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pdfDIVISION OF MONETARY AFFAIRS
For release at 2:00 p.m. ET
TO:
May 4, 2015
HEADS OF RESEARCH AT ALL FEDERAL RESERVE BANKS
Enclosed for distribution to respondents is a national summary of the April 2015
Senior Loan Officer Opinion Survey on Bank Lending Practices.
Enclosures:
April 2015 Senior Loan Officer Opinion Survey on Bank Lending Practices
This document is available on the Federal Reserve Board’s web site
(http://www.federalreserve.gov/econresdata/statisticsdata.htm).
The April 2015 Senior Loan Officer Opinion Survey on Bank Lending Practices
The April 2015 Senior Loan Officer Opinion Survey on Bank Lending Practices addressed changes in the
standards and terms on, and demand for, bank loans to businesses and households over the past three
months.1 This summary discusses the responses from 76 domestic banks and 23 U.S. branches and
agencies of foreign banks.2
Regarding loans to businesses, the April survey results indicated that, on balance, banks reported little
change in their standards on commercial and industrial (C&I) loans in the first quarter of 2015.3 On net,
banks reported having eased some price terms. With respect to commercial real estate (CRE) lending, on
balance, survey respondents reported having eased standards on loans secured by nonfarm nonresidential
properties. A few large banks also indicated that they had eased standards on construction and land
development loans, and some large banks reported that they had eased standards on loans secured by
multifamily properties.4 In addition, survey respondents reported having eased some CRE loan terms, on
net, over the past year. On the demand side, banks indicated having experienced little change in demand
for C&I loans in the first quarter; in contrast, respondents reported stronger demand for all three
categories of CRE loans covered in the survey.
The survey contained a set of special questions about lending to firms in the oil and natural gas drilling or
extraction sector. Banks expected delinquency and charge-off rates on such loans to deteriorate over
2015, but they indicated that their exposures were small, and that they were undertaking a number of
actions to mitigate the risk of loan losses.
Regarding loans to households, banks reported having eased lending standards for a number of categories
of residential mortgage loans over the past three months on net. Most banks reported no change in
standards and terms on consumer loans. On the demand side, moderate net fractions of banks reported
stronger demand across most categories of home-purchase loans. Similarly, respondents experienced
stronger demand for auto and credit card loans on balance.
1
Respondent banks received the survey on or after March 31, 2015, and responses were due by April 14,
2015.
2
Unless otherwise indicated, this document refers to reports from domestic banks in the survey.
For questions that ask about lending standards or terms, reported net fractions equal the fraction of banks
that reported having tightened (“tightened considerably” or “tightened somewhat”) minus the fraction of banks that
reported having eased (“eased considerably” or “eased somewhat”). For questions that ask about loan demand,
reported net fractions equals 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”).
4
The three categories of CRE loans covered in the survey are construction and land development loans,
loans secured by nonfarm nonresidential properties, and loans secured by multifamily residential properties.
3
Lending to Businesses
(Table 1, questions 1–18; Table 2, questions 1–14)
Questions on commercial and industrial lending. Banks reported little change in standards for C&I
loans to firms of all sizes over the past three months, as the small number of banks that reported having
tightened standards about equaled the small number that reported having eased them.5 Moderate net
fractions of banks continued to report having narrowed spreads, including interest rate floors less
frequently, and reducing the cost of credit lines; a modest net fraction of banks reduced the premium
charged on riskier loans to large and middle-market firms. Banks generally indicated that they had left
nonprice terms about unchanged, although modest net fractions of banks reported having eased policies
on loan covenants and having increased the maximum size of credit lines. A few foreign banks reported
having eased standards on C&I loans, and modest net fractions of such banks indicated they had increased
the maximum size of credit lines or decreased the use of loan covenants.
Most domestic respondents that reported having eased either standards or terms on C&I loans over the
past three months cited more-aggressive competition from other banks or nonbank lenders as an important
reason for having done so. Smaller numbers of banks also attributed their easing to a more favorable or
less uncertain economic outlook, increased tolerance for risk, or improvements in industry-specific
problems.
The small number of banks that reported having tightened either their standards or terms on C&I loans
predominantly pointed to industry-specific problems, a less favorable or more uncertain economic
outlook, or increased concerns about the effects of legislative changes, supervisory actions, or changes in
accounting standards as the main reasons for having tightened their lending policies to nonfinancial
businesses.
Responses about demand for C&I loans were mixed, and, on balance, demand was little changed over the
first quarter of 2015. Those banks that reported having seen stronger demand primarily attributed it to
increased investment in plant or equipment, increased financing needs for accounts receivable, increased
financing needs for inventories, increased funding needs for mergers or acquisitions, or a shift of
customer borrowing to their bank from other bank or nonbank sources. Banks that reported having
experienced weaker demand pointed to decreased need for merger or acquisition financing, a shift of
customer borrowing away from their bank to other bank and nonbank sources, decreased investment in
plant or equipment, and increases in customer internally generated funds. The large majority of foreign
banks reported having experienced little change in loan demand over the first quarter of 2015.
Special questions on commercial and industrial lending. The April survey asked a set of special
questions about lending to firms in the oil and natural gas drilling or extraction sector. Of the banks that
made loans to such firms, more than 80 percent indicated that such lending accounted for less than
5
The survey asked respondents separately about their standards for, and demand from, large and middlemarket firms, which are generally defined as firms with annual sales of $50 million or more, and small firms, which
are those with annual sales of less than $50 million.
10 percent of their C&I loans outstanding. More than half of the banks who made loans to this sector
expected loan quality to deteriorate somewhat over the remainder of 2015. Banks indicated they were
taking a variety of actions to mitigate loan losses, including restructuring outstanding loans, reducing the
size of existing credit lines, requiring additional collateral, tightening underwriting policies on new loans
or lines of credit, and enforcing material adverse change clauses or other covenants.
Questions on commercial real estate lending. On balance, survey respondents reported having eased
standards on loans secured by nonfarm nonresidential properties. A few large banks indicated that they
had eased standards on construction and land development loans, and some large banks reported that they
had eased standards on loans secured by multifamily properties. Regarding changes in demand for CRE
loans, modest net fractions of banks indicated that they had experienced stronger demand for loans
secured by multifamily residential properties and loans secured by nonfarm nonresidential properties. A
somewhat larger net fraction of banks reported stronger demand for construction and land development
loans. Foreign respondents reported little change to either standards on, or demand for, CRE loans.
Special questions on commercial real estate lending. The April survey included a set of special
questions (repeated annually, with some differences, since 2001) regarding changes in specific lending
policies for CRE loans over the past year. Moderate net fractions of banks reported that, over the past
12 months, they had eased spreads, increased maximum loan sizes, and increased the maximum maturity
on such loans; a modest net fraction indicated that they had increased market areas served. Survey
respondents did not report many changes in other loan terms, such as loan-to-value ratios and debt service
coverage ratios. Several foreign respondents reported having decreased spreads over the past year, while
few reported changes in other terms.
Survey respondents were asked to rank the top four reasons for their changes in lending policies. Both
domestic and foreign banks primarily pointed to more-aggressive competition from other bank or
nonbank lenders and more favorable or less uncertain outlooks for vacancy rates or CRE property prices.
Finally, banks were asked how they expected the pace of CRE loan originations during 2015 to change
relative to 2014. A modest net fraction of domestic banks and a few foreign banks expected an increase
in the pace of originations for loans secured by nonfarm nonresidential properties. In addition, domestic
banks also expected the pace of one- to four-family residential construction loans to increase somewhat
during 2015 relative to 2014. In contrast, the expected paces of originations for the remaining categories
of CRE loans were about unchanged for both domestic and foreign respondents.
Lending to Households
(Table 1, questions 19–33)
Questions on residential real estate lending. Modest net fractions of banks indicated that they had
eased standards on loans eligible for purchase by government-sponsored enterprises (known as GSE-
eligible mortgage loans) and on government and qualified mortgage (QM) jumbo mortgage loans.6
Regarding changes in demand, modest to moderate net fractions of banks reported stronger demand
across most categories of home-purchase loans. Modest net fractions of banks reported having eased their
standards on, and experienced stronger demand for, home equity lines of credit.
Special questions on residential real estate lending. A special question asked banks about how they
had responded to new guidelines issued by the GSEs on November 20, 2014, on the definition of life-ofloan representation and warranty exclusions. These policies were designed, in part, to reduce uncertainty
and increase transparency about the conditions under which securitized mortgages would be returned to
the bank that originated the loan.7 Only a few banks indicated that they had changed their lending
policies in response to the new guidelines.
Questions on consumer lending. A small net fraction of large banks indicated that they were more
willing to make consumer installment loans over the past three months. A few large banks reported
having eased their standards for auto loans and for consumer loans other than credit card and auto loans,
while standards for approving applications for credit card loans were about unchanged on net. Moreover,
most terms on credit cards were reported to have changed little. Very few banks reported changes on any
of the terms on auto loans or other consumer loans, except for a small net fraction of banks that reported
having reduced the spreads of loan rates over the cost of funds for both loan types.
A modest net fraction of large banks reported having experienced an increase in demand for credit cards
over the past three months; a modest net fraction of smaller banks indicated having seen stronger demand
for auto loans. In contrast, demand for other consumer loans was reported to have remained about
unchanged.
This document was prepared by John Driscoll, with the assistance of Shaily Patel, Division of Monetary
Affairs, Board of Governors of the Federal Reserve System.
6
See the appendix for a description of the seven categories of residential home-purchase loans introduced
in the January 2015 survey.
7
For the text of the announcement, see Fannie Mae (2014), “Lender Selling Representations and
Warranties Framework Updates,” Selling Guide announcement SEL-2014-14, November 20, available at
www.fanniemae.com/portal/funding-the-market/mbs/news/2014/announcement-112014.html.
Appendix: Definitions
The January 2015 survey introduced new categories of residential real estate (RRE) loans that
were designed to reflect the Consumer Financial Protection Bureau’s qualified mortgage rules.8 The
seven new categories of RRE loans are defined as follows:
1. The GSE-eligible category of residential mortgages includes loans that meet the underwriting
guidelines, including the loan limit amounts, of the government-sponsored enterprises (GSEs)
Fannie Mae and Freddie Mac.
2. The government category of residential mortgages includes loans that are insured by the
Federal Housing Administration, guaranteed by the Department of Veterans Affairs, or
originated under government programs, including the U.S. Department of Agriculture home
loan programs.
3. The QM non-jumbo, non-GSE-eligible category of residential mortgages includes loans that
satisfy the standards for a qualified mortgage and have loan balances that are below the loan
limit amounts set by the GSEs but otherwise do not meet the GSE underwriting guidelines.
4. The QM jumbo category of residential mortgages includes loans that satisfy the standards for
a qualified mortgage but have loan balances that are above the loan limit amount set by the
GSEs.
5. The non-QM jumbo category of residential mortgages includes loans that do not satisfy the
standards for a qualified mortgage and have loan balances that are above the loan limit
amount set by the GSEs.
6. The non-QM non-jumbo category of residential mortgages includes loans that do not satisfy
the standards for a qualified mortgage and have loan balances that are below the loan limit
amount set by the GSEs. Banks were asked to exclude from this category loans classified as
subprime.
8
The definition of a qualified mortgage (QM) was introduced in the 2013 Mortgage Rules under the Truth
in Lending Act (12 CFR Part 1026.32, Regulation Z). The standard for a QM excludes mortgages with loan
characteristics such as negative amortization, balloon and interest-only payment schedules, terms exceeding
30 years, alt-A or no documentation, and total points and fees that exceed 3 percent of the loan amount. In addition,
a QM requires that the monthly debt-to-income ratio of borrowers not exceed 43 percent. For more on the ability to
repay and QM standards under Regulation Z, see the Consumer Financial Protection Bureau’s website at
www.consumerfinance.gov/regulations/ability-to-repay-and-qualified-mortgage-standards-under-the-truth-inlending-act-regulation-z/.
7. The subprime category of residential mortgages includes loans classified by banks as
subprime. This category typically includes loans made to borrowers with weakened credit
histories, which may include payment delinquencies, charge-offs, judgments, or bankruptcies;
reduced repayment capacity as measured by credit scores or debt-to-income ratios; or
incomplete credit histories.
Measures of Supply and Demand for Commercial and Industrial Loans,
by Size of Firm Seeking Loan
Net Percentage of Domestic Respondents Tightening Standards for Commercial and Industrial Loans
Percent
100
Jan.
survey
Loans to large and middle-market firms
Loans to small firms
80
60
40
20
0
-20
-40
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
2015
Net Percentage of Domestic Respondents Increasing Spreads of Loan Rates over Bank’s Cost of Funds
Percent
100
Jan.
survey
80
60
40
20
0
-20
-40
-60
-80
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
2015
Net Percentage of Domestic Respondents Reporting Stronger Demand for Commercial and Industrial Loans
Percent
60
Jan.
survey
40
20
0
-20
-40
-60
-80
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
2015
Measures of Supply and Demand for Commercial Real Estate Loans
Net Percentage of Domestic Respondents Tightening Standards for Commercial Real Estate Loans
Percent
Percent
100
100
All commercial real estate loans
Construction and land development
Nonfarm nonresidential
Multifamily
80
80
60
60
40
40
20
20
0
0
-20
-20
1993
1997
2001
2005
2009
2013
Q4
2013
Q1
Q2 Q3
2014
Q4
Q1 Q2
2015
Net Percentage of Domestic Respondents Reporting Stronger Demand for Commercial Real Estate Loans
Percent
Percent
60
60
40
40
20
20
0
0
-20
-20
-40
-40
-60
-60
All commercial real estate loans
Construction and land development
Nonfarm nonresidential
Multifamily
-80
-80
1993
1997
2001
2005
2009
2013
Q4
2013
Q1
Q2 Q3
2014
Q4
Q1 Q2
2015
Note: For data starting in 2013:Q4, changes in demand for construction and land development, nonfarm nonresidential, and multifamily loans are reported separately.
Measures of Supply and Demand for Residential Mortgage Loans
Net Percentage of Domestic Respondents Tightening Standards for Residential Mortgage Loans
Percent
Net percent
100
100
All residential mortgage loans
Prime
Nontraditional
Subprime
80
GSE
Government
QM non-jumbo non-GSE
QM-jumbo
Non-QM jumbo
Non-QM non-jumbo
Subprime
60
80
60
40
20
40
0
-20
20
-40
0
-60
-80
-20
-100
1990
1993
1996
1999
2002
2005
2008
2011
2014
2015:Q1
2015:Q2
Net Percentage of Domestic Respondents Reporting Stronger Demand for Residential Mortgage Loans
Percent
Net percent
80
All residential mortgage loans
Prime
Nontraditional
Subprime
60
40
20
100
GSE
Government
QM non-jumbo non-GSE
QM-jumbo
Non-QM jumbo
Non-QM non-jumbo
Subprime
80
60
40
20
0
0
-20
-20
-40
-40
-60
-60
-80
-80
-100
-100
1990
1994
1998
2002
2006
2010
2014
2015:Q1
2015:Q2
Note: For data starting in 2007:Q2, changes in standards and demand for prime, nontraditional, and subprime mortgage loans are reported separately. For data starting in
2014:Q4, changes in standards and demand were expanded into the following seven categories: GSE-eligible; government; QM non-jumbo non-GSE-eligible; QM-jumbo;
non-QM jumbo; non-QM non-jumbo; and subprime. 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
Auto loans
Other consumer loans
Credit card loans
Other consumer loans
80
80
60
60
40
40
20
20
0
0
-20
-20
-40
-40
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2011
2012
2013
2014
2015
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
60
Jan.
survey
40
20
0
-20
-40
-60
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
2015
Net Percentage of Domestic Respondents Reporting Stronger Demand for Consumer Loans
Percent
Percent
100
100
Credit card loans
Auto loans
Other consumer loans
All consumer loans
80
80
60
60
40
40
20
20
0
0
-20
-20
-40
-40
-60
-60
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2011
2012
2013
2014
2015
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.
1
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 middle-market 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
3
4.0
2
4.9
1
2.9
65
86.7
35
85.4
30
88.2
Eased somewhat
7
9.3
4
9.8
3
8.8
Eased considerably
0
0.0
0
0.0
0
0.0
75
100.0
41
100.0
34
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
3
4.2
1
2.7
2
5.7
65
90.3
36
97.3
29
82.9
Eased somewhat
4
5.6
0
0.0
4
11.4
Eased considerably
0
0.0
0
0.0
0
0.0
72
100.0
37
100.0
35
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
2.7
0
0.0
2
5.9
Remained basically unchanged
61
81.3
31
75.6
30
88.2
Eased somewhat
12
16.0
10
24.4
2
5.9
0
0.0
0
0.0
0
0.0
75
100.0
41
100.0
34
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
74
98.7
41
100.0
33
97.1
Eased somewhat
1
1.3
0
0.0
1
2.9
Eased considerably
0
0.0
0
0.0
0
0.0
75
100.0
41
100.0
34
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
1
1.3
1
2.4
0
0.0
Remained basically unchanged
53
70.7
29
70.7
24
70.6
Eased somewhat
20
26.7
11
26.8
9
26.5
1
1.3
0
0.0
1
2.9
75
100.0
41
100.0
34
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
3
4.0
3
7.3
0
0.0
Remained basically unchanged
39
52.0
21
51.2
18
52.9
Eased somewhat
31
41.3
17
41.5
14
41.2
2
2.7
0
0.0
2
5.9
75
100.0
41
100.0
34
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
3
4.0
3
7.3
0
0.0
Remained basically unchanged
62
82.7
31
75.6
31
91.2
Eased somewhat
10
13.3
7
17.1
3
8.8
0
0.0
0
0.0
0
0.0
75
100.0
41
100.0
34
100.0
Eased considerably
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
4
5.3
3
7.3
1
2.9
Remained basically unchanged
61
81.3
32
78.0
29
85.3
Eased somewhat
10
13.3
6
14.6
4
11.8
0
0.0
0
0.0
0
0.0
75
100.0
41
100.0
34
100.0
Eased considerably
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
71
94.7
39
95.1
32
94.1
Eased somewhat
4
5.3
2
4.9
2
5.9
Eased considerably
0
0.0
0
0.0
0
0.0
75
100.0
41
100.0
34
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
2
2.8
0
0.0
2
6.3
Remained basically unchanged
54
76.1
33
84.6
21
65.6
Eased somewhat
12
16.9
4
10.3
8
25.0
3
4.2
2
5.1
1
3.1
71
100.0
39
100.0
32
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
69
97.2
35
94.6
34
100.0
Eased somewhat
2
2.8
2
5.4
0
0.0
Eased considerably
0
0.0
0
0.0
0
0.0
71
100.0
37
100.0
34
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
68
95.8
36
97.3
32
94.1
Eased somewhat
3
4.2
1
2.7
2
5.9
Eased considerably
0
0.0
0
0.0
0
0.0
71
100.0
37
100.0
34
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
56
78.9
30
81.1
26
76.5
Eased somewhat
15
21.1
7
18.9
8
23.5
0
0.0
0
0.0
0
0.0
71
100.0
37
100.0
34
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
2
2.8
2
5.4
0
0.0
Remained basically unchanged
39
54.9
23
62.2
16
47.1
Eased somewhat
29
40.8
12
32.4
17
50.0
1
1.4
0
0.0
1
2.9
71
100.0
37
100.0
34
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
2.8
2
5.4
0
0.0
64
90.1
32
86.5
32
94.1
Eased somewhat
5
7.0
3
8.1
2
5.9
Eased considerably
0
0.0
0
0.0
0
0.0
71
100.0
37
100.0
34
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
2
2.8
1
2.7
1
2.9
61
85.9
33
89.2
28
82.4
Eased somewhat
8
11.3
3
8.1
5
14.7
Eased considerably
0
0.0
0
0.0
0
0.0
71
100.0
37
100.0
34
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
69
97.2
37
100.0
32
94.1
Eased somewhat
2
2.8
0
0.0
2
5.9
Eased considerably
0
0.0
0
0.0
0
0.0
71
100.0
37
100.0
34
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
2
2.9
0
0.0
2
6.1
Remained basically unchanged
53
77.9
32
91.4
21
63.6
Eased somewhat
11
16.2
2
5.7
9
27.3
2
2.9
1
2.9
1
3.0
68
100.0
35
100.0
33
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
11
91.7
6
85.7
5
100.0
Somewhat important
1
8.3
1
14.3
0
0.0
Very important
0
0.0
0
0.0
0
0.0
12
100.0
7
100.0
5
100.0
Total
b. Less favorable or more uncertain economic outlook
All Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
Not important
5
41.7
3
42.9
2
40.0
Somewhat important
7
58.3
4
57.1
3
60.0
Very important
0
0.0
0
0.0
0
0.0
12
100.0
7
100.0
5
100.0
Total
c. Worsening of industry-specific problems (please specify industries)
All Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
Not important
4
33.3
2
28.6
2
40.0
Somewhat important
6
50.0
5
71.4
1
20.0
Very important
2
16.7
0
0.0
2
40.0
12
100.0
7
100.0
5
100.0
Total
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
10
83.3
6
85.7
4
80.0
Somewhat important
2
16.7
1
14.3
1
20.0
Very important
0
0.0
0
0.0
0
0.0
12
100.0
7
100.0
5
100.0
Total
e. Reduced tolerance for risk
All Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
Not important
8
66.7
5
71.4
3
60.0
Somewhat important
3
25.0
2
28.6
1
20.0
Very important
1
8.3
0
0.0
1
20.0
12
100.0
7
100.0
5
100.0
Total
f. Decreased liquidity in the secondary market for these loans
All Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
Not important
9
75.0
4
57.1
5
100.0
Somewhat important
3
25.0
3
42.9
0
0.0
Very important
0
0.0
0
0.0
0
0.0
12
100.0
7
100.0
5
100.0
Total
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
12
100.0
7
100.0
5
100.0
Somewhat important
0
0.0
0
0.0
0
0.0
Very important
0
0.0
0
0.0
0
0.0
12
100.0
7
100.0
5
100.0
Total
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
5
41.7
3
42.9
2
40.0
Somewhat important
4
33.3
3
42.9
1
20.0
Very important
3
25.0
1
14.3
2
40.0
12
100.0
7
100.0
5
100.0
Total
B. Possible reasons for easing credit standards or loan terms:
a. Improvement in your bank's current or expected capital position
All Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
Not important
37
86.0
22
91.7
15
78.9
Somewhat important
4
9.3
2
8.3
2
10.5
Very important
2
4.7
0
0.0
2
10.5
43
100.0
24
100.0
19
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
27
62.8
16
66.7
11
57.9
Somewhat important
11
25.6
7
29.2
4
21.1
5
11.6
1
4.2
4
21.1
43
100.0
24
100.0
19
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
31
72.1
21
87.5
10
52.6
Somewhat important
10
23.3
3
12.5
7
36.8
2
4.7
0
0.0
2
10.5
43
100.0
24
100.0
19
100.0
Very important
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
3
7.0
1
4.2
2
10.5
Somewhat important
13
30.2
7
29.2
6
31.6
Very important
27
62.8
16
66.7
11
57.9
Total
43
100.0
24
100.0
19
100.0
e. Increased tolerance for risk
All Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
Not important
28
65.1
18
75.0
10
52.6
Somewhat important
12
27.9
4
16.7
8
42.1
3
7.0
2
8.3
1
5.3
43
100.0
24
100.0
19
100.0
Very important
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
34
79.1
20
83.3
14
73.7
Somewhat important
8
18.6
4
16.7
4
21.1
Very important
1
2.3
0
0.0
1
5.3
43
100.0
24
100.0
19
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
36
83.7
22
91.7
14
73.7
Somewhat important
6
14.0
2
8.3
4
21.1
Very important
1
2.3
0
0.0
1
5.3
43
100.0
24
100.0
19
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
35
81.4
22
91.7
13
68.4
Somewhat important
7
16.3
2
8.3
5
26.3
Very important
1
2.3
0
0.0
1
5.3
43
100.0
24
100.0
19
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
12
16.0
4
9.8
8
23.5
About the same
51
68.0
29
70.7
22
64.7
Moderately weaker
12
16.0
8
19.5
4
11.8
0
0.0
0
0.0
0
0.0
75
100.0
41
100.0
34
100.0
Substantially weaker
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
11
15.1
2
5.3
9
25.7
About the same
54
74.0
32
84.2
22
62.9
Moderately weaker
8
11.0
4
10.5
4
11.4
Substantially weaker
0
0.0
0
0.0
0
0.0
73
100.0
38
100.0
35
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
6
42.9
4
80.0
2
22.2
Somewhat important
8
57.1
1
20.0
7
77.8
Very important
0
0.0
0
0.0
0
0.0
14
100.0
5
100.0
9
100.0
Total
b. Customer accounts receivable financing needs increased
All Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
Not important
5
35.7
4
80.0
1
11.1
Somewhat important
9
64.3
1
20.0
8
88.9
Very important
0
0.0
0
0.0
0
0.0
14
100.0
5
100.0
9
100.0
Total
c. Customer investment in plant or equipment increased
All Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
Not important
5
35.7
2
40.0
3
33.3
Somewhat important
9
64.3
3
60.0
6
66.7
Very important
0
0.0
0
0.0
0
0.0
14
100.0
5
100.0
9
100.0
Total
d. Customer internally generated funds decreased
All Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
Not important
12
85.7
5
100.0
7
77.8
Somewhat important
1
7.1
0
0.0
1
11.1
Very important
1
7.1
0
0.0
1
11.1
14
100.0
5
100.0
9
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
6
42.9
1
20.0
5
55.6
Somewhat important
5
35.7
1
20.0
4
44.4
Very important
3
21.4
3
60.0
0
0.0
14
100.0
5
100.0
9
100.0
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
6
42.9
2
40.0
4
44.4
Somewhat important
6
42.9
2
40.0
4
44.4
Very important
2
14.3
1
20.0
1
11.1
14
100.0
5
100.0
9
100.0
Total
g. Customers' precautionary demand for cash and liquidity increased
All Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
Not important
13
92.9
5
100.0
8
88.9
Somewhat important
1
7.1
0
0.0
1
11.1
Very important
0
0.0
0
0.0
0
0.0
14
100.0
5
100.0
9
100.0
Total
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
12
85.7
8
88.9
4
80.0
Somewhat important
2
14.3
1
11.1
1
20.0
Very important
0
0.0
0
0.0
0
0.0
14
100.0
9
100.0
5
100.0
Total
b. Customer accounts receivable financing needs decreased
All Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
Not important
13
92.9
9
100.0
4
80.0
Somewhat important
1
7.1
0
0.0
1
20.0
Very important
0
0.0
0
0.0
0
0.0
14
100.0
9
100.0
5
100.0
Total
c. Customer investment in plant or equipment decreased
All Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
Not important
9
64.3
8
88.9
1
20.0
Somewhat important
4
28.6
1
11.1
3
60.0
Very important
1
7.1
0
0.0
1
20.0
14
100.0
9
100.0
5
100.0
Total
d. Customer internally generated funds increased
All Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
Not important
10
71.4
8
88.9
2
40.0
Somewhat important
3
21.4
0
0.0
3
60.0
Very important
1
7.1
1
11.1
0
0.0
14
100.0
9
100.0
5
100.0
Total
e. Customer merger or acquisition financing needs decreased
All Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
Not important
6
42.9
5
55.6
1
20.0
Somewhat important
7
50.0
3
33.3
4
80.0
Very important
1
7.1
1
11.1
0
0.0
14
100.0
9
100.0
5
100.0
Total
f. Customer borrowing shifted from your bank to other bank or nonbank sources
because these other sources became more attractive
All Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
Not important
7
50.0
4
44.4
3
60.0
Somewhat important
6
42.9
4
44.4
2
40.0
Very important
1
7.1
1
11.1
0
0.0
14
100.0
9
100.0
5
100.0
Total
g. Customers’ precautionary demand for cash and liquidity decreased
All Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
Not important
14
100.0
9
100.0
5
100.0
Somewhat important
0
0.0
0
0.0
0
0.0
Very important
0
0.0
0
0.0
0
0.0
14
100.0
9
100.0
5
100.0
Total
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
11
14.5
3
7.3
8
22.9
The number of inquiries has stayed about
the same
56
73.7
32
78.0
24
68.6
The number of inquiries has decreased
moderately
9
11.8
6
14.6
3
8.6
The number of inquiries has decreased
substantially
0
0.0
0
0.0
0
0.0
76
100.0
41
100.0
35
100.0
Total
Recent declines in oil prices may have led to strains in firms involved in oil and natural gas
drilling/extraction and in the companies that provide support to those firms. Question 7 asks you
to indicate what fraction of C&I loans held on your books are made to firms in the oil and natural
gas drilling/extraction sector. Question 8 asks about your outlook for delinquencies and
charge-offs on such loans. Question 9 asks about changes in credit policies made by your bank in
response to developments in the oil and natural gas drilling/extraction sector.
7. Approximately what fraction of C&I loans currently outstanding on your bank's books were
made to firms in the oil and natural gas drilling/extraction sector?
All Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
More than 30 percent
0
0.0
0
0.0
0
0.0
More than 20 but less than 30 percent
2
3.9
2
6.1
0
0.0
More than 10 but less than 20 percent
7
13.7
5
15.2
2
11.1
Less than 10 percent
42
82.4
26
78.8
16
88.9
Total
51
100.0
33
100.0
18
100.0
For this question, 23 respondents answered “My bank does not make loans or extend
lines of credit to firms in the oil and natural gas drilling/extraction sector.”
8. Assuming that economic activity progresses in line with consensus forecasts, and energy
commodity prices evolve in line with current future prices, what is your outlook for delinquencies
and charge- offs on your bank's loans to firms in the oil and natural gas drilling/extraction sector
over the remainder of 2015?
All
Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
Loan quality is likely to improve
substantially
0
0.0
0
0.0
0
0.0
Loan quality is likely to improve somewhat
1
2.0
0
0.0
1
5.6
Loan quality is likely to remain around
current levels
20
39.2
14
42.4
6
33.3
Loan quality is likely to deteriorate
somewhat
30
58.8
19
57.6
11
61.1
Loan quality is likely to deteriorate
substantially
0
0.0
0
0.0
0
0.0
51
100.0
33
100.0
18
100.0
Total
For this question, 21 respondents answered “My bank does not hold loans to firms in
the oil and natural gas drilling/extraction sector.”
9. Please indicate how important each of the following actions are in your bank's efforts to
mitigate risks of loan losses from loans made to firms in the oil and natural gas drilling/extraction
sector. (Please rate each possible action using the following scale: 1=not important, 2=somewhat
important, 3=very important).
a. Tightening underwriting policies on new loans or lines of credit made to firms in
this sector
All Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
Not important
15
29.4
9
27.3
6
33.3
Somewhat important
21
41.2
15
45.5
6
33.3
Very important
15
29.4
9
27.3
6
33.3
Total
51
100.0
33
100.0
18
100.0
b. Enforcing material adverse change clauses or other convenants to limit draws on
existing credit lines to firms in this sector
All Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
Not important
26
51.0
16
48.5
10
55.6
Somewhat important
20
39.2
13
39.4
7
38.9
5
9.8
4
12.1
1
5.6
51
100.0
33
100.0
18
100.0
Very important
Total
c. Reducing the size of existing credit lines to firms in this sector
All Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
Not important
10
19.6
3
9.1
7
38.9
Somewhat important
28
54.9
18
54.5
10
55.6
Very important
13
25.5
12
36.4
1
5.6
Total
51
100.0
33
100.0
18
100.0
d. Restructuring outstanding loans to make them more robust to the revised outlook for
energy prices
All Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
Not important
9
17.6
4
12.1
5
27.8
Somewhat important
27
52.9
18
54.5
9
50.0
Very important
15
29.4
11
33.3
4
22.2
Total
51
100.0
33
100.0
18
100.0
e. Requiring additional collateral to better secure loans or credit lines to firms in this
sector
All Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
Not important
15
29.4
9
27.3
6
33.3
Somewhat important
28
54.9
20
60.6
8
44.4
8
15.7
4
12.1
4
22.2
51
100.0
33
100.0
18
100.0
Very important
Total
f. Tightening underwriting policies on new loans or credit lines made to firms in other
sectors
All Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
Not important
36
70.6
26
78.8
10
55.6
Somewhat important
10
19.6
6
18.2
4
22.2
5
9.8
1
3.0
4
22.2
51
100.0
33
100.0
18
100.0
Very important
Total
Questions 10-15 ask about changes in standards and demand over the past three months for
three different types of CRE loans at your bank: construction and land development loans, loans
secured by nonfarm nonresidential properties, and loans secured by multifamily residential
properties. Please report changes in enforcement of existing policies as changes in policies.
10. Over the past three months, how have your bank's credit standards for approving new
applications for construction and land development loans or credit lines 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
4.0
1
2.5
2
5.7
67
89.3
36
90.0
31
88.6
Eased somewhat
5
6.7
3
7.5
2
5.7
Eased considerably
0
0.0
0
0.0
0
0.0
75
100.0
40
100.0
35
100.0
Remained basically unchanged
Total
11. Over the past three months, how have your bank's credit standards for approving new
applications for loans secured by nonfarm nonresidential properties 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
2
2.6
0
0.0
2
5.7
66
86.8
35
85.4
31
88.6
Eased somewhat
8
10.5
6
14.6
2
5.7
Eased considerably
0
0.0
0
0.0
0
0.0
76
100.0
41
100.0
35
100.0
Remained basically unchanged
Total
12. Over the past three months, how have your bank's credit standards for approving new
applications for loans secured by multifamily residential properties 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
12
16.0
6
15.0
6
17.1
Remained basically unchanged
54
72.0
27
67.5
27
77.1
Eased somewhat
9
12.0
7
17.5
2
5.7
Eased considerably
0
0.0
0
0.0
0
0.0
75
100.0
40
100.0
35
100.0
Total
13. Apart from normal seasonal variation, how has demand for construction and land
development loans changed over the past three months? (Please consider the number of requests
for new spot loans, for disbursement of funds under existing loan commitments, and for new or
increased credit lines.)
All Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
Substantially stronger
0
0.0
0
0.0
0
0.0
Moderately stronger
19
25.3
8
20.0
11
31.4
About the same
52
69.3
30
75.0
22
62.9
Moderately weaker
4
5.3
2
5.0
2
5.7
Substantially weaker
0
0.0
0
0.0
0
0.0
75
100.0
40
100.0
35
100.0
Total
14. Apart from normal seasonal variation, how has demand for loans secured by nonfarm
nonresidential properties changed over the past three months? (Please consider the number of
requests for new spot loans, for disbursement of funds under existing loan commitments, and for
new or increased credit lines.)
All Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
Substantially stronger
1
1.3
1
2.4
0
0.0
Moderately stronger
10
13.2
7
17.1
3
8.6
About the same
63
82.9
32
78.0
31
88.6
Moderately weaker
2
2.6
1
2.4
1
2.9
Substantially weaker
0
0.0
0
0.0
0
0.0
76
100.0
41
100.0
35
100.0
Total
15. Apart from normal seasonal variation, how has demand for loans secured by multifamily
residential properties changed over the past three months? (Please consider the number of
requests for new spot loans, for disbursement of funds under existing loan commitments, and for
new or increased credit lines.)
All Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
Substantially stronger
2
2.7
1
2.5
1
2.9
Moderately stronger
18
24.0
9
22.5
9
25.7
About the same
46
61.3
23
57.5
23
65.7
Moderately weaker
9
12.0
7
17.5
2
5.7
Substantially weaker
0
0.0
0
0.0
0
0.0
75
100.0
40
100.0
35
100.0
Total
16. Over the past year, how has your bank changed the following policies on CRE loans? (Please
assign each policy a number between 1 and 5 using the following scale: 1=tightened considerably,
2=tightened somewhat, 3=remained basically unchanged, 4=eased somewhat, 5=eased
considerably.)
a. Maximum loan size
All Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
Tightened considerably
1
1.3
0
0.0
1
2.9
Tightened somewhat
2
2.6
0
0.0
2
5.7
Remained basically unchanged
55
72.4
25
61.0
30
85.7
Eased somewhat
18
23.7
16
39.0
2
5.7
0
0.0
0
0.0
0
0.0
76
100.0
41
100.0
35
100.0
Eased considerably
Total
b. Maximum loan maturity
All Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
Tightened considerably
1
1.3
0
0.0
1
2.9
Tightened somewhat
2
2.6
0
0.0
2
5.7
Remained basically unchanged
57
75.0
28
68.3
29
82.9
Eased somewhat
16
21.1
13
31.7
3
8.6
0
0.0
0
0.0
0
0.0
76
100.0
41
100.0
35
100.0
Eased considerably
Total
c. Spreads of loan rates over your bank's cost of funds (wider spreads=tightened;
narrower spreads=eased)
All Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
Tightened considerably
1
1.3
0
0.0
1
2.9
Tightened somewhat
5
6.6
2
4.9
3
8.6
Remained basically unchanged
36
47.4
12
29.3
24
68.6
Eased somewhat
32
42.1
25
61.0
7
20.0
2
2.6
2
4.9
0
0.0
76
100.0
41
100.0
35
100.0
Eased considerably
Total
d. Loan-to-value ratios
All Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
Tightened considerably
1
1.3
0
0.0
1
2.9
Tightened somewhat
2
2.6
0
0.0
2
5.7
69
90.8
38
92.7
31
88.6
Eased somewhat
4
5.3
3
7.3
1
2.9
Eased considerably
0
0.0
0
0.0
0
0.0
76
100.0
41
100.0
35
100.0
Remained basically unchanged
Total
e. Debt-service coverage ratios
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
5.3
0
0.0
4
11.4
68
89.5
37
90.2
31
88.6
Eased somewhat
3
3.9
3
7.3
0
0.0
Eased considerably
1
1.3
1
2.4
0
0.0
76
100.0
41
100.0
35
100.0
Remained basically unchanged
Total
f. Market areas served (reduced market areas=tightened; expanded market
areas=eased)
All Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
Tightened considerably
1
1.3
0
0.0
1
2.9
Tightened somewhat
1
1.3
1
2.4
0
0.0
Remained basically unchanged
63
82.9
34
82.9
29
82.9
Eased somewhat
11
14.5
6
14.6
5
14.3
0
0.0
0
0.0
0
0.0
76
100.0
41
100.0
35
100.0
Eased considerably
Total
17. If your bank has tightened or eased its credit policies on CRE loans over the past year (as
described in question 16), please select the 4 most important reasons among all the possible
reasons listed below and rank them in order of importance. (Please respond to either 17A, 17B, or
both as appropriate and rank the 4 most important reasons using a scale ranging from 4=the most
important to 1=the least important.)
A. Possible reasons for tightening credit policies on CRE loans over the past year:
All
Respondents
Large
Banks
Other
Banks
Mean
Mean
Mean
Less favorable or more uncertain outlook for CRE property
prices
2.1
1.0
2.3
Less favorable or more uncertain outlook for vacancy rates
or other fundamentals on CRE properties
3.2
3.0
3.2
Less favorable or more uncertain capitalization rates (the
ratio of current net operating income to the original sale
price or current market value) on CRE properties
2.1
2.0
2.1
Less aggressive competition from other banks or non-bank
lenders (other financial intermediaries or the capital markets)
4.0
4.0
-
Reduced tolerance for risk
3.0
-
3.0
Decreased ability to securitize CRE loans
2.5
-
2.5
Increased concerns about capital adequacy, liquidity
position, or regulation more broadly
2.2
3.0
2.0
Other
3.5
4.0
3.0
Number of respondents
12
3
9
B. Possible reasons for easing credit policies on CRE loans over the past year:
All
Respondents
Large
Banks
Other
Banks
Mean
Mean
Mean
More favorable or less uncertain outlook for CRE property
prices
2.5
2.4
2.6
More favorable or less uncertain outlook for vacancy rates or
other fundamentals on CRE properties
2.5
2.5
2.7
More favorable or less uncertain capitalization rates (the
ratio of current net operating income to the original sale
price or current market value) on CRE properties
1.7
1.6
2.0
More aggressive competition from other banks or non-bank
lenders (other financial intermediaries or the capital markets)
3.2
3.4
2.6
Increased tolerance for risk
2.5
2.8
1.8
Increased ability to securitize CRE loans
1.7
1.0
3.0
Decreased concerns about capital adequacy, liquidity
position, or regulation more broadly
2.3
2.2
3.0
Other
3.0
2.0
4.0
Number of respondents
40
30
10
18. For each of the following categories of CRE lending, and assuming economic activity
progresses in line with consensus forecasts, please indicate how you expect your bank's pace of
loan originations during 2015 will change relative to its pace in 2014. (Please assign to each
category a number between 1 and 6 using the following scale: 1=I expect the pace of originations
at my bank will decline substantially; 2=I expect the pace of originations at my bank will decline
somewhat; 3=I expect the pace of originations at my bank will be about the same; 4=I expect the
pace of originations at my bank will increase somewhat; 5=I expect the pace of originations at my
bank will increase substantially; 6=My bank does not originate this type of loan.)
a. Loans secured by nonfarm nonresidential properties
All
Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
I expect the pace of originations at my bank
will decline substantially
2
2.6
2
4.9
0
0.0
I expect the pace of originations at my bank
will decline somewhat
7
9.2
2
4.9
5
14.3
I expect the pace of originations at my bank
will be about the same
46
60.5
24
58.5
22
62.9
I expect the pace of originations at my bank
will increase somewhat
20
26.3
12
29.3
8
22.9
I expect the pace of originations at my bank
will increase substantially
0
0.0
0
0.0
0
0.0
My bank does not originate this type of loan
1
1.3
1
2.4
0
0.0
76
100.0
41
100.0
35
100.0
Total
b. Loans secured by multifamily (5 or more) residential properties
All
Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
I expect the pace of originations at my bank
will decline substantially
1
1.3
1
2.5
0
0.0
I expect the pace of originations at my bank
will decline somewhat
22
29.3
14
35.0
8
22.9
I expect the pace of originations at my bank
will be about the same
34
45.3
17
42.5
17
48.6
I expect the pace of originations at my bank
will increase somewhat
15
20.0
6
15.0
9
25.7
I expect the pace of originations at my bank
will increase substantially
2
2.7
1
2.5
1
2.9
My bank does not originate this type of loan
1
1.3
1
2.5
0
0.0
75
100.0
40
100.0
35
100.0
Total
c. 1-4 family residential construction loans
All
Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
I expect the pace of originations at my bank
will decline substantially
0
0.0
0
0.0
0
0.0
I expect the pace of originations at my bank
will decline somewhat
2
2.7
1
2.6
1
2.9
I expect the pace of originations at my bank
will be about the same
45
61.6
27
69.2
18
52.9
I expect the pace of originations at my bank
will increase somewhat
19
26.0
4
10.3
15
44.1
I expect the pace of originations at my bank
will increase substantially
0
0.0
0
0.0
0
0.0
My bank does not originate this type of loan
7
9.6
7
17.9
0
0.0
73
100.0
39
100.0
34
100.0
Total
d. Other construction loans and all land development and other land loans
All
Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
I expect the pace of originations at my bank
will decline substantially
1
1.4
1
2.6
0
0.0
I expect the pace of originations at my bank
will decline somewhat
9
12.2
5
12.8
4
11.4
I expect the pace of originations at my bank
will be about the same
53
71.6
29
74.4
24
68.6
I expect the pace of originations at my bank
will increase somewhat
9
12.2
2
5.1
7
20.0
I expect the pace of originations at my bank
will increase substantially
0
0.0
0
0.0
0
0.0
My bank does not originate this type of loan
2
2.7
2
5.1
0
0.0
74
100.0
39
100.0
35
100.0
Total
Note: Beginning with the January 2015 survey, the loan categories referred to in the questions
regarding changes in credit standards and demand for residential mortgage loans have been
revised to reflect the Consumer Financial Protection Bureau’s qualified mortgage rules.
Questions 19-20 ask about seven categories of residential mortgage loans at your bank:
Government-Sponsored Enterprise eligible (GSE-eligible) residential mortgages, government
residential mortgages, Qualified Mortgage non-jumbo non-GSE-eligible (QM non-jumbo,
non-GSE-eligible) residential mortgages, QM jumbo residential mortgages, non-QM jumbo
residential mortgages, non-QM non-jumbo residential mortgages, and subprime residential
mortgages.
For the purposes of this survey, please use the following definitions of these loan categories and
include first-lien closed-end loans to purchase homes only. The loan categories have been defined
so that every first-lien closed-end residential mortgage loan used for home purchase fits into one
of the following seven categories:
The GSE-eligible category of residential mortgages includes loans that meet the
underwriting guidelines, including loan limit amounts, of the GSEs - Fannie Mae and
Freddie Mac.
The government category of residential mortgages includes loans that are insured by the
Federal Housing Administration, guaranteed by the Department of Veterans Affairs, or
originated under government programs, including the U.S. Department of Agriculture home
loan programs.
The QM non-jumbo, non-GSE-eligible category of residential mortgages includes loans
that satisfy the standards for a qualified mortgage and have loan balances that are below
the loan limit amounts set by the GSEs but otherwise do not meet the GSE underwriting
guidelines.
The QM jumbo category of residential mortgages includes loans that satisfy the standards
for a qualified mortgage but have loan balances that are above the loan limit amount set by
the GSEs.
The non-QM jumbo category of residential mortgages includes loans that do not satisfy the
standards for a qualified mortgage and have loan balances that are above the loan limit
amount set by the GSEs.
The non-QM non-jumbo category of residential mortgages includes loans that do not
satisfy the standards for a qualified mortgage and have loan balances that are below the
loan limit amount set by the GSEs.(Please exclude loans classified by your bank as
subprime in this category.)
The subprime category of residential mortgages includes loans classified by your bank as
subprime. This category typically includes loans made to borrowers with weakened credit
histories that include payment delinquencies, charge-offs, judgements, and/or bankruptcies;
reduced repayment capacity as measured by credit scores or debt-to-income ratios; or
incomplete credit histories.
Question 19 deals with changes in your bank's credit standards for loans in each of the seven
loan categories over the past three months. 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. Question 20 deals with changes in demand for loans in each of the seven loan
categories over the past three months.
19. Over the past three months, how have your bank's credit standards for approving applications
from individuals for mortgage loans to purchase homes changed? (Please consider only new
originations as opposed to the refinancing of existing mortgages.)
A. Credit standards on mortgage loans that your bank categorizes as GSE-eligible
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
2
2.9
1
2.9
1
2.9
Remained basically unchanged
52
76.5
24
70.6
28
82.4
Eased somewhat
13
19.1
8
23.5
5
14.7
1
1.5
1
2.9
0
0.0
68
100.0
34
100.0
34
100.0
Eased considerably
Total
For this question, 4 respondents answered “My bank does not originate GSE-eligible
residential mortgages.”
B. Credit standards on mortgage loans that your bank categorizes as government 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
1
1.6
1
3.1
0
0.0
53
84.1
27
84.4
26
83.9
Eased somewhat
8
12.7
3
9.4
5
16.1
Eased considerably
1
1.6
1
3.1
0
0.0
63
100.0
32
100.0
31
100.0
Remained basically unchanged
Total
For this question, 9 respondents answered “My bank does not originate government
residential mortgages.”
C. Credit standards on mortgage loans that your bank categorizes as QM non-jumbo,
non-GSE-eligible 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
2
3.4
1
3.4
1
3.4
54
93.1
28
96.6
26
89.7
Eased somewhat
2
3.4
0
0.0
2
6.9
Eased considerably
0
0.0
0
0.0
0
0.0
58
100.0
29
100.0
29
100.0
Remained basically unchanged
Total
For this question, 14 respondents answered “My bank does not originate QM
non-jumbo, non-GSE-eligible residential mortgages.”
D. Credit standards on mortgage loans that your bank categorizes as QM jumbo 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
1
1.5
1
2.9
0
0.0
58
86.6
28
82.4
30
90.9
Eased somewhat
8
11.9
5
14.7
3
9.1
Eased considerably
0
0.0
0
0.0
0
0.0
67
100.0
34
100.0
33
100.0
Remained basically unchanged
Total
For this question, 5 respondents answered “My bank does not originate QM jumbo
residential mortgages.”
E. Credit standards on mortgage loans that your bank categorizes as non-QM jumbo
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
1
1.6
0
0.0
1
3.6
58
92.1
31
88.6
27
96.4
Eased somewhat
4
6.3
4
11.4
0
0.0
Eased considerably
0
0.0
0
0.0
0
0.0
63
100.0
35
100.0
28
100.0
Remained basically unchanged
Total
For this question, 9 respondents answered “My bank does not originate non-QM
jumbo residential mortgages.”
F. Credit standards on mortgage loans that your bank categorizes as non-QM non-jumbo
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
0
0.0
0
0.0
0
0.0
58
98.3
31
96.9
27
100.0
Eased somewhat
1
1.7
1
3.1
0
0.0
Eased considerably
0
0.0
0
0.0
0
0.0
59
100.0
32
100.0
27
100.0
Remained basically unchanged
Total
For this question, 13 respondents answered “My bank does not originate non-QM
non-jumbo residential mortgages.”
G. Credit standards on mortgage loans that your bank categorizes as subprime residential
mortgages have:
All Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
Tightened considerably
0
0.0
0
0.0
0
0.0
Tightened somewhat
1
16.7
0
0.0
1
20.0
Remained basically unchanged
5
83.3
1
100.0
4
80.0
Eased somewhat
0
0.0
0
0.0
0
0.0
Eased considerably
0
0.0
0
0.0
0
0.0
Total
6
100.0
1
100.0
5
100.0
For this question, 66 respondents answered “My bank does not originate subprime
residential mortgages.”
20. Apart from normal seasonal variation, how has demand for mortgages to purchase homes
changed over the past three months? (Please consider only applications for new originations as
opposed to applications for refinancing of existing mortgages.)
A. Demand for mortgages that your bank categorizes as GSE-eligible residential mortgages
was:
All Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
Substantially stronger
4
5.9
2
5.9
2
5.9
Moderately stronger
30
44.1
14
41.2
16
47.1
About the same
31
45.6
16
47.1
15
44.1
Moderately weaker
3
4.4
2
5.9
1
2.9
Substantially weaker
0
0.0
0
0.0
0
0.0
68
100.0
34
100.0
34
100.0
Total
For this question, 4 respondents answered “My bank does not originate GSE-eligible
residential mortgages.”
B. Demand for mortgages that your bank categorizes as government 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
29
46.0
15
46.9
14
45.2
About the same
30
47.6
14
43.8
16
51.6
Moderately weaker
4
6.3
3
9.4
1
3.2
Substantially weaker
0
0.0
0
0.0
0
0.0
63
100.0
32
100.0
31
100.0
Total
For this question, 9 respondents answered “My bank does not originate government
residential mortgages.”
C. Demand for mortgages that your bank categorizes as QM non-jumbo, non-GSE-eligible
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
18
31.0
9
31.0
9
31.0
About the same
36
62.1
18
62.1
18
62.1
Moderately weaker
3
5.2
2
6.9
1
3.4
Substantially weaker
1
1.7
0
0.0
1
3.4
58
100.0
29
100.0
29
100.0
Total
For this question, 14 respondents answered “My bank does not originate QM
non-jumbo, non-GSE-eligible residential mortgages.”
D. Demand for mortgages that your bank categorizes as QM jumbo residential mortgages
was:
All Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
Substantially stronger
3
4.5
2
5.9
1
3.0
Moderately stronger
15
22.4
9
26.5
6
18.2
About the same
45
67.2
20
58.8
25
75.8
Moderately weaker
4
6.0
3
8.8
1
3.0
Substantially weaker
0
0.0
0
0.0
0
0.0
67
100.0
34
100.0
33
100.0
Total
For this question, 5 respondents answered “My bank does not originate QM jumbo
residential mortgages.”
E. Demand for mortgages that your bank categorizes as non-QM jumbo residential
mortgages was:
All Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
Substantially stronger
2
3.2
2
5.7
0
0.0
Moderately stronger
9
14.3
6
17.1
3
10.7
47
74.6
24
68.6
23
82.1
Moderately weaker
3
4.8
3
8.6
0
0.0
Substantially weaker
2
3.2
0
0.0
2
7.1
63
100.0
35
100.0
28
100.0
About the same
Total
For this question, 9 respondents answered “My bank does not originate non-QM
jumbo residential mortgages.”
F. Demand for mortgages that your bank categorizes as non-QM non-jumbo 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
13.6
6
18.8
2
7.4
48
81.4
24
75.0
24
88.9
Moderately weaker
2
3.4
2
6.3
0
0.0
Substantially weaker
1
1.7
0
0.0
1
3.7
59
100.0
32
100.0
27
100.0
About the same
Total
For this question, 13 respondents answered “My bank does not originate non-QM
non-jumbo residential mortgages.”
G. Demand for mortgages that your bank categorizes as subprime residential mortgages
was:
All Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
Substantially stronger
0
0.0
0
0.0
0
0.0
Moderately stronger
0
0.0
0
0.0
0
0.0
About the same
6
100.0
1
100.0
5
100.0
Moderately weaker
0
0.0
0
0.0
0
0.0
Substantially weaker
0
0.0
0
0.0
0
0.0
Total
6
100.0
1
100.0
5
100.0
For this question, 66 respondents answered “My bank does not originate subprime
residential mortgages.”
Questions 21-22 ask about revolving home equity lines of credit at your bank. Question 21 deals
with changes in your bank's credit standards over the past three months. Question 22 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.
21. 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
1
1.4
0
0.0
1
2.9
Tightened somewhat
1
1.4
1
2.6
0
0.0
Remained basically unchanged
60
83.3
33
86.8
27
79.4
Eased somewhat
10
13.9
4
10.5
6
17.6
0
0.0
0
0.0
0
0.0
72
100.0
38
100.0
34
100.0
Eased considerably
Total
22. Apart from normal seasonal variation, how has demand for revolving home equity lines of
credit changed over the past three months? (Please consider only funds actually disbursed as
opposed to requests for new or increased lines of credit.)
All Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
Substantially stronger
1
1.4
0
0.0
1
2.9
Moderately stronger
16
22.2
7
18.4
9
26.5
About the same
47
65.3
27
71.1
20
58.8
Moderately weaker
8
11.1
4
10.5
4
11.8
Substantially weaker
0
0.0
0
0.0
0
0.0
72
100.0
38
100.0
34
100.0
Total
On November 20, 2014, Fannie Mae and Freddie Mac, at the direction of the Federal Housing
Finance Agency, issued guidelines on the definition of life-of-loan representation and warranty
exclusions. The following question asks about changes in your bank's lending policies in response
to these guidelines.
23. How much more or less likely is your bank to approve an application for a 30-year fixed-rate
GSE-eligible home purchase mortgage loan to a borrower with the stated FICO score (or
equivalent) and down payment in the current environment than it would have been if the
guidelines had not been issued? 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 20
percent
All Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
Much less likely
4
6.3
1
3.0
3
10.0
Somehwat less likely
3
4.8
0
0.0
3
10.0
52
82.5
29
87.9
23
76.7
Somewhat more likely
4
6.3
3
9.1
1
3.3
Much more likely
0
0.0
0
0.0
0
0.0
63
100.0
33
100.0
30
100.0
About the same
Total
b. 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
0
0.0
0
0.0
0
0.0
Somehwat less likely
2
3.2
1
3.0
1
3.3
56
88.9
30
90.9
26
86.7
Somewhat more likely
4
6.3
2
6.1
2
6.7
Much more likely
1
1.6
0
0.0
1
3.3
63
100.0
33
100.0
30
100.0
About the same
Total
c. 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
6
9.5
1
3.0
5
16.7
Somehwat less likely
7
11.1
1
3.0
6
20.0
46
73.0
28
84.8
18
60.0
Somewhat more likely
4
6.3
3
9.1
1
3.3
Much more likely
0
0.0
0
0.0
0
0.0
63
100.0
33
100.0
30
100.0
About the same
Total
d. 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
1
1.6
1
3.0
0
0.0
Somehwat less likely
1
1.6
0
0.0
1
3.3
56
88.9
28
84.8
28
93.3
Somewhat more likely
4
6.3
4
12.1
0
0.0
Much more likely
1
1.6
0
0.0
1
3.3
63
100.0
33
100.0
30
100.0
About the same
Total
e. 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
0
0.0
0
0.0
0
0.0
Somehwat less likely
1
1.6
0
0.0
1
3.2
56
87.5
30
90.9
26
83.9
Somewhat more likely
6
9.4
3
9.1
3
9.7
Much more likely
1
1.6
0
0.0
1
3.2
64
100.0
33
100.0
31
100.0
About the same
Total
f. A borrower with a FICO score (or equivalent) of 620 and a down payment of 5
percent
All Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
Much less likely
9
14.3
2
6.1
7
23.3
Somehwat less likely
3
4.8
0
0.0
3
10.0
47
74.6
28
84.8
19
63.3
Somewhat more likely
4
6.3
3
9.1
1
3.3
Much more likely
0
0.0
0
0.0
0
0.0
63
100.0
33
100.0
30
100.0
About the same
Total
g. A borrower with a FICO score (or equivalent) of 680 and a down payment of 5
percent
All Respondents
Large Banks
Other Banks
Banks Percent Banks Percent Banks Percent
Much less likely
1
1.6
1
3.0
0
0.0
Somehwat less likely
5
7.9
1
3.0
4
13.3
50
79.4
28
84.8
22
73.3
Somewhat more likely
7
11.1
3
9.1
4
13.3
Much more likely
0
0.0
0
0.0
0
0.0
63
100.0
33
100.0
30
100.0
About the same
Total
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
0
0.0
0
0.0
0
0.0
Somewhat more willing
7
9.7
4
10.8
3
8.6
64
88.9
33
89.2
31
88.6
Somewhat less willing
1
1.4
0
0.0
1
2.9
Much less willing
0
0.0
0
0.0
0
0.0
72
100.0
37
100.0
35
100.0
About unchanged
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
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
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
1
1.5
0
0.0
1
2.9
60
90.9
28
87.5
32
94.1
Eased somewhat
5
7.6
4
12.5
1
2.9
Eased considerably
0
0.0
0
0.0
0
0.0
66
100.0
32
100.0
34
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
1
1.4
1
2.7
0
0.0
66
91.7
32
86.5
34
97.1
Eased somewhat
5
6.9
4
10.8
1
2.9
Eased considerably
0
0.0
0
0.0
0
0.0
72
100.0
37
100.0
35
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
0
0.0
0
0.0
0
0.0
49
94.2
28
90.3
21
100.0
Eased somewhat
3
5.8
3
9.7
0
0.0
Eased considerably
0
0.0
0
0.0
0
0.0
52
100.0
31
100.0
21
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
3.8
2
6.5
0
0.0
50
96.2
29
93.5
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
52
100.0
31
100.0
21
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
0
0.0
0
0.0
0
0.0
52
100.0
31
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
52
100.0
31
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
50
96.2
29
93.5
21
100.0
Eased somewhat
2
3.8
2
6.5
0
0.0
Eased considerably
0
0.0
0
0.0
0
0.0
52
100.0
31
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
3
5.9
2
6.7
1
4.8
46
90.2
27
90.0
19
90.5
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
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
62
92.5
31
93.9
31
91.2
Eased somewhat
5
7.5
2
6.1
3
8.8
Eased considerably
0
0.0
0
0.0
0
0.0
67
100.0
33
100.0
34
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
4
6.0
4
12.1
0
0.0
Remained basically unchanged
51
76.1
23
69.7
28
82.4
Eased somewhat
11
16.4
5
15.2
6
17.6
1
1.5
1
3.0
0
0.0
67
100.0
33
100.0
34
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
1
1.5
0
0.0
1
2.9
65
97.0
32
97.0
33
97.1
Eased somewhat
1
1.5
1
3.0
0
0.0
Eased considerably
0
0.0
0
0.0
0
0.0
67
100.0
33
100.0
34
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
64
95.5
30
90.9
34
100.0
Eased somewhat
3
4.5
3
9.1
0
0.0
Eased considerably
0
0.0
0
0.0
0
0.0
67
100.0
33
100.0
34
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
1.5
0
0.0
1
2.9
65
97.0
32
97.0
33
97.1
Eased somewhat
1
1.5
1
3.0
0
0.0
Eased considerably
0
0.0
0
0.0
0
0.0
67
100.0
33
100.0
34
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
1
1.4
0
0.0
1
2.9
71
98.6
37
100.0
34
97.1
Eased somewhat
0
0.0
0
0.0
0
0.0
Eased considerably
0
0.0
0
0.0
0
0.0
72
100.0
37
100.0
35
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
2
2.8
2
5.4
0
0.0
64
88.9
34
91.9
30
85.7
Eased somewhat
6
8.3
1
2.7
5
14.3
Eased considerably
0
0.0
0
0.0
0
0.0
72
100.0
37
100.0
35
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
72
100.0
37
100.0
35
100.0
Eased somewhat
0
0.0
0
0.0
0
0.0
Eased considerably
0
0.0
0
0.0
0
0.0
72
100.0
37
100.0
35
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
71
98.6
36
97.3
35
100.0
Eased somewhat
1
1.4
1
2.7
0
0.0
Eased considerably
0
0.0
0
0.0
0
0.0
72
100.0
37
100.0
35
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
2.8
0
0.0
2
5.7
70
97.2
37
100.0
33
94.3
Eased somewhat
0
0.0
0
0.0
0
0.0
Eased considerably
0
0.0
0
0.0
0
0.0
72
100.0
37
100.0
35
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
0
0.0
0
0.0
0
0.0
Moderately stronger
8
15.4
5
16.1
3
14.3
41
78.8
25
80.6
16
76.2
Moderately weaker
3
5.8
1
3.2
2
9.5
Substantially weaker
0
0.0
0
0.0
0
0.0
52
100.0
31
100.0
21
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
1
1.5
1
3.0
0
0.0
Moderately stronger
13
19.4
5
15.2
8
23.5
About the same
45
67.2
22
66.7
23
67.6
Moderately weaker
8
11.9
5
15.2
3
8.8
Substantially weaker
0
0.0
0
0.0
0
0.0
67
100.0
33
100.0
34
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
0
0.0
0
0.0
0
0.0
Moderately stronger
2
2.8
1
2.7
1
2.9
67
93.1
35
94.6
32
91.4
Moderately weaker
3
4.2
1
2.7
2
5.7
Substantially weaker
0
0.0
0
0.0
0
0.0
72
100.0
37
100.0
35
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, 2014. The combined assets of the 41 large banks totaled $9.1 trillion, compared to
$9.4 trillion for the entire panel of 76 banks, and $ 12.9 trillion for all domestically chartered,
federally insured commercial banks.
1
Questions 1-6 ask about commercial and industrial (C&I) loans at your bank. Questions 1-3 deal
with changes in your bank's lending policies over the past three months. Questions 4-5 deal with
changes in demand for C&I loans over the past three months. Question 6 asks about changes in
prospective demand for C&I loans at your bank, as indicated by the volume of recent inquiries
about the availability of new credit lines or increases in existing lines. If your bank's lending
policies have not changed over the past three months, please report them as unchanged even if
the policies are either restrictive or accommodative relative to longer-term norms. If your bank's
policies have tightened or eased over the past three months, please so report them regardless of
how they stand relative to longer-term norms. Also, please report changes in enforcement of
existing policies as changes in policies.
1. Over the past three months, how have your bank's credit standards for approving applications
for C&I loans or credit lines—other than those to be used to finance mergers and acquisitions
—changed?
All Respondents
Banks Percent
Tightened considerably
0
0.0
Tightened somewhat
1
4.3
20
87.0
Eased somewhat
2
8.7
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
0
0.0
20
87.0
Eased somewhat
3
13.0
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
0
0.0
22
100.0
Eased somewhat
0
0.0
Eased considerably
0
0.0
22
100.0
Remained basically unchanged
Total
c. Costs of credit lines
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
d. Spreads of loan rates over your bank's cost of funds (wider spreads=tightened,
narrower spreads=eased)
All Respondents
Banks Percent
Tightened considerably
0
0.0
Tightened somewhat
1
4.5
18
81.8
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
2
9.1
17
77.3
Eased somewhat
3
13.6
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
20
90.9
Eased somewhat
2
9.1
Eased considerably
0
0.0
22
100.0
Remained basically unchanged
Total
g. Collateralization requirements
All Respondents
Banks Percent
Tightened considerably
0
0.0
Tightened somewhat
0
0.0
22
100.0
Eased somewhat
0
0.0
Eased considerably
0
0.0
22
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
Responses are not reported when the number of respondents is 3 or fewer.
b. Less favorable or more uncertain economic outlook
Responses are not reported when the number of respondents is 3 or fewer.
c. Worsening of industry-specific problems (please specify industries)
Responses are not reported when the number of respondents is 3 or fewer.
d. Less aggressive competition from other banks or nonbank lenders (other financial
intermediaries or the capital markets)
Responses are not reported when the number of respondents is 3 or fewer.
e. Reduced tolerance for risk
Responses are not reported when the number of respondents is 3 or fewer.
f. Decreased liquidity in the secondary market for these loans
Responses are not reported when the number of respondents is 3 or fewer.
g. Deterioration in your bank's current or expected liquidity position
Responses are not reported when the number of respondents is 3 or fewer.
h. Increased concerns about the potential effects of legislative changes, supervisory
actions, or accounting standards
Responses are not reported when the number of respondents is 3 or fewer.
B. Possible reasons for easing credit standards or loan terms:
a. Improvement in your bank's current or expected capital position
All Respondents
Banks Percent
Not important
3
75.0
Somewhat important
1
25.0
Very important
0
0.0
Total
4
100.0
b. More favorable or less uncertain economic outlook
All Respondents
Banks Percent
Not important
2
50.0
Somewhat important
2
50.0
Very important
0
0.0
Total
4
100.0
c. Improvement in industry-specific problems (please specify industries)
All Respondents
Banks Percent
Not important
3
75.0
Somewhat important
0
0.0
Very important
1
25.0
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
0
0.0
Somewhat important
0
0.0
Very important
4
100.0
Total
4
100.0
e. Increased tolerance for risk
All Respondents
Banks Percent
Not important
2
50.0
Somewhat important
2
50.0
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
3
75.0
Somewhat important
1
25.0
Very important
0
0.0
Total
4
100.0
g. Improvement in your bank's current or expected liquidity position
All Respondents
Banks Percent
Not important
4
100.0
Somewhat important
0
0.0
Very important
0
0.0
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
2
8.7
18
78.3
Moderately weaker
3
13.0
Substantially weaker
0
0.0
23
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
Responses are not reported when the number of respondents is 3 or fewer.
b. Customer accounts receivable financing needs increased
Responses are not reported when the number of respondents is 3 or fewer.
c. Customer investment in plant or equipment increased
Responses are not reported when the number of respondents is 3 or fewer.
d. Customer internally generated funds decreased
Responses are not reported when the number of respondents is 3 or fewer.
e. Customer merger or acquisition financing needs increased
Responses are not reported when the number of respondents is 3 or fewer.
f. Customer borrowing shifted to your bank from other bank or nonbank sources
because these other sources became less attractive
Responses are not reported when the number of respondents is 3 or fewer.
g. Customers' precautionary demand for cash and liquidity increased
Responses are not reported when the number of respondents is 3 or fewer.
B. If weaker loan demand (answer 4 or 5 to question 4), possible reasons:
a. Customer inventory financing needs decreased
Responses are not reported when the number of respondents is 3 or fewer.
b. Customer accounts receivable financing needs decreased
Responses are not reported when the number of respondents is 3 or fewer.
c. Customer investment in plant or equipment decreased
Responses are not reported when the number of respondents is 3 or fewer.
d. Customer internally generated funds increased
Responses are not reported when the number of respondents is 3 or fewer.
e. Customer merger or acquisition financing needs decreased
Responses are not reported when the number of respondents is 3 or fewer.
f. Customer borrowing shifted from your bank to other bank or nonbank sources
because these other sources became more attractive
Responses are not reported when the number of respondents is 3 or fewer.
g. Customers’ precautionary demand for cash and liquidity decreased
Responses are not reported when the number of respondents is 3 or fewer.
6. At your bank, apart from normal seasonal variation, how has the number of inquiries from
potential business borrowers regarding the availability and terms of new credit lines or increases
in existing lines changed over the past three months? (Please consider only inquiries for
additional or increased C&I lines as opposed to the refinancing of existing loans.)
All Respondents
Banks Percent
The number of inquiries has increased substantially
0
0.0
The number of inquiries has increased moderately
2
8.7
The number of inquiries has stayed about the same
18
78.3
The number of inquiries has decreased moderately
3
13.0
The number of inquiries has decreased substantially
0
0.0
23
100.0
Total
Recent declines in oil prices may have led to strains in firms involved in oil and natural gas
drilling/extraction and in the companies that provide support to those firms. Question 7 asks you
to indicate what fraction of C&I loans held on your books are made to firms in the oil and natural
gas drilling/extraction sector. Question 8 asks about your outlook for delinquencies and
charge-offs on such loans. Question 9 asks about changes in credit policies made by your bank in
response to developments in the oil and natural gas drilling/extraction sector.
7. Approximately what fraction of C&I loans currently outstanding on your bank's books were
made to firms in the oil and natural gas drilling/extraction sector?
All Respondents
Banks Percent
More than 30 percent
0
0.0
More than 20 but less than 30 percent
0
0.0
More than 10 but less than 20 percent
9
45.0
Less than 10 percent
11
55.0
Total
20
100.0
For this question, 1 respondent answered “My bank does not make loans or extend
lines of credit to firms in the oil and natural gas drilling/extraction sector.”
8. Assuming that economic activity progresses in line with consensus forecasts, and energy
commodity prices evolve in line with current future prices, what is your outlook for delinquencies
and charge- offs on your bank's loans to firms in the oil and natural gas drilling/extraction sector
over the remainder of 2015?
All Respondents
Banks Percent
Loan quality is likely to improve substantially
0
0.0
Loan quality is likely to improve somewhat
2
10.0
Loan quality is likely to remain around current levels
9
45.0
Loan quality is likely to deteriorate somewhat
9
45.0
Loan quality is likely to deteriorate substantially
0
0.0
20
100.0
Total
For this question, 1 respondent answered “My bank does not hold loans to firms in the
oil and natural gas drilling/extraction sector.”
9. Please indicate how important each of the following actions are in your bank's efforts to
mitigate risks of loan losses from loans made to firms in the oil and natural gas drilling/extraction
sector. (Please rate each possible action using the following scale: 1=not important, 2=somewhat
important, 3=very important).
a. Tightening underwriting policies on new loans or lines of credit made to firms in
this sector
All Respondents
Banks Percent
Not important
Somewhat important
Very important
Total
3
15.0
11
55.0
6
30.0
20
100.0
b. Enforcing material adverse change clauses or other convenants to limit draws on
existing credit lines to firms in this sector
All Respondents
Banks Percent
Not important
8
40.0
Somewhat important
8
40.0
Very important
4
20.0
20
100.0
Total
c. Reducing the size of existing credit lines to firms in this sector
All Respondents
Banks Percent
Not important
3
15.0
Somewhat important
8
40.0
Very important
9
45.0
20
100.0
Total
d. Restructuring outstanding loans to make them more robust to the revised outlook for
energy prices
All Respondents
Banks Percent
Not important
8
40.0
Somewhat important
6
30.0
Very important
6
30.0
20
100.0
Total
e. Requiring additional collateral to better secure loans or credit lines to firms in this
sector
All Respondents
Banks Percent
Not important
7
35.0
Somewhat important
9
45.0
Very important
4
20.0
20
100.0
Total
f. Tightening underwriting policies on new loans or credit lines made to firms in other
sectors
All Respondents
Banks Percent
Not important
14
70.0
Somewhat important
6
30.0
Very important
0
0.0
20
100.0
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
Banks Percent
Tightened considerably
0
0.0
Tightened somewhat
1
8.3
10
83.3
Eased somewhat
1
8.3
Eased considerably
0
0.0
12
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
Banks Percent
Substantially stronger
0
0.0
Moderately stronger
3
25.0
About the same
7
58.3
Moderately weaker
2
16.7
Substantially weaker
0
0.0
12
100.0
Total
12. Over the past year, how has your bank changed the following policies on CRE loans? (Please
assign each policy a number between 1 and 5 using the following scale: 1=tightened considerably,
2=tightened somewhat, 3=remained basically unchanged, 4=eased somewhat, 5=eased
considerably.)
a. Maximum loan size
All Respondents
Banks Percent
Tightened considerably
0
0.0
Tightened somewhat
1
9.1
Remained basically unchanged
8
72.7
Eased somewhat
2
18.2
Eased considerably
0
0.0
11
100.0
Total
b. Maximum loan maturity
All Respondents
Banks Percent
Tightened considerably
0
0.0
Tightened somewhat
0
0.0
11
100.0
Eased somewhat
0
0.0
Eased considerably
0
0.0
11
100.0
Remained basically unchanged
Total
c. Spreads of loan rates over your bank's cost of funds (wider spreads=tightened;
narrower spreads=eased)
All Respondents
Banks Percent
Tightened considerably
0
0.0
Tightened somewhat
0
0.0
Remained basically unchanged
5
45.5
Eased somewhat
5
45.5
Eased considerably
1
9.1
11
100.0
Total
d. Loan-to-value ratios
All Respondents
Banks Percent
Tightened considerably
0
0.0
Tightened somewhat
0
0.0
10
90.9
Eased somewhat
1
9.1
Eased considerably
0
0.0
11
100.0
Remained basically unchanged
Total
e. Debt-service coverage ratios
All Respondents
Banks Percent
Tightened considerably
0
0.0
Tightened somewhat
0
0.0
10
90.9
Eased somewhat
1
9.1
Eased considerably
0
0.0
11
100.0
Remained basically unchanged
Total
f. Market areas served (reduced market areas=tightened; expanded market
areas=eased)
All Respondents
Banks Percent
Tightened considerably
0
0.0
Tightened somewhat
0
0.0
10
90.9
Eased somewhat
1
9.1
Eased considerably
0
0.0
11
100.0
Remained basically unchanged
Total
13. If your bank has tightened or eased its credit policies on CRE loans over the past year (as
described in question 12), please select the 4 most important reasons among all the possible
reasons listed below and rank them in order of importance. (Please respond to either 13A, 13B, or
both as appropriate and rank the 4 most important reasons using a scale ranging from 4=the most
important to 1=the least important.)
A. Possible reasons for tightening credit policies on CRE loans over the past year:
Responses are not reported when the number of respondents is 3 or fewer.
B. Possible reasons for easing credit policies on CRE loans over the past year:
All
Respondents
Mean
More favorable or less uncertain outlook for CRE property prices
4.0
More favorable or less uncertain outlook for vacancy rates or other
fundamentals on CRE properties
2.8
More favorable or less uncertain capitalization rates (the ratio of current net
operating income to the original sale price or current market value) on CRE
properties
3.0
More aggressive competition from other banks or non-bank lenders (other
financial intermediaries or the capital markets)
2.0
Increased tolerance for risk
3.0
Increased ability to securitize CRE loans
-
Decreased concerns about capital adequacy, liquidity position, or regulation
more broadly
1.0
Other
1.0
Number of respondents
5
14. For each of the following categories of CRE lending, and assuming economic activity
progresses in line with consensus forecasts, please indicate how you expect your bank's pace of
loan originations during 2015 will change relative to its pace in 2014. (Please assign to each
category a number between 1 and 6 using the following scale: 1=I expect the pace of originations
at my bank will decline substantially; 2=I expect the pace of originations at my bank will decline
somewhat; 3=I expect the pace of originations at my bank will be about the same; 4=I expect the
pace of originations at my bank will increase somewhat; 5=I expect the pace of originations at my
bank will increase substantially; 6=My bank does not originate this type of loan.)
a. Loans secured by nonfarm nonresidential properties
All Respondents
Banks Percent
I expect the pace of originations at my bank will decline substantially
0
0.0
I expect the pace of originations at my bank will decline somewhat
1
8.3
I expect the pace of originations at my bank will be about the same
4
33.3
I expect the pace of originations at my bank will increase somewhat
4
33.3
I expect the pace of originations at my bank will increase substantially
1
8.3
My bank does not originate this type of loan
2
16.7
12
100.0
Total
b. Loans secured by multifamily (5 or more) residential properties
All Respondents
Banks Percent
I expect the pace of originations at my bank will decline substantially
0
0.0
I expect the pace of originations at my bank will decline somewhat
0
0.0
I expect the pace of originations at my bank will be about the same
6
54.5
I expect the pace of originations at my bank will increase somewhat
1
9.1
I expect the pace of originations at my bank will increase substantially
1
9.1
My bank does not originate this type of loan
3
27.3
11
100.0
Total
c. 1-4 family residential construction loans
All Respondents
Banks Percent
I expect the pace of originations at my bank will decline substantially
0
0.0
I expect the pace of originations at my bank will decline somewhat
0
0.0
I expect the pace of originations at my bank will be about the same
3
27.3
I expect the pace of originations at my bank will increase somewhat
0
0.0
I expect the pace of originations at my bank will increase substantially
0
0.0
My bank does not originate this type of loan
8
72.7
11
100.0
Total
d. Other construction loans and all land development and other land loans
All Respondents
Banks Percent
I expect the pace of originations at my bank will decline substantially
0
0.0
I expect the pace of originations at my bank will decline somewhat
1
8.3
I expect the pace of originations at my bank will be about the same
4
33.3
I expect the pace of originations at my bank will increase somewhat
2
16.7
I expect the pace of originations at my bank will increase substantially
1
8.3
My bank does not originate this type of loan
4
33.3
12
100.0
Total
1. As of December 31, 2014, the 23 respondents had combined assets of $1.3 trillion, compared to
$2.5 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.
| File Type | application/pdf |
| File Modified | 2015-05-22 |
| File Created | 2015-05-04 |