europe may have affected lending conditions for nonfinancial
companies that have operations in the United States and significant exposure to European economies, as
well as banks headquartered in Europe and their affiliates and subsidiaries. Question 7 deals with changes
in your bank's lending policies toward both types of firms over the past three months. In addition,
developments in Europe may have affected these firms' demand for credit from U.S. banks. Question 8 deal
with such changes in demand. Question 9 asks about increases in business as a result of change in
competition from European banks and their affiliates and subsidiaries.
In answering these questions, please consider your bank's C&I lending to all nonfinancial companies with
operations in the United States and significant exposure to European economies (for example, please
consider your bank's C&I loans both to operations of European firms that are located in the United States
and to domestic firms that conduct a significant portion of their business with European firms). With regard
to banks, please consider banks headquartered in Europe and affiliates and subsidiaries of European banks
regardless of the location of those affiliates and subsidiaries.
7. Over the past three months, how have your bank's credit standards and terms for approving applications for
loans or credit lines—other than those to be used to finance mergers and acquisitions—for the following types
of firms changed?
A. Nonfinancial companies that have operations in the United States and significant exposure to
European economies (as described in the introduction to these special questions)
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

4

12.5

4

14.8

0

0.0

28

87.5

23

85.2

5

100.0

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

27

100.0

5

100.0

Remained basically unchanged

Total

For this question, 24 respondents answered “My bank does not make loans or extend credit lines
to nonfinancial companies that have operations in the United States and significant exposure to
European economies.”

B. Banks headquartered in Europe and their affiliates and subsidiaries (as described in the introduction
to these special questions)
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

2

8.7

2

9.1

0

0.0

Tightened somewhat

6

26.1

6

27.3

0

0.0

14

60.9

13

59.1

1

100.0

Eased somewhat

1

4.3

1

4.5

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

23

100.0

22

100.0

1

100.0

Remained basically unchanged

Total

For this question, 32 respondents answered “My bank does not make loans or extend credit lines
to banks headquartered in Europe or their affiliates or subsidiaries.”
8. Over the past three months and apart from normal seasonal variation, how has demand for loans at your
bank from the following types of firms changed? (Please consider only funds actually disbursed as opposed to
requests for new or increased lines of credit.)
A. Nonfinancial companies with operations in the United States and significant exposures to European
economies (as described in the introduction to these special questions)
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Substantially stronger

0

0.0

0

0.0

0

0.0

Moderately stronger

2

6.3

2

7.4

0

0.0

29

90.6

24

88.9

5

100.0

Moderately weaker

0

0.0

0

0.0

0

0.0

Substantially weaker

1

3.1

1

3.7

0

0.0

32

100.0

27

100.0

5

100.0

About the same

Total

For this question, 24 respondents answered “My bank does not make loans or extend credit lines
to nonfinancial companies that have operations in the United States and significant exposure to
European economies.”

B. Banks headquartered in Europe and their affiliates and subsidiaries (as described in the introduction
to these special questions)
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Substantially stronger

0

0.0

0

0.0

0

0.0

Moderately stronger

2

8.7

2

9.1

0

0.0

18

78.3

17

77.3

1

100.0

Moderately weaker

3

13.0

3

13.6

0

0.0

Substantially weaker

0

0.0

0

0.0

0

0.0

23

100.0

22

100.0

1

100.0

About the same

Total

For this question, 32 respondents answered “My bank does not make loans or extend credit lines
to banks headquartered in Europe or their affiliates or subsidiaries.”
9. Over the past three months, to what extent has your bank experienced an increase in business, with either
foreign or domestic customers, as a result of decreased competition from European banks and their affiliates
and subsidiaries?
All
Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

My bank has not experienced a decrease in
competition from European banks

3

5.5

3

8.6

0

0.0

24

43.6

6

17.1

18

90.0

8

14.5

7

20.0

1

5.0

Such decreased competition has increased business to
some extent

20

36.4

19

54.3

1

5.0

Such decreased competition has increased business to
a considerable extent

0

0.0

0

0.0

0

0.0

55

100.0

35

100.0

20

100.0

My bank does not compete with European banks for
our business
Such decreased competition has not appreciably
increased business

Total

Questions 10-11 ask about commercial real estate (CRE) loans at your bank, including construction and
land development loans and loans secured by nonfarm nonresidential real estate. Question 10 deals with
changes in your bank's standards over the past three months. Question 11 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.
10. Over the past three months, how have your bank's credit standards for approving applications for CRE
loans changed?
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

0

0.0

0

0.0

0

0.0

50

86.2

31

86.1

19

86.4

Eased somewhat

8

13.8

5

13.9

3

13.6

Eased considerably

0

0.0

0

0.0

0

0.0

58

100.0

36

100.0

22

100.0

Remained basically unchanged

Total

11. Apart from normal seasonal variation, how has demand for CRE loans changed over the past three
months?
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Substantially stronger

1

1.7

1

2.8

0

0.0

Moderately stronger

25

43.1

16

44.4

9

40.9

About the same

29

50.0

18

50.0

11

50.0

Moderately weaker

3

5.2

1

2.8

2

9.1

Substantially weaker

0

0.0

0

0.0

0

0.0

58

100.0

36

100.0

22

100.0

Total

Questions 12-13 ask about three categories of residential mortgage loans at your bank—prime residential
mortgages, nontraditional residential mortgages, and subprime residential mortgages. Question 12 deals
with changes in your bank's credit standards for loans in each of these categories over the past three
months. Question 13 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.

12. 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

0

0.0

0

0.0

0

0.0

Tightened somewhat

3

5.6

2

6.3

1

4.5

49

90.7

30

93.8

19

86.4

Eased somewhat

2

3.7

0

0.0

2

9.1

Eased considerably

0

0.0

0

0.0

0

0.0

54

100.0

32

100.0

22

100.0

Remained basically unchanged

Total

For this question, 1 respondent answered “My bank does not originate prime residential
mortgages.”
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

0

0.0

0

0.0

0

0.0

Tightened somewhat

3

11.5

3

15.8

0

0.0

23

88.5

16

84.2

7

100.0

Eased somewhat

0

0.0

0

0.0

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

26

100.0

19

100.0

7

100.0

Remained basically unchanged

Total

For this question, 29 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:
Responses are not reported when the number of respondents is 3 or fewer.

13. 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

3.8

1

3.1

1

4.8

Moderately stronger

18

34.0

8

25.0

10

47.6

About the same

29

54.7

19

59.4

10

47.6

Moderately weaker

4

7.5

4

12.5

0

0.0

Substantially weaker

0

0.0

0

0.0

0

0.0

53

100.0

32

100.0

21

100.0

Total

For this question, 2 respondents answered “My bank does not originate prime residential
mortgages.”
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

8

30.8

3

15.8

5

71.4

16

61.5

14

73.7

2

28.6

Moderately weaker

2

7.7

2

10.5

0

0.0

Substantially weaker

0

0.0

0

0.0

0

0.0

26

100.0

19

100.0

7

100.0

About the same

Total

For this question, 29 respondents answered “My bank does not originate nontraditional
residential mortgages.”
C. Demand for mortgages that your bank categorizes as subprime residential mortgages was:
Responses are not reported when the number of respondents is 3 or fewer.

Questions 14-15 ask about revolving home equity lines of credit at your bank. Question 14 deals with
changes in your bank's credit standards over the past three months. Question 15 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.
14. Over the past three months, how have your bank's credit standards for approving applications for
revolving home equity lines of credit changed?
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

3

5.4

2

5.9

1

4.5

51

91.1

31

91.2

20

90.9

Eased somewhat

2

3.6

1

2.9

1

4.5

Eased considerably

0

0.0

0

0.0

0

0.0

56

100.0

34

100.0

22

100.0

Remained basically unchanged

Total

15. Apart from normal seasonal variation, how has demand for revolving home equity lines of credit changed
over the past three months? (Please consider only funds actually disbursed as opposed to requests for new or
increased lines of credit.)
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Substantially stronger

0

0.0

0

0.0

0

0.0

Moderately stronger

7

12.5

3

8.8

4

18.2

40

71.4

23

67.6

17

77.3

Moderately weaker

9

16.1

8

23.5

1

4.5

Substantially weaker

0

0.0

0

0.0

0

0.0

56

100.0

34

100.0

22

100.0

About the same

Total

The ongoing weakness in the housing sector continues to weigh on economic activity. The following set of
special questions asks about residential mortgage lending policies at your institution. Questions 16-17 ask
you to compare your current policies in originating residential mortgage loans for borrowers with different
characteristics to those policies that prevailed in 2006. Question 18 asks about how you anticipate holdings
of loans and other assets secured by residential real estate will change at your institution over the next
year. Question 19 asks about factors that may be affecting your bank's ability to originate or purchase
residential real estate loans. Questions 20-23 ask about the revised Home Affordable Refinance Program
(``HARP 2.0'') and refinancing of underwater mortgages outside of HARP 2.0. If your bank does not
originate residential mortgage loans, please skip these questions.
16. For each of the following questions, indicate how much more or less likely it is, compared with 2006, that
your bank would originate a GSE-eligible 30-year fixed-rate mortgage loan intended for home purchase to
borrowers whose loan application has the stated FICO score (or equivalent) and down payment. In each case,
assume that all other characteristics of the borrower and the property are typical for loan applications that are
eligible for sale to the GSEs with that FICO score (or equivalent) and down payment. (Please assign each
borrower category a number between 1 and 5 using the following scale: 1=much less likely, 2=somewhat less
likely 3=about the same, 4=somewhat more likely, 5=much more likely.)
a. A borrower with a FICO score (or equivalent) of 620 and a down payment of 10 percent
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Much less likely

31

59.6

18

56.3

13

65.0

Somewhat less likely

12

23.1

8

25.0

4

20.0

About the same

9

17.3

6

18.8

3

15.0

Somewhat more likely

0

0.0

0

0.0

0

0.0

Much more likely

0

0.0

0

0.0

0

0.0

52

100.0

32

100.0

20

100.0

Total

b. A borrower with a FICO score (or equivalent) of 680 and a down payment of 10 percent
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Much less likely

11

21.2

6

18.8

5

25.0

Somewhat less likely

15

28.8

9

28.1

6

30.0

About the same

25

48.1

17

53.1

8

40.0

Somewhat more likely

0

0.0

0

0.0

0

0.0

Much more likely

1

1.9

0

0.0

1

5.0

52

100.0

32

100.0

20

100.0

Total

c. A borrower with a FICO score (or equivalent) of 720 and a down payment of 10 percent
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Much less likely

4

7.7

2

6.3

2

10.0

Somewhat less likely

8

15.4

7

21.9

1

5.0

37

71.2

21

65.6

16

80.0

Somewhat more likely

2

3.8

2

6.3

0

0.0

Much more likely

1

1.9

0

0.0

1

5.0

52

100.0

32

100.0

20

100.0

About the same

Total

d. A borrower with a FICO score (or equivalent) of 620 and a down payment of 20 percent
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Much less likely

20

38.5

11

34.4

9

45.0

Somewhat less likely

17

32.7

10

31.3

7

35.0

About the same

15

28.8

11

34.4

4

20.0

Somewhat more likely

0

0.0

0

0.0

0

0.0

Much more likely

0

0.0

0

0.0

0

0.0

52

100.0

32

100.0

20

100.0

Total

e. A borrower with a FICO score (or equivalent) of 680 and a down payment of 20 percent
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Much less likely

4

7.7

2

6.3

2

10.0

Somewhat less likely

11

21.2

7

21.9

4

20.0

About the same

33

63.5

20

62.5

13

65.0

Somewhat more likely

3

5.8

3

9.4

0

0.0

Much more likely

1

1.9

0

0.0

1

5.0

52

100.0

32

100.0

20

100.0

Total

f. A borrower with a FICO score (or equivalent) of 720 and a down payment of 20 percent
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Much less likely

0

0.0

0

0.0

0

0.0

Somewhat less likely

5

9.6

3

9.4

2

10.0

41

78.8

24

75.0

17

85.0

Somewhat more likely

1

1.9

1

3.1

0

0.0

Much more likely

5

9.6

4

12.5

1

5.0

52

100.0

32

100.0

20

100.0

About the same

Total

17. If you answered ``much less likely'' or ``somewhat less likely'' (answers 1 or 2) to any of the borrower
categories in question 16, please indicate how important the following factors were for your answers. (Please
assign each possible factor a number between 1 and 4 using the following scale: 1= not important,
2=somewhat important, 3=very important, 4=the most important.)
a. Higher servicing cost if mortgage were to become delinquent
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

17

38.6

7

25.9

10

58.8

Somewhat important

19

43.2

17

63.0

2

11.8

Very important

8

18.2

3

11.1

5

29.4

The most important

0

0.0

0

0.0

0

0.0

44

100.0

27

100.0

17

100.0

Total

b. Borrowers have higher costs or greater difficulty in obtaining mortgage insurance
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

7

15.9

3

11.1

4

23.5

Somewhat important

16

36.4

12

44.4

4

23.5

Very important

13

29.5

8

29.6

5

29.4

8

18.2

4

14.8

4

23.5

44

100.0

27

100.0

17

100.0

The most important
Total

c. Borrowers have higher costs or greater difficulty in obtaining simultaneous second liens from
your bank or other lenders
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

22

50.0

16

59.3

6

35.3

Somewhat important

13

29.5

8

29.6

5

29.4

Very important

6

13.6

2

7.4

4

23.5

The most important

3

6.8

1

3.7

2

11.8

44

100.0

27

100.0

17

100.0

Total

d. Higher risk of put-back of delinquent mortgages by the GSEs
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

8

18.2

5

18.5

3

17.6

Somewhat important

10

22.7

6

22.2

4

23.5

Very important

15

34.1

9

33.3

6

35.3

The most important

11

25.0

7

25.9

4

23.5

Total

44

100.0

27

100.0

17

100.0

e. Basel III treatment of mortgage servicing rights makes the business less attractive
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

27

61.4

15

55.6

12

70.6

Somewhat important

12

27.3

9

33.3

3

17.6

Very important

3

6.8

1

3.7

2

11.8

The most important

2

4.5

2

7.4

0

0.0

44

100.0

27

100.0

17

100.0

Total

f. Increased concerns about other effects of legislative changes, supervisory actions, or changes
in accounting standards
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

13

29.5

7

25.9

6

35.3

Somewhat important

16

36.4

9

33.3

7

41.2

Very important

14

31.8

10

37.0

4

23.5

1

2.3

1

3.7

0

0.0

44

100.0

27

100.0

17

100.0

The most important
Total

g. Greater concern about my bank's exposure to residential real estate loans
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

13

29.5

8

29.6

5

29.4

Somewhat important

17

38.6

10

37.0

7

41.2

Very important

12

27.3

7

25.9

5

29.4

2

4.5

2

7.4

0

0.0

44

100.0

27

100.0

17

100.0

The most important
Total

h. A less favorable or more uncertain outlook for house prices
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

7

15.9

3

11.1

4

23.5

Somewhat important

17

38.6

10

37.0

7

41.2

Very important

16

36.4

11

40.7

5

29.4

4

9.1

3

11.1

1

5.9

44

100.0

27

100.0

17

100.0

The most important
Total

i. A less favorable or more uncertain economic outlook
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

8

18.2

5

18.5

3

17.6

27

61.4

16

59.3

11

64.7

Very important

8

18.2

6

22.2

2

11.8

The most important

1

2.3

0

0.0

1

5.9

44

100.0

27

100.0

17

100.0

Somewhat important

Total

j. The prevailing spread of mortgage rates over cost of funds is insufficient to compensate for
risks
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

21

48.8

12

46.2

9

52.9

Somewhat important

13

30.2

8

30.8

5

29.4

Very important

7

16.3

4

15.4

3

17.6

The most important

2

4.7

2

7.7

0

0.0

43

100.0

26

100.0

17

100.0

Total

18. How do you anticipate your bank will change its holdings of residential real estate assets (such as
residential real estate loans or government backed or other mortgage-backed securities) over the next year?
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

My bank will reduce its holdings substantially

2

3.6

2

6.1

0

0.0

My bank will reduce its holdings somewhat

5

9.1

5

15.2

0

0.0

My bank will keep its holdings about the same

22

40.0

10

30.3

12

54.5

My bank will increase its holdings somewhat

24

43.6

15

45.5

9

40.9

2

3.6

1

3.0

1

4.5

55

100.0

33

100.0

22

100.0

My bank will increase its holdings substantially
Total

19. Indicate to what extent each of the following factors is currently affecting your bank's ability to originate
or purchase additional residential real estate loans. (Please assign each factor a number between 1 and 4 using
the following scale: 1= not at all a factor, 2= somewhat a factor, 3=very much a factor, 4=the most important
factor.)
a. Periods of high volume of loan applications exceed application processing capacity
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not at all a factor

16

30.2

8

24.2

8

40.0

Somewhat a factor

21

39.6

13

39.4

8

40.0

Very much a factor

11

20.8

9

27.3

2

10.0

5

9.4

3

9.1

2

10.0

53

100.0

33

100.0

20

100.0

The most important factor
Total

b. Difficulty in completing timely and accurate appraisals
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not at all a factor

23

43.4

15

45.5

8

40.0

Somewhat a factor

18

34.0

9

27.3

9

45.0

Very much a factor

12

22.6

9

27.3

3

15.0

0

0.0

0

0.0

0

0.0

53

100.0

33

100.0

20

100.0

The most important factor
Total

c. Difficulty in completing timely and accurate underwriting
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not at all a factor

23

43.4

11

33.3

12

60.0

Somewhat a factor

19

35.8

14

42.4

5

25.0

Very much a factor

10

18.9

8

24.2

2

10.0

1

1.9

0

0.0

1

5.0

53

100.0

33

100.0

20

100.0

The most important factor
Total

d. Difficulty in securing servicing and loan processing help from outside companies
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not at all a factor

42

79.2

24

72.7

18

90.0

Somewhat a factor

10

18.9

8

24.2

2

10.0

Very much a factor

1

1.9

1

3.0

0

0.0

The most important factor

0

0.0

0

0.0

0

0.0

53

100.0

33

100.0

20

100.0

Total

e. Difficulty in hiring sufficient servicing or loan processing staff at your bank
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not at all a factor

21

39.6

15

45.5

6

30.0

Somewhat a factor

25

47.2

15

45.5

10

50.0

Very much a factor

7

13.2

3

9.1

4

20.0

The most important factor

0

0.0

0

0.0

0

0.0

53

100.0

33

100.0

20

100.0

Total

f. Limited balance sheet or warehousing capacity
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not at all a factor

48

90.6

29

87.9

19

95.0

Somewhat a factor

2

3.8

2

6.1

0

0.0

Very much a factor

3

5.7

2

6.1

1

5.0

The most important factor

0

0.0

0

0.0

0

0.0

53

100.0

33

100.0

20

100.0

Total

20. To what extent is your bank participating in the revised Home Affordable Refinance Program (``HARP
2.0'')?
All
Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

My bank is actively soliciting applications and is
satisfying most demand as it comes in

16

30.2

13

39.4

3

15.0

My bank is not actively soliciting applications, but is
satisfying most demand as it comes in

12

22.6

6

18.2

6

30.0

My bank has very little participation in HARP

25

47.2

14

42.4

11

55.0

Total

53

100.0

33

100.0

20

100.0

21. Based on your experiences to date with HARP 2.0, about what share of applications under HARP 2.0 do
you anticipate will be approved and successfully completed?
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

More than 80 percent

5

9.6

5

15.2

0

0.0

Between 60 and 80 percent

12

23.1

10

30.3

2

10.5

Between 40 and 60 percent

6

11.5

4

12.1

2

10.5

Between 20 and 40 percent

2

3.8

0

0.0

2

10.5

Less than 20 percent

3

5.8

0

0.0

3

15.8

My bank has very little participation in HARP 2.0

24

46.2

14

42.4

10

52.6

Total

52

100.0

33

100.0

19

100.0

22. Indicate to what extent each of the following factors is currently affecting your bank's willingness or
ability to offer additional refinance loans through HARP 2.0. (Please assign each possible factor a number
between 1 and 4 using the following scale: 1= not important, 2=somewhat important, 3=very important, 4=the
most important.)
a. Difficulty in identifying junior lien holders
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

30

65.2

18

62.1

12

70.6

Somewhat important

15

32.6

10

34.5

5

29.4

Very important

1

2.2

1

3.4

0

0.0

The most important

0

0.0

0

0.0

0

0.0

46

100.0

29

100.0

17

100.0

Total

b. Difficulty in obtaining resubordination of a known second lien
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

20

42.6

15

51.7

5

27.8

Somewhat important

16

34.0

12

41.4

4

22.2

Very important

9

19.1

2

6.9

7

38.9

The most important

2

4.3

0

0.0

2

11.1

47

100.0

29

100.0

18

100.0

Total

c. Difficulty in obtaining a transfer of existing private mortgage insurance (PMI) coverage
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

20

42.6

12

41.4

8

44.4

Somewhat important

19

40.4

13

44.8

6

33.3

Very important

4

8.5

3

10.3

1

5.6

The most important

4

8.5

1

3.4

3

16.7

47

100.0

29

100.0

18

100.0

Total

d. Risk that the GSEs might put back the mortgage
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Not important

19

40.4

12

41.4

7

38.9

Somewhat important

11

23.4

8

27.6

3

16.7

Very important

9

19.1

4

13.8

5

27.8

The most important

8

17.0

5

17.2

3

16.7

47

100.0

29

100.0

18

100.0

Total

23. This question asks about your bank's willingness or ability to refinance underwater loans (for which the
unpaid balance exceeds the appraised value) outside of HARP 2.0 for borrowers who have been current on
their existing mortgage for at least 12 months.
A. For loans currently held in your own portfolio
All
Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

My bank is actively soliciting such applications and is
satisfying most demand as it comes in

6

11.3

5

14.7

1

5.3

My bank is not actively soliciting such applications,
but is satisfying most demand as it comes in

20

37.7

11

32.4

9

47.4

My bank is doing very little refinancing of underwater
mortgage loans held in its portfolio outside of HARP
2.0

27

50.9

18

52.9

9

47.4

Total

53

100.0

34

100.0

19

100.0

B. For loans not currently held in your own portfolio
All
Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

My bank is actively soliciting such applications and is
satisfying most demand as it comes in

5

9.3

2

6.1

3

14.3

My bank is not actively soliciting such applications,
but is satisfying most demand as it comes in

13

24.1

9

27.3

4

19.0

My bank is doing very little refinancing of underwater
mortgage loans held in its portfolio outside of HARP
2.0

36

66.7

22

66.7

14

66.7

Total

54

100.0

33

100.0

21

100.0

Questions 24-33 ask about consumer lending at your bank. Question 24 deals with changes in your bank's
willingness to make consumer loans over the past three months. Questions 25-30 deal with changes in credit
standards and loan terms over the same period. Questions 31-33deal 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.
24. Please indicate your bank's willingness to make consumer installment loans now as opposed to three
months ago.
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Much more willing

1

1.8

0

0.0

1

4.5

Somewhat more willing

12

21.8

8

24.2

4

18.2

About unchanged

42

76.4

25

75.8

17

77.3

Somewhat less willing

0

0.0

0

0.0

0

0.0

Much less willing

0

0.0

0

0.0

0

0.0

55

100.0

33

100.0

22

100.0

Total

25. Over the past three months, how have your bank's credit standards for approving applications for credit
cards from individuals or households changed?
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

1

2.3

1

3.6

0

0.0

36

83.7

23

82.1

13

86.7

Eased somewhat

6

14.0

4

14.3

2

13.3

Eased considerably

0

0.0

0

0.0

0

0.0

43

100.0

28

100.0

15

100.0

Remained basically unchanged

Total

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

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

0

0.0

0

0.0

0

0.0

43

82.7

23

76.7

20

90.9

Eased somewhat

9

17.3

7

23.3

2

9.1

Eased considerably

0

0.0

0

0.0

0

0.0

52

100.0

30

100.0

22

100.0

Remained basically unchanged

Total

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

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

0

0.0

0

0.0

0

0.0

51

92.7

31

93.9

20

90.9

Eased somewhat

4

7.3

2

6.1

2

9.1

Eased considerably

0

0.0

0

0.0

0

0.0

55

100.0

33

100.0

22

100.0

Remained basically unchanged

Total

28. Over the past three months, how has your bank changed the following terms and conditions on new or
existing credit card accounts for individuals or households?
a. Credit limits
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

1

2.6

0

0.0

1

7.1

35

89.7

22

88.0

13

92.9

Eased somewhat

3

7.7

3

12.0

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

39

100.0

25

100.0

14

100.0

Remained basically unchanged

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

0

0.0

0

0.0

0

0.0

Tightened somewhat

2

5.1

1

4.0

1

7.1

34

87.2

23

92.0

11

78.6

Eased somewhat

3

7.7

1

4.0

2

14.3

Eased considerably

0

0.0

0

0.0

0

0.0

39

100.0

25

100.0

14

100.0

Remained basically unchanged

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

1

2.6

1

4.0

0

0.0

37

94.9

24

96.0

13

92.9

Eased somewhat

0

0.0

0

0.0

0

0.0

Eased considerably

1

2.6

0

0.0

1

7.1

39

100.0

25

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

2

5.1

1

4.0

1

7.1

37

94.9

24

96.0

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

39

100.0

25

100.0

14

100.0

Remained basically unchanged

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

0

0.0

0

0.0

0

0.0

Tightened somewhat

2

5.1

2

8.0

0

0.0

36

92.3

23

92.0

13

92.9

Eased somewhat

1

2.6

0

0.0

1

7.1

Eased considerably

0

0.0

0

0.0

0

0.0

39

100.0

25

100.0

14

100.0

Remained basically unchanged

Total

29. Over the past three months, how has your bank changed the following terms and conditions on loans to
individuals or households to purchase autos?
a. Maximum maturity
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

0

0.0

0

0.0

0

0.0

45

88.2

25

83.3

20

95.2

Eased somewhat

6

11.8

5

16.7

1

4.8

Eased considerably

0

0.0

0

0.0

0

0.0

51

100.0

30

100.0

21

100.0

Remained basically unchanged

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

0

0.0

0

0.0

0

0.0

Tightened somewhat

3

5.9

3

10.0

0

0.0

Remained basically unchanged

29

56.9

18

60.0

11

52.4

Eased somewhat

18

35.3

9

30.0

9

42.9

1

2.0

0

0.0

1

4.8

51

100.0

30

100.0

21

100.0

Eased considerably
Total

c. Minimum required down payment (higher=tightened, lower=eased)
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

0

0.0

0

0.0

0

0.0

49

96.1

29

96.7

20

95.2

Eased somewhat

2

3.9

1

3.3

1

4.8

Eased considerably

0

0.0

0

0.0

0

0.0

51

100.0

30

100.0

21

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

0

0.0

0

0.0

0

0.0

49

96.1

28

93.3

21

100.0

Eased somewhat

2

3.9

2

6.7

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

51

100.0

30

100.0

21

100.0

Remained basically unchanged

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

0

0.0

0

0.0

0

0.0

Tightened somewhat

0

0.0

0

0.0

0

0.0

48

94.1

28

93.3

20

95.2

Eased somewhat

3

5.9

2

6.7

1

4.8

Eased considerably

0

0.0

0

0.0

0

0.0

51

100.0

30

100.0

21

100.0

Remained basically unchanged

Total

30. Over the past three months, how has your bank changed the following terms and conditions on consumer
loans other than credit card and auto loans?
a. Maximum maturity
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

0

0.0

0

0.0

0

0.0

53

100.0

32

100.0

21

100.0

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

32

100.0

21

100.0

Remained basically unchanged

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

0

0.0

0

0.0

0

0.0

Tightened somewhat

3

5.6

2

6.1

1

4.8

43

79.6

30

90.9

13

61.9

Eased somewhat

7

13.0

1

3.0

6

28.6

Eased considerably

1

1.9

0

0.0

1

4.8

54

100.0

33

100.0

21

100.0

Remained basically unchanged

Total

c. Minimum required down payment (higher=tightened, lower=eased)
All Respondents

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably

0

0.0

0

0.0

0

0.0

Tightened somewhat

0

0.0

0

0.0

0

0.0

53

98.1

33

100.0

20

95.2

Eased somewhat

1

1.9

0

0.0

1

4.8

Eased considerably

0

0.0

0

0.0

0

0.0

54

100.0

33

100.0

21

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

0

0.0

0

0.0

0

0.0

53

98.1

33

100.0

20

95.2

Eased somewhat

1

1.9

0

0.0

1

4.8

Eased considerably

0

0.0

0

0.0

0

0.0

54

100.0

33

100.0

21

100.0

Remained basically unchanged

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

0

0.0

0

0.0

0

0.0

Tightened somewhat

1

1.9

1

3.0

0

0.0

53

98.1

32

97.0

21

100.0

Eased somewhat

0

0.0

0

0.0

0

0.0

Eased considerably

0

0.0

0

0.0

0

0.0

54

100.0

33

100.0

21

100.0

Remained basically unchanged

Total

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

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Substantially stronger

1

2.5

1

3.8

0

0.0

Moderately stronger

7

17.5

5

19.2

2

14.3

31

77.5

20

76.9

11

78.6

Moderately weaker

1

2.5

0

0.0

1

7.1

Substantially weaker

0

0.0

0

0.0

0

0.0

40

100.0

26

100.0

14

100.0

About the same

Total

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

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Substantially stronger

3

5.9

2

6.7

1

4.8

Moderately stronger

16

31.4

9

30.0

7

33.3

About the same

31

60.8

19

63.3

12

57.1

Moderately weaker

1

2.0

0

0.0

1

4.8

Substantially weaker

0

0.0

0

0.0

0

0.0

51

100.0

30

100.0

21

100.0

Total

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

Large Banks

Other Banks

Banks Percent Banks Percent Banks Percent

Substantially stronger

1

1.8

0

0.0

1

4.5

Moderately stronger

8

14.5

6

18.2

2

9.1

46

83.6

27

81.8

19

86.4

Moderately weaker

0

0.0

0

0.0

0

0.0

Substantially weaker

0

0.0

0

0.0

0

0.0

55

100.0

33

100.0

22

100.0

About the same

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 December 31, 2011. The
combined assets of the 36 large banks totaled $7.5 trillion, compared to $7.7 trillion for the entire panel of 58
banks, and $11.1 trillion for all domestically chartered, federally insured commercial banks.

Table 2

1

(Status of policy as of April 2012)
Questions 1-6 ask about commercial and industrial (C&I) loans at your bank. Questions 1-3 deal with
changes in your bank's lending policies over the past three months. Questions 4-5 deal with changes in
demand for C&I loans over the past three months. Question 6 asks about changes in prospective demand for
C&I loans at your bank, as indicated by the volume of recent inquiries about the availability of new credit
lines or increases in existing lines. If your bank's lending policies have not changed over the past three
months, please report them as unchanged even if the policies are either restrictive or accommodative
relative to longer-term norms. If your bank's policies have tightened or eased over the past three months,
please so report them regardless of how they stand relative to longer-term norms. Also, please report
changes in enforcement of existing policies as changes in policies.
1. Over the past three months, how have your bank's credit standards for approving applications for C&I
loans or credit lines—other than those to be used to finance mergers and acquisitions—changed?
All Respondents
Banks Percent

Tightened considerably

0

0.0

Tightened somewhat

2

8.7

21

91.3

Eased somewhat

0

0.0

Eased considerably

0

0.0

23

100.0

Remained basically unchanged

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

0

0.0

Tightened somewhat

3

13.0

19

82.6

Eased somewhat

1

4.3

Eased considerably

0

0.0

23

100.0

Remained basically unchanged

Total
b. Maximum maturity of loans or credit lines

All Respondents
Banks Percent

Tightened considerably

0

0.0

Tightened somewhat

1

4.3

21

91.3

Eased somewhat

1

4.3

Eased considerably

0

0.0

23

100.0

Remained basically unchanged

Total

c. Costs of credit lines
All Respondents
Banks Percent

Tightened considerably

1

4.3

Tightened somewhat

5

21.7

15

65.2

Eased somewhat

2

8.7

Eased considerably

0

0.0

23

100.0

Remained basically unchanged

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

0

0.0

Tightened somewhat

2

9.1

17

77.3

Eased somewhat

3

13.6

Eased considerably

0

0.0

22

100.0

Remained basically unchanged

Total
e. Premiums charged on riskier loans

All Respondents
Banks Percent

Tightened considerably

0

0.0

Tightened somewhat

1

4.5

19

86.4

Eased somewhat

2

9.1

Eased considerably

0

0.0

22

100.0

Remained basically unchanged

Total

f. Loan covenants
All Respondents
Banks Percent

Tightened considerably

0

0.0

Tightened somewhat

0

0.0

21

91.3

Eased somewhat

2

8.7

Eased considerably

0

0.0

23

100.0

Remained basically unchanged

Total
g. Collateralization requirements

All Respondents
Banks Percent

Tightened considerably

0

0.0

Tightened somewhat

1

4.3

22

95.7

Eased somewhat

0

0.0

Eased considerably

0

0.0

23

100.0

Remained basically unchanged

Total

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

Tightened considerably

0

0.0

Tightened somewhat

0

0.0

19

95.0

Eased somewhat

1

5.0

Eased considerably

0

0.0

20

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

4

100.0

Somewhat important

0

0.0

Very important

0

0.0

Total

4

100.0

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

Not important

2

50.0

Somewhat important

0

0.0

Very important

2

50.0

Total

4

100.0

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

Not important

2

50.0

Somewhat important

2

50.0

Very important

0

0.0

Total

4

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

4

100.0

Somewhat important

0

0.0

Very important

0

0.0

Total

4

100.0

e. Reduced tolerance for risk
All Respondents
Banks Percent

Not important

2

40.0

Somewhat important

2

40.0

Very important

1

20.0

Total

5

100.0

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

Not important

3

75.0

Somewhat important

1

25.0

Very important

0

0.0

Total

4

100.0

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

Not important

2

50.0

Somewhat important

2

50.0

Very important

0

0.0

Total

4

100.0

h. Increased concerns about the potential effects of legislative changes, supervisory actions, or
accounting standards
All Respondents
Banks Percent

Not important

2

50.0

Somewhat important

2

50.0

Very important

0

0.0

Total

4

100.0

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

4

100.0

Somewhat important

0

0.0

Very important

0

0.0

Total

4

100.0

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

Not important

1

25.0

Somewhat important

2

50.0

Very important

1

25.0

Total

4

100.0

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

Not important

4

100.0

Somewhat important

0

0.0

Very important

0

0.0

Total

4

100.0

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

Not important

2

40.0

Somewhat important

3

60.0

Very important

0

0.0

Total

5

100.0

e. Increased tolerance for risk
All Respondents
Banks Percent

Not important

4

100.0

Somewhat important

0

0.0

Very important

0

0.0

Total

4

100.0

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

Not important

2

50.0

Somewhat important

1

25.0

Very important

1

25.0

Total

4

100.0

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

Not important

3

75.0

Somewhat important

0

0.0

Very important

1

25.0

Total

4

100.0

h. Reduced concerns about the potential effects of legislative changes, supervisory actions, or
accounting standards
All Respondents
Banks Percent

Not important

4

100.0

Somewhat important

0

0.0

Very important

0

0.0

Total

4

100.0

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

0

0.0

19

86.4

Moderately weaker

3

13.6

Substantially weaker

0

0.0

22

100.0

About the same

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

0

--

Somewhat important

0

--

Very important

0

--

Total

0

--

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

Not important

0

--

Somewhat important

0

--

Very important

0

--

Total

0

--

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

Not important

0

--

Somewhat important

0

--

Very important

0

--

Total

0

--

d. Customer internally generated funds decreased
All Respondents
Banks Percent

Not important

0

--

Somewhat important

0

--

Very important

0

--

Total

0

--

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

Not important

0

--

Somewhat important

0

--

Very important

0

--

Total

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

0

--

Somewhat important

0

--

Very important

0

--

Total

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

2

100.0

Somewhat important

0

0.0

Very important

0

0.0

Total

2

100.0

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

Not important

2

100.0

Somewhat important

0

0.0

Very important

0

0.0

Total

2

100.0

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

Not important

1

50.0

Somewhat important

1

50.0

Very important

0

0.0

Total

2

100.0

d. Customer internally generated funds increased
All Respondents
Banks Percent

Not important

1

50.0

Somewhat important

1

50.0

Very important

0

0.0

Total

2

100.0

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

Not important

1

50.0

Somewhat important

1

50.0

Very important

0

0.0

Total

2

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

2

66.7

Somewhat important

1

33.3

Very important

0

0.0

Total

3

100.0

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

The number of inquiries has increased substantially

0

0.0

The number of inquiries has increased moderately

4

18.2

The number of inquiries has stayed about the same

15

68.2

The number of inquiries has decreased moderately

3

13.6

The number of inquiries has decreased substantially

0

0.0

22

100.0

Total

The ongoing fiscal and financial strains in Europe may have affected lending conditions for nonfinancial
companies that have operations in the United States and significant exposure to European economies, as
well as banks headquartered in Europe and their affiliates and subsidiaries. Question 7 deals with changes
in your bank's lending policies toward both types of firms over the past three months. In addition,
developments in Europe may have affected these firms' demand for credit from U.S. banks. Question 8
deals with such changes in demand.
In answering these questions, please consider your bank's C&I lending to all nonfinancial companies with
operations in the United States and significant exposure to European economies (for example, please
consider your bank's C&I loans both to operations of European firms that are located in the United States
and to domestic firms that conduct a significant portion of their business with European firms). With regard
to banks, please consider banks headquartered in Europe and affiliates and subsidiaries of European banks
regardless of the location of those affiliates and subsidiaries.
7. Over the past three months, how have your bank's credit standards and terms for approving applications for
loans or credit lines—other than those to be used to finance mergers and acquisitions—for the following types
of firms changed?
A. Nonfinancial companies that have operations in the United States and significant exposure to
European economies (as described in the introduction to these special questions)
All Respondents
Banks Percent

Tightened considerably

0

0.0

Tightened somewhat

4

18.2

18

81.8

Eased somewhat

0

0.0

Eased considerably

0

0.0

22

100.0

Remained basically unchanged

Total

For this question, 1 respondent answered “My bank does not make loans or extend credit lines to
nonfinancial companies that have operations in the United States and significant exposure to
European economies.”

B. Banks headquartered in Europe and their affiliates and subsidiaries (as described in the introduction
to these special questions)
All Respondents
Banks Percent

Tightened considerably

0

0.0

Tightened somewhat

4

23.5

12

70.6

Eased somewhat

1

5.9

Eased considerably

0

0.0

17

100.0

Remained basically unchanged

Total

For this question, 4 respondents answered “My bank does not make loans or extend credit lines
to banks headquartered in Europe or their affiliates or subsidiaries.”
8. Over the past three months and apart from normal seasonal variation, how has demand for loans at your
bank from the following types of firms changed? (Please consider only funds actually disbursed as opposed to
requests for new or increased lines of credit.)
A. Nonfinancial companies with operations in the United States and significant exposures to European
economies (as described in the introduction to these special questions)
All Respondents
Banks Percent

Substantially stronger

0

0.0

Moderately stronger

0

0.0

21

100.0

Moderately weaker

0

0.0

Substantially weaker

0

0.0

21

100.0

About the same

Total

For this question, 1 respondent answered “My bank does not make loans or extend credit lines to
nonfinancial companies that have operations in the United States and significant exposure to
European economies.”

B. Banks headquartered in Europe and their affiliates and subsidiaries (as described in the introduction
to these special questions)
All Respondents
Banks Percent

Substantially stronger

0

0.0

Moderately stronger

0

0.0

15

88.2

Moderately weaker

2

11.8

Substantially weaker

0

0.0

17

100.0

About the same

Total

For this question, 4 respondents answered “My bank does not make loans or extend credit lines
to banks headquartered in Europe or their affiliates or subsidiaries.”

Questions 9-10 ask about commercial real estate (CRE) loans at your bank, including construction and land
development loans and loans secured by nonfarm nonresidential real estate. Question 9 deals with changes
in your bank's standards over the past three months. Question 10 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.
9. Over the past three months, how have your bank's credit standards for approving applications for CRE
loans changed?
All Respondents
Banks Percent

Tightened considerably

1

6.7

Tightened somewhat

0

0.0

13

86.7

Eased somewhat

1

6.7

Eased considerably

0

0.0

15

100.0

Remained basically unchanged

Total

10. Apart from normal seasonal variation, how has demand for CRE loans changed over the past three
months?
All Respondents
Banks Percent

Substantially stronger

0

0.0

Moderately stronger

3

20.0

About the same

9

60.0

Moderately weaker

3

20.0

Substantially weaker

0

0.0

15

100.0

Total

1. As of December 31, 2011, the 23 respondents had combined assets of $1.1 trillion, compared to $2.1
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.