DIVISION OF MONETARY AFFAIRS

For release at 2:00 p.m. ET May 2, 2016

TO: HEADS OF RESEARCH AT ALL FEDERAL RESERVE BANKS

Enclosed for distribution to respondents is a national summary of the April 2016

Senior Loan Officer Opinion Survey on Bank Lending Practices.

Enclosures:

April 2016 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) 
1

The April 2016 Senior Loan Officer Opinion Survey on Bank Lending Practices

The April 2016 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 70 domestic banks and 

22 U.S. branches and agencies of foreign banks.2

Regarding loans to businesses, the April survey results indicated that, on balance, banks

tightened their standards on commercial and industrial (C&I) and commercial real estate (CRE) 

loans over the first quarter of 2016.

3 The survey results indicated that demand for C&I loans had 

weakened and that demand for CRE loans had strengthened during the first quarter on net. 

The first of two sets of special questions asked banks about lending to firms in the oil and natural 

gas drilling or extraction sector. The majority of domestic banks reported that loans to firms in 

this sector account for less than 5 percent of their outstanding C&I loans. In contrast, the 

majority of foreign banks reported that loans to firms in this sector account for more than 5 

percent of their outstanding C&I loans. On balance, both domestic and foreign banks expect 

delinquency and charge-off rates on such loans to deteriorate over 2016 and noted that they were 

undertaking several actions to mitigate the risk of loan losses. In addition, on balance, banks 

indicated that the credit quality of loans made to businesses and households located in regions of 

the United States that are dependent on the energy sector had deteriorated somewhat.

The second set of special questions asked banks about their CRE lending policies and 

securitization activity. On balance, banks reported leaving most CRE loan terms unchanged over 

the past year. In response to conditions in the commercial mortgage-backed securities (CMBS)

market over the past six months, on balance, banks reported increasing the volume of origination 

of CRE loans while decreasing the volume of CRE loan securitization. When asked about the 

 1 Respondent banks received the survey on or after March 29, 2016, and responses were due by 

April 12, 2016. 2 Unless otherwise indicated, this document refers to reports from domestic respondents. 3 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 equal the fraction of banks that reported stronger demand (“substantially stronger” or 

“moderately stronger”) minus the fraction of banks that reported weaker demand (“substantially weaker” or 

“moderately weaker”). For this summary, when standards, terms, or demand are said to have “remained basically 

unchanged,” the net percentage of respondent banks that reported either tightening or easing of standards or terms, 

or stronger or weaker demand, is between 0 and 5 percent; the modifier “modest” refers to net percentages between 

5 and 10 percent; the modifier “moderate” refers to net percentages between 10 and 20 percent; the modifier 

“significant” refers to net percentages between 20 and 50 percent; and the modifier “majority” refers to net 

percentages over 50 percent.
2

anticipated large amount of CRE loans originated in 2006 and currently held in CMBS that will 

need to be refinanced over the next six months, some banks noted they expect standards for these 

refinancings to be somewhat tighter than the standards they expect to apply to other CRE loans. 

Regarding loans to households, banks reported having eased lending standards on most types of 

residential real estate (RRE) mortgage loans, while demand for these loans strengthened over the 

first quarter. Modest net fractions of banks reported easing lending standards on credit cards and 

other consumer loans, whereas lending standards for auto loans remained basically unchanged.

Over the first quarter, banks reported stronger demand across all consumer loan categories. 

Lending to Businesses

(Table 1, questions 1–23; Table 2, questions 1–18)

Questions on commercial and industrial lending. On balance, a moderate net fraction of 

banks reported a tightening of lending standards for C&I loans to large and middle-market firms 

over the past three months.4

 Meanwhile, only a modest net fraction of banks reported tightening 

lending standards for C&I loans to small firms. Banks reported that they tightened some C&I 

loan terms for large and middle-market firms: A moderate net fraction of banks reported that 

they had increased premiums charged on riskier loans, a modest net fraction of banks reported 

that loan covenants had tightened, and most other terms to such firms remained basically 

unchanged on net. Banks reported mixed responses regarding changes in loan terms for small 

firms. A majority of the domestic respondents that tightened either standards or terms on C&I 

loans over the past three months cited a less favorable or more uncertain economic outlook as 

well as a worsening of industry-specific problems affecting borrowers as important reasons. 

Meanwhile, a significant net fraction of foreign respondents reported a tightening of lending 

standards for C&I loans.

Regarding the demand for C&I loans, on balance, a modest net fraction of large banks reported 

that demand from large and middle-market firms was weaker during the first quarter, whereas 

demand remained basically unchanged for loans to small firms. Among the banks that reported 

weaker loan demand, customers’ decreased investment in plant or equipment was the most 

commonly cited reason, though customers’ reduced needs to finance merger and acquisition 

activity, accounts receivable, and inventories were also cited by the majority of respondents. 

 4 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.
3

Furthermore, a moderate net fraction of foreign bank respondents reported that demand for C&I 

loans weakened over the first quarter of 2016.

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 

banks that made loans to such firms, the majority of domestic banks indicated that such lending 

accounts for less than 5 percent of their outstanding C&I loans, whereas the majority of foreign 

banks reported that loans to firms in this sector account for more than 5 percent of their 

outstanding C&I loans. The majority of both domestic and foreign banks reported that they 

expect delinquency and charge-off rates on loans to firms in the oil and natural gas drilling or 

extraction sector to deteriorate somewhat over the remainder of 2016. At the same time, the 

majority of both domestic and foreign banks reported taking a variety of actions to mitigate loan 

losses over the past year, including tightening lending policies on new loans or lines of credit 

made to firms in this sector, restructuring outstanding loans, requiring additional collateral, and 

setting aside additional reserves for a potential increase in loan losses. A significant percentage

of banks also reported enforcing material adverse change clauses or other covenants to limit

draws on existing credit lines to firms in this sector, tightening lending policies on new loans or 

lines of credit to firms in other sectors, and hedging the risks arising from declines in energy 

prices through derivatives contracts. 

On balance, banks indicated a spillover from the energy sector onto credit quality of loans made 

to businesses and households located in energy-sector-dependent regions. In particular, a 

significant net fraction of banks reported that credit quality deteriorated for both auto loans and

non-energy-sector C&I loans somewhat over the past year. Furthermore, moderate fractions of 

banks indicated that CRE loans, consumer credit card loans, and consumer loans other than 

credit card and auto loans made to businesses and households in these regions also deteriorated

somewhat over the past year. 

Questions on commercial real estate lending. On net, survey respondents indicated that their 

lending standards for CRE loans of all types tightened during the first quarter.

5

 A significant net 

fraction of banks reported tightening standards for construction and land development loans and 

loans secured by multifamily residential properties, whereas a moderate net fraction of banks 

reported tightening standards for loans secured by nonfarm nonresidential properties. 

During the first quarter of 2016, on balance, banks indicated that they had experienced stronger 

demand for all three types of CRE loans. Moderate net fractions of banks reported stronger 

demand for construction and land development loans and loans secured by nonfarm 

 5 The three categories of CRE loans that banks are asked to consider are construction and land development 

loans, loans secured by nonfarm nonresidential properties, and loans secured by multifamily residential properties.
4

nonresidential properties, and a modest net fraction of banks reported stronger demand for loans 

secured by multifamily residential properties. Meanwhile, nearly all foreign banks reported 

leaving CRE lending standards basically unchanged, while a significant net fraction of foreign 

banks reported experiencing weaker demand for such loans.

Special questions on commercial real estate lending. The April survey included a set of 

special questions regarding CRE lending activities. First, banks were asked about changes over 

the past year in their lending policies for CRE loans. In particular, moderate net fractions of 

banks reported increasing maximum loan size and tightening loan-to-value ratios, while a modest 

net fraction reported tightening debt-service coverage ratios. Survey respondents indicated that 

other loan terms remained basically unchanged, on net, over the past year. 

Next, banks were asked about their responses to conditions in the CMBS markets over the past 

six months. A moderate net fraction of banks reported moderately increasing the volume of 

origination of CRE loans, while a significant fraction reported moderately decreasing the volume 

of CRE loan securitization. On balance, banks reported that demand for loans or lines of credit 

from nonbank financial institutions, used to fund their CRE loan pipelines prior to securitization, 

remained basically unchanged over the past six months, while a moderate fraction of banks 

indicated tightening standards applied to such loans or lines of credit during this period. When 

asked about the anticipated large amount of CRE loans originated in 2006 and currently held in 

CMBS that will need to be refinanced over the next six months, a moderate net fraction of banks 

noted they expect standards for these refinancings to be somewhat tighter than standards they 

expect to apply to other CRE loans.

Lending to Households

(Table 1, questions 24–37)

Questions on residential real estate lending. During the first quarter, a moderate net fraction 

of banks reported having eased standards on GSE-eligible loans, while a modest net fraction of 

banks reported having eased standards on QM and non-QM jumbo residential mortgage loans as 

well as on QM non-jumbo non-GSE-eligible and non-QM non-jumbo residential mortgage 

loans.

6

 Meanwhile, banks left lending standards basically unchanged for all other categories of 

RRE loans on net. 

 6 The seven categories of residential home-purchase loans that banks are asked to consider are GSEeligible, government, QM non-jumbo non-GSE-eligible, QM jumbo, non-QM jumbo, non-QM non-jumbo, and 

subprime. See the survey results tables that follow this summary for a description of each of these loan categories. 

The definition of a 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 
5

Over the first quarter of 2016, banks reported stronger demand for most categories of RRE

mortgage loans. In particular, a significant net fraction of banks reported stronger demand for 

GSE-eligible and QM jumbo residential mortgages. At the same time, a moderate net fraction of 

banks reported stronger demand for government, QM non-jumbo non-GSE-eligible, and non-QM 

jumbo residential mortgages, and a modest fraction of banks reported stronger demand for nonQM non-jumbo residential mortgages. Credit standards were reportedly little changed for 

approving applications for revolving home equity lines of credit, and a moderate fraction of 

banks reported that demand for revolving home equity lines of credit had strengthened on net.

Questions on consumer lending. A moderate net fraction of banks indicated that they were 

more willing to make consumer installment loans during the first quarter compared with three 

months prior. Over the first quarter, a modest net fraction of banks reported easing lending 

standards on credit cards and other consumer loans, whereas lending standards for auto loans 

remained basically unchanged. On balance, banks reported that terms across all categories of 

consumer loans remained basically unchanged over the first quarter. Banks generally reported 

that demand for consumer loans had strengthened in the first quarter: Moderate net fractions of 

banks reported stronger demand for auto loans and consumer loans other than credit card and 

auto loans, whereas a modest net fraction reported that demand for credit card loans strengthened 

during the first quarter.

This document was prepared by Maya Shaton, with the assistance of William Hayes and Blake 

Taylor, Division of Monetary Affairs, Board of Governors of the Federal Reserve System.

 

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.
Measures of Supply and Demand for Commercial and Industrial Loans,

by Size of Firm Seeking Loan

 -40

 -20

 0

 20

 40

 60

 80

 100

Percent

Loans to large and middle-market firms

Loans to small firms

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

 

Jan.

survey

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

-80

-60

-40

-20

 0

 20

 40

 60

 80

100

Percent

Net Percentage of Domestic Respondents Increasing Spreads of Loan Rates over Bank’s Cost of Funds

 

Jan.

survey

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

-80

-60

-40

-20

 0

 20

 40

 60

Percent

Net Percentage of Domestic Respondents Reporting Stronger Demand for Commercial and Industrial Loans

 

Jan.

survey

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
Measures of Supply and Demand for Commercial Real Estate Loans

 -20

 0

 20

 40

 60

 80

 100

1993 1997 2001 2005 2009 2013

Percent

All commercial real estate loans

 

Q4 Q2 Q4 Q2 Q4 Q2

2013 2014 2015 2016

 -20

 0

 20

 40

 60

 80

 100

Percent

Construction and land development

Nonfarm nonresidential

Multifamily

 

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

-80

-60

-40

-20

 0

 20

 40

 60

1993 1997 2001 2005 2009 2013

Percent

All commercial real estate loans

 

Q4 Q2 Q4 Q2 Q4 Q2

2013 2014 2015 2016

-80

-60

-40

-20

 0

 20

 40

 60

Percent

Construction and land development

Nonfarm nonresidential

Multifamily

 

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

 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

 -20

 0

 20

 40

 60

 80

 100

1990 1993 1996 1999 2002 2005 2008 2011 2014

Percent

All residential mortgage loans

Prime

Nontraditional

Subprime

 

-80

-60

-40

-20

 0

 20

 40

 60

 80

Net percent

Q1 Q2 Q3 Q4 Q1 Q2

2015 2016

 GSE

 Government

 QM non-jumbo non-GSE

 QM-jumbo

 Non-QM jumbo

 Non-QM non-jumbo

 Subprime

Net Percentage of Domestic Respondents Tightening Standards for Residential Mortgage Loans

-100

 -80

 -60

 -40

 -20

 0

 20

 40

 60

 80

1990 1994 1998 2002 2006 2010 2014

Percent

All residential mortgage loans

Prime

Nontraditional

Subprime

 

-80

-60

-40

-20

 0

 20

 40

 60

 80

Net percent

Q1 Q2 Q3 Q4 Q1 Q2

2015 2016

 GSE

 Government

 QM non-jumbo non-GSE

 QM-jumbo

 Non-QM jumbo

 Non-QM non-jumbo

 Subprime

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

 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

 -40

 -20

 0

 20

 40

 60

 80

 100

Percent

Credit card loans

Other consumer loans

 

1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2011 2013 2015

 -40

 -20

 0

 20

 40

 60

 80

 100

Percent

Credit card loans

Auto loans

Other consumer loans

 

Net Percentage of Domestic Respondents Tightening Standards for Consumer Loans

 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.

-60

-40

-20

 0

 20

 40

 60

Percent

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

 

Jan.

survey

1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

-60

-40

-20

 0

 20

 40

 60

 80

100

Percent

All consumer loans

 

1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2011 2013 2015

-60

-40

-20

 0

 20

 40

 60

 80

100

Percent

Credit card loans

Auto loans

Other consumer loans

 

Net Percentage of Domestic Respondents Reporting Stronger Demand for Consumer Loans

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

separately.
Table 1

1

(Status of policy as of April 2016)

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 2 2.9 2 4.8 0 0.0

Tightened somewhat 7 10.1 6 14.3 1 3.7

Remained basically unchanged 59 85.5 33 78.6 26 96.3

Eased somewhat 1 1.4 1 2.4 0 0.0

Eased considerably 0 0.0 0 0.0 0 0.0

Total 69 100.0 42 100.0 27 100.0
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 5 7.2 4 9.8 1 3.6

Remained basically unchanged 63 91.3 36 87.8 27 96.4

Eased somewhat 1 1.4 1 2.4 0 0.0

Eased considerably 0 0.0 0 0.0 0 0.0

Total 69 100.0 41 100.0 28 100.0

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 1 1.4 1 2.4 0 0.0

Tightened somewhat 8 11.6 7 16.7 1 3.7

Remained basically unchanged 54 78.3 30 71.4 24 88.9

Eased somewhat 6 8.7 4 9.5 2 7.4

Eased considerably 0 0.0 0 0.0 0 0.0

Total 69 100.0 42 100.0 27 100.0
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 3 4.3 2 4.8 1 3.7

Remained basically unchanged 62 89.9 38 90.5 24 88.9

Eased somewhat 4 5.8 2 4.8 2 7.4

Eased considerably 0 0.0 0 0.0 0 0.0

Total 69 100.0 42 100.0 27 100.0

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 5 7.2 5 11.9 0 0.0

Remained basically unchanged 59 85.5 34 81.0 25 92.6

Eased somewhat 5 7.2 3 7.1 2 7.4

Eased considerably 0 0.0 0 0.0 0 0.0

Total 69 100.0 42 100.0 27 100.0
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 11 15.9 9 21.4 2 7.4

Remained basically unchanged 45 65.2 27 64.3 18 66.7

Eased somewhat 12 17.4 6 14.3 6 22.2

Eased considerably 1 1.4 0 0.0 1 3.7

Total 69 100.0 42 100.0 27 100.0

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 12 17.4 9 21.4 3 11.1

Remained basically unchanged 54 78.3 32 76.2 22 81.5

Eased somewhat 3 4.3 1 2.4 2 7.4

Eased considerably 0 0.0 0 0.0 0 0.0

Total 69 100.0 42 100.0 27 100.0
f. Loan covenants

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably 1 1.4 1 2.4 0 0.0

Tightened somewhat 9 13.0 6 14.3 3 11.1

Remained basically unchanged 55 79.7 32 76.2 23 85.2

Eased somewhat 4 5.8 3 7.1 1 3.7

Eased considerably 0 0.0 0 0.0 0 0.0

Total 69 100.0 42 100.0 27 100.0

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 6 8.7 5 11.9 1 3.7

Remained basically unchanged 60 87.0 35 83.3 25 92.6

Eased somewhat 3 4.3 2 4.8 1 3.7

Eased considerably 0 0.0 0 0.0 0 0.0

Total 69 100.0 42 100.0 27 100.0

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 7 10.3 7 17.1 0 0.0

Remained basically unchanged 52 76.5 31 75.6 21 77.8

Eased somewhat 4 5.9 1 2.4 3 11.1

Eased considerably 5 7.4 2 4.9 3 11.1

Total 68 100.0 41 100.0 27 100.0
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 1 1.5 0 0.0 1 3.6

Remained basically unchanged 65 95.6 39 97.5 26 92.9

Eased somewhat 2 2.9 1 2.5 1 3.6

Eased considerably 0 0.0 0 0.0 0 0.0

Total 68 100.0 40 100.0 28 100.0

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 2 2.9 1 2.5 1 3.6

Remained basically unchanged 62 91.2 36 90.0 26 92.9

Eased somewhat 4 5.9 3 7.5 1 3.6

Eased considerably 0 0.0 0 0.0 0 0.0

Total 68 100.0 40 100.0 28 100.0
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 1.5 0 0.0 1 3.6

Remained basically unchanged 65 95.6 39 97.5 26 92.9

Eased somewhat 2 2.9 1 2.5 1 3.6

Eased considerably 0 0.0 0 0.0 0 0.0

Total 68 100.0 40 100.0 28 100.0

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 5 7.4 2 5.0 3 10.7

Remained basically unchanged 55 80.9 34 85.0 21 75.0

Eased somewhat 7 10.3 4 10.0 3 10.7

Eased considerably 1 1.5 0 0.0 1 3.6

Total 68 100.0 40 100.0 28 100.0
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 9 13.2 6 15.0 3 10.7

Remained basically unchanged 56 82.4 33 82.5 23 82.1

Eased somewhat 3 4.4 1 2.5 2 7.1

Eased considerably 0 0.0 0 0.0 0 0.0

Total 68 100.0 40 100.0 28 100.0

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 6 8.8 4 10.0 2 7.1

Remained basically unchanged 57 83.8 33 82.5 24 85.7

Eased somewhat 5 7.4 3 7.5 2 7.1

Eased considerably 0 0.0 0 0.0 0 0.0

Total 68 100.0 40 100.0 28 100.0

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 4 5.9 2 5.0 2 7.1

Remained basically unchanged 62 91.2 37 92.5 25 89.3

Eased somewhat 2 2.9 1 2.5 1 3.6

Eased considerably 0 0.0 0 0.0 0 0.0

Total 68 100.0 40 100.0 28 100.0
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 3 4.5 3 7.7 0 0.0

Remained basically unchanged 54 80.6 33 84.6 21 75.0

Eased somewhat 5 7.5 1 2.6 4 14.3

Eased considerably 5 7.5 2 5.1 3 10.7

Total 67 100.0 39 100.0 28 100.0

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 23 92.0 18 90.0 5 100.0

Somewhat important 0 0.0 0 0.0 0 0.0

Very important 2 8.0 2 10.0 0 0.0

Total 25 100.0 20 100.0 5 100.0

b. Less favorable or more uncertain economic outlook

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Not important 7 28.0 6 30.0 1 20.0

Somewhat important 10 40.0 7 35.0 3 60.0

Very important 8 32.0 7 35.0 1 20.0

Total 25 100.0 20 100.0 5 100.0
c. Worsening of industry-specific problems (please specify industries)

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Not important 8 32.0 6 30.0 2 40.0

Somewhat important 9 36.0 7 35.0 2 40.0

Very important 8 32.0 7 35.0 1 20.0

Total 25 100.0 20 100.0 5 100.0

d. Less aggressive competition from other banks or nonbank lenders (other financial

intermediaries or the capital markets)

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Not important 19 76.0 15 75.0 4 80.0

Somewhat important 5 20.0 4 20.0 1 20.0

Very important 1 4.0 1 5.0 0 0.0

Total 25 100.0 20 100.0 5 100.0

e. Reduced tolerance for risk

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Not important 15 60.0 12 60.0 3 60.0

Somewhat important 7 28.0 6 30.0 1 20.0

Very important 3 12.0 2 10.0 1 20.0

Total 25 100.0 20 100.0 5 100.0
f. Decreased liquidity in the secondary market for these loans

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Not important 20 80.0 15 75.0 5 100.0

Somewhat important 3 12.0 3 15.0 0 0.0

Very important 2 8.0 2 10.0 0 0.0

Total 25 100.0 20 100.0 5 100.0

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

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Not important 23 92.0 18 90.0 5 100.0

Somewhat important 1 4.0 1 5.0 0 0.0

Very important 1 4.0 1 5.0 0 0.0

Total 25 100.0 20 100.0 5 100.0

h. Increased concerns about the effects of legislative changes, supervisory actions, or changes in

accounting standards

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Not important 15 62.5 11 57.9 4 80.0

Somewhat important 4 16.7 4 21.1 0 0.0

Very important 5 20.8 4 21.1 1 20.0

Total 24 100.0 19 100.0 5 100.0
B. Possible reasons for easing credit standards or loan terms:

a. Improvement in your bank's current or expected capital position

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Not important 19 90.5 11 84.6 8 100.0

Somewhat important 2 9.5 2 15.4 0 0.0

Very important 0 0.0 0 0.0 0 0.0

Total 21 100.0 13 100.0 8 100.0

b. More favorable or less uncertain economic outlook

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Not important 15 68.2 10 76.9 5 55.6

Somewhat important 5 22.7 2 15.4 3 33.3

Very important 2 9.1 1 7.7 1 11.1

Total 22 100.0 13 100.0 9 100.0

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

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Not important 18 81.8 11 84.6 7 77.8

Somewhat important 4 18.2 2 15.4 2 22.2

Very important 0 0.0 0 0.0 0 0.0

Total 22 100.0 13 100.0 9 100.0
d. More aggressive competition from other banks or nonbank lenders (other financial

intermediaries or the capital markets)

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Not important 5 21.7 3 21.4 2 22.2

Somewhat important 10 43.5 6 42.9 4 44.4

Very important 8 34.8 5 35.7 3 33.3

Total 23 100.0 14 100.0 9 100.0

e. Increased tolerance for risk

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Not important 14 63.6 10 76.9 4 44.4

Somewhat important 8 36.4 3 23.1 5 55.6

Very important 0 0.0 0 0.0 0 0.0

Total 22 100.0 13 100.0 9 100.0

f. Increased liquidity in the secondary market for these loans

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Not important 18 81.8 10 76.9 8 88.9

Somewhat important 4 18.2 3 23.1 1 11.1

Very important 0 0.0 0 0.0 0 0.0

Total 22 100.0 13 100.0 9 100.0
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 18 81.8 10 76.9 8 88.9

Somewhat important 3 13.6 2 15.4 1 11.1

Very important 1 4.5 1 7.7 0 0.0

Total 22 100.0 13 100.0 9 100.0

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 19 90.5 11 91.7 8 88.9

Somewhat important 2 9.5 1 8.3 1 11.1

Very important 0 0.0 0 0.0 0 0.0

Total 21 100.0 12 100.0 9 100.0

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.)

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 14 20.3 9 21.4 5 18.5

About the same 35 50.7 17 40.5 18 66.7

Moderately weaker 20 29.0 16 38.1 4 14.8

Substantially weaker 0 0.0 0 0.0 0 0.0

Total 69 100.0 42 100.0 27 100.0
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 10 14.7 5 12.5 5 17.9

About the same 46 67.6 26 65.0 20 71.4

Moderately weaker 12 17.6 9 22.5 3 10.7

Substantially weaker 0 0.0 0 0.0 0 0.0

Total 68 100.0 40 100.0 28 100.0

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 8 50.0 7 63.6 1 20.0

Somewhat important 8 50.0 4 36.4 4 80.0

Very important 0 0.0 0 0.0 0 0.0

Total 16 100.0 11 100.0 5 100.0

b. Customer accounts receivable financing needs increased

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Not important 7 43.8 7 63.6 0 0.0

Somewhat important 7 43.8 3 27.3 4 80.0

Very important 2 12.5 1 9.1 1 20.0

Total 16 100.0 11 100.0 5 100.0
c. Customer investment in plant or equipment increased

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Not important 6 37.5 5 45.5 1 20.0

Somewhat important 9 56.3 5 45.5 4 80.0

Very important 1 6.3 1 9.1 0 0.0

Total 16 100.0 11 100.0 5 100.0

d. Customer internally generated funds decreased

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Not important 13 81.3 10 90.9 3 60.0

Somewhat important 3 18.8 1 9.1 2 40.0

Very important 0 0.0 0 0.0 0 0.0

Total 16 100.0 11 100.0 5 100.0

e. Customer merger or acquisition financing needs increased

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Not important 12 75.0 8 72.7 4 80.0

Somewhat important 2 12.5 1 9.1 1 20.0

Very important 2 12.5 2 18.2 0 0.0

Total 16 100.0 11 100.0 5 100.0
f. Customer borrowing shifted to your bank from other bank or nonbank sources because these

other sources became less attractive

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Not important 7 41.2 5 41.7 2 40.0

Somewhat important 4 23.5 2 16.7 2 40.0

Very important 6 35.3 5 41.7 1 20.0

Total 17 100.0 12 100.0 5 100.0

g. Customer precautionary demand for cash and liquidity increased

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Not important 12 70.6 8 66.7 4 80.0

Somewhat important 3 17.6 2 16.7 1 20.0

Very important 2 11.8 2 16.7 0 0.0

Total 17 100.0 12 100.0 5 100.0

B. If weaker loan demand (answer 4 or 5 to question 4A or 4B), possible reasons:

a. Customer inventory financing needs decreased

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Not important 9 45.0 8 47.1 1 33.3

Somewhat important 10 50.0 8 47.1 2 66.7

Very important 1 5.0 1 5.9 0 0.0

Total 20 100.0 17 100.0 3 100.0
b. Customer accounts receivable financing needs decreased

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Not important 10 50.0 8 47.1 2 66.7

Somewhat important 10 50.0 9 52.9 1 33.3

Very important 0 0.0 0 0.0 0 0.0

Total 20 100.0 17 100.0 3 100.0

c. Customer investment in plant or equipment decreased

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Not important 5 25.0 5 29.4 0 0.0

Somewhat important 10 50.0 7 41.2 3 100.0

Very important 5 25.0 5 29.4 0 0.0

Total 20 100.0 17 100.0 3 100.0

d. Customer internally generated funds increased

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Not important 13 65.0 12 70.6 1 33.3

Somewhat important 5 25.0 4 23.5 1 33.3

Very important 2 10.0 1 5.9 1 33.3

Total 20 100.0 17 100.0 3 100.0
e. Customer merger or acquisition financing needs decreased

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Not important 8 38.1 8 44.4 0 0.0

Somewhat important 8 38.1 6 33.3 2 66.7

Very important 5 23.8 4 22.2 1 33.3

Total 21 100.0 18 100.0 3 100.0

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 15 75.0 12 70.6 3 100.0

Somewhat important 2 10.0 2 11.8 0 0.0

Very important 3 15.0 3 17.6 0 0.0

Total 20 100.0 17 100.0 3 100.0

g. Customer precautionary demand for cash and liquidity decreased

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Not important 14 70.0 12 70.6 2 66.7

Somewhat important 4 20.0 3 17.6 1 33.3

Very important 2 10.0 2 11.8 0 0.0

Total 20 100.0 17 100.0 3 100.0
6. At your bank, apart from seasonal variation, how has the number of inquiries from potential business

borrowers regarding the availability and terms of new credit lines or increases in existing lines changed over

the past three months? (Please consider only inquiries for additional or increased C&I lines as opposed to the

refinancing of existing loans.)

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

The number of inquiries has increased substantially 0 0.0 0 0.0 0 0.0

The number of inquiries has increased moderately 13 18.6 9 21.4 4 14.3

The number of inquiries has stayed about the same 41 58.6 20 47.6 21 75.0

The number of inquiries has decreased moderately 16 22.9 13 31.0 3 10.7

The number of inquiries has decreased substantially 0 0.0 0 0.0 0 0.0

Total 70 100.0 42 100.0 28 100.0
Over the past year, 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 bank's books were 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 lending policies made by your bank in response to developments in

the oil and natural gas drilling/extraction sector. Question 10 asks about possible spillover effects from

declines in energy commodity prices and associated declines in energy sector activities to other loan types.

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 20 percent 1 1.7 1 2.6 0 0.0

More than 10 percent but less than 20 percent 7 11.7 4 10.3 3 14.3

More than 5 percent but less than 10 percent 9 15.0 7 17.9 2 9.5

More than 1 percent but less than 5 percent 20 33.3 17 43.6 3 14.3

Less than 1 percent 23 38.3 10 25.6 13 61.9

Total 60 100.0 39 100.0 21 100.0

For this question, 9 respondents answered “My bank does not have any outstanding loans or 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 futures prices, what is your outlook for delinquencies and charge-offs on your

bank's existing loans to firms in the oil and natural gas drilling/extraction sector over the remainder of 2016?

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 1.7 0 0.0 1 4.8

Loan quality is likely to remain around current levels 20 33.3 8 20.5 12 57.1

Loan quality is likely to deteriorate somewhat 35 58.3 27 69.2 8 38.1

Loan quality is likely to deteriorate substantially 4 6.7 4 10.3 0 0.0

Total 60 100.0 39 100.0 21 100.0

For this question, 7 respondents answered “My bank does not have any outstanding loans to firms

in the oil and natural gas drilling/extraction sector.”

9. Please indicate how important each of the following actions have been 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 over the past

year.

a. Tightening lending 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 11 19.6 6 15.8 5 27.8

Somewhat important 18 32.1 10 26.3 8 44.4

Very important 27 48.2 22 57.9 5 27.8

Total 56 100.0 38 100.0 18 100.0
b. Enforcing material adverse change clauses or other covenants 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 29 51.8 19 50.0 10 55.6

Somewhat important 16 28.6 11 28.9 5 27.8

Very important 11 19.6 8 21.1 3 16.7

Total 56 100.0 38 100.0 18 100.0

c. Restructuring outstanding loans to make them more robust to the changed outlook for energy

prices

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Not important 12 21.4 4 10.5 8 44.4

Somewhat important 26 46.4 21 55.3 5 27.8

Very important 18 32.1 13 34.2 5 27.8

Total 56 100.0 38 100.0 18 100.0

d. 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 9 16.1 6 15.8 3 16.7

Somewhat important 29 51.8 20 52.6 9 50.0

Very important 18 32.1 12 31.6 6 33.3

Total 56 100.0 38 100.0 18 100.0
e. Setting aside additional reserves for a potential increase in loan losses

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Not important 16 28.6 6 15.8 10 55.6

Somewhat important 16 28.6 10 26.3 6 33.3

Very important 24 42.9 22 57.9 2 11.1

Total 56 100.0 38 100.0 18 100.0

f. Tightening lending 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 39 69.6 26 68.4 13 72.2

Somewhat important 12 21.4 8 21.1 4 22.2

Very important 5 8.9 4 10.5 1 5.6

Total 56 100.0 38 100.0 18 100.0

g. Hedging the risks arising from declines in energy prices through derivatives contracts

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Not important 42 75.0 25 65.8 17 94.4

Somewhat important 9 16.1 9 23.7 0 0.0

Very important 5 8.9 4 10.5 1 5.6

Total 56 100.0 38 100.0 18 100.0
h. My bank has not needed to mitigate risks of loan losses made to firms in this sector

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Not important 14 53.8 8 61.5 6 46.2

Somewhat important 4 15.4 2 15.4 2 15.4

Very important 8 30.8 3 23.1 5 38.5

Total 26 100.0 13 100.0 13 100.0

10. If your bank has other loans outstanding to businesses or households located in regions of the United

States that are dependent on the energy sector, how has the credit quality of the loans to customers in those

regions changed as a result of the decline in energy commodity prices and associated declines in energy

sector activities over the past year?

a. C&I loans to firms not in the oil and natural gas drilling/extraction sector

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Credit quality has improved substantially 0 0.0 0 0.0 0 0.0

Credit quality improved somewhat 1 1.8 0 0.0 1 5.3

Credit quality remained about unchanged 40 70.2 27 71.1 13 68.4

Credit quality deteriorated somewhat 16 28.1 11 28.9 5 26.3

Credit quality deteriorated substantially 0 0.0 0 0.0 0 0.0

Total 57 100.0 38 100.0 19 100.0
b. Commercial real estate loans

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Credit quality has improved substantially 0 0.0 0 0.0 0 0.0

Credit quality improved somewhat 3 5.4 2 5.6 1 5.0

Credit quality remained about unchanged 43 76.8 27 75.0 16 80.0

Credit quality deteriorated somewhat 9 16.1 7 19.4 2 10.0

Credit quality deteriorated substantially 1 1.8 0 0.0 1 5.0

Total 56 100.0 36 100.0 20 100.0

c. Residential real estate loans

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Credit quality has improved substantially 0 0.0 0 0.0 0 0.0

Credit quality improved somewhat 1 2.0 0 0.0 1 5.3

Credit quality remained about unchanged 45 88.2 30 93.8 15 78.9

Credit quality deteriorated somewhat 5 9.8 2 6.3 3 15.8

Credit quality deteriorated substantially 0 0.0 0 0.0 0 0.0

Total 51 100.0 32 100.0 19 100.0

d. Auto loans

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Credit quality has improved substantially 0 0.0 0 0.0 0 0.0

Credit quality improved somewhat 0 0.0 0 0.0 0 0.0

Credit quality remained about unchanged 39 75.0 26 78.8 13 68.4

Credit quality deteriorated somewhat 12 23.1 7 21.2 5 26.3

Credit quality deteriorated substantially 1 1.9 0 0.0 1 5.3

Total 52 100.0 33 100.0 19 100.0
e. Consumer credit card loans

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Credit quality has improved substantially 0 0.0 0 0.0 0 0.0

Credit quality improved somewhat 0 0.0 0 0.0 0 0.0

Credit quality remained about unchanged 39 84.8 26 86.7 13 81.3

Credit quality deteriorated somewhat 7 15.2 4 13.3 3 18.8

Credit quality deteriorated substantially 0 0.0 0 0.0 0 0.0

Total 46 100.0 30 100.0 16 100.0

f. Consumer loans other than credit card and auto loans

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Credit quality has improved substantially 0 0.0 0 0.0 0 0.0

Credit quality improved somewhat 0 0.0 0 0.0 0 0.0

Credit quality remained about unchanged 42 85.7 28 93.3 14 73.7

Credit quality deteriorated somewhat 7 14.3 2 6.7 5 26.3

Credit quality deteriorated substantially 0 0.0 0 0.0 0 0.0

Total 49 100.0 30 100.0 19 100.0
Questions 11-16 ask about changes in standards and demand over the past three months for three different

types of commercial real estate (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.

11. 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 2 2.9 2 4.9 0 0.0

Tightened somewhat 15 21.7 12 29.3 3 10.7

Remained basically unchanged 52 75.4 27 65.9 25 89.3

Eased somewhat 0 0.0 0 0.0 0 0.0

Eased considerably 0 0.0 0 0.0 0 0.0

Total 69 100.0 41 100.0 28 100.0

12. 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 8 11.6 7 17.1 1 3.6

Remained basically unchanged 61 88.4 34 82.9 27 96.4

Eased somewhat 0 0.0 0 0.0 0 0.0

Eased considerably 0 0.0 0 0.0 0 0.0

Total 69 100.0 41 100.0 28 100.0
13. 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 2 2.9 2 4.9 0 0.0

Tightened somewhat 23 33.3 17 41.5 6 21.4

Remained basically unchanged 44 63.8 22 53.7 22 78.6

Eased somewhat 0 0.0 0 0.0 0 0.0

Eased considerably 0 0.0 0 0.0 0 0.0

Total 69 100.0 41 100.0 28 100.0

14. 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 17 25.0 10 25.0 7 25.0

About the same 43 63.2 24 60.0 19 67.9

Moderately weaker 8 11.8 6 15.0 2 7.1

Substantially weaker 0 0.0 0 0.0 0 0.0

Total 68 100.0 40 100.0 28 100.0
15. 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 0 0.0 0 0.0 0 0.0

Moderately stronger 11 15.9 9 22.0 2 7.1

About the same 56 81.2 30 73.2 26 92.9

Moderately weaker 2 2.9 2 4.9 0 0.0

Substantially weaker 0 0.0 0 0.0 0 0.0

Total 69 100.0 41 100.0 28 100.0

16. 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 0 0.0 0 0.0 0 0.0

Moderately stronger 13 19.1 7 17.5 6 21.4

About the same 48 70.6 28 70.0 20 71.4

Moderately weaker 6 8.8 4 10.0 2 7.1

Substantially weaker 1 1.5 1 2.5 0 0.0

Total 68 100.0 40 100.0 28 100.0
Questions 17-18 ask about how your bank has changed its lending policies on CRE loans over the past year.

17. Over the past year, how has your bank changed the following policies on CRE loans?

a. Maximum loan size

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 5.7 3 7.1 1 3.6

Remained basically unchanged 55 78.6 30 71.4 25 89.3

Eased somewhat 11 15.7 9 21.4 2 7.1

Eased considerably 0 0.0 0 0.0 0 0.0

Total 70 100.0 42 100.0 28 100.0

b. Maximum loan 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 4 5.7 2 4.8 2 7.1

Remained basically unchanged 59 84.3 36 85.7 23 82.1

Eased somewhat 7 10.0 4 9.5 3 10.7

Eased considerably 0 0.0 0 0.0 0 0.0

Total 70 100.0 42 100.0 28 100.0
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 0 0.0 0 0.0 0 0.0

Tightened somewhat 16 22.9 14 33.3 2 7.1

Remained basically unchanged 37 52.9 18 42.9 19 67.9

Eased somewhat 17 24.3 10 23.8 7 25.0

Eased considerably 0 0.0 0 0.0 0 0.0

Total 70 100.0 42 100.0 28 100.0

d. Loan-to-value ratios

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably 1 1.4 1 2.4 0 0.0

Tightened somewhat 9 12.9 4 9.5 5 17.9

Remained basically unchanged 58 82.9 36 85.7 22 78.6

Eased somewhat 2 2.9 1 2.4 1 3.6

Eased considerably 0 0.0 0 0.0 0 0.0

Total 70 100.0 42 100.0 28 100.0
e. Debt-service coverage ratios

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably 1 1.4 1 2.4 0 0.0

Tightened somewhat 6 8.6 4 9.5 2 7.1

Remained basically unchanged 62 88.6 37 88.1 25 89.3

Eased somewhat 1 1.4 0 0.0 1 3.6

Eased considerably 0 0.0 0 0.0 0 0.0

Total 70 100.0 42 100.0 28 100.0

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 0 0.0 0 0.0 0 0.0

Tightened somewhat 6 8.6 4 9.5 2 7.1

Remained basically unchanged 56 80.0 34 81.0 22 78.6

Eased somewhat 8 11.4 4 9.5 4 14.3

Eased considerably 0 0.0 0 0.0 0 0.0

Total 70 100.0 42 100.0 28 100.0
g. Length of interest-only payment period (shorter interest-only periods=tightened, longer

interest-only periods=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 7 10.1 4 9.8 3 10.7

Remained basically unchanged 54 78.3 33 80.5 21 75.0

Eased somewhat 8 11.6 4 9.8 4 14.3

Eased considerably 0 0.0 0 0.0 0 0.0

Total 69 100.0 41 100.0 28 100.0
18. If your bank has tightened or eased its credit policies on CRE loans over the past year (as described in

question 17), 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 A, B, 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 2.4 2.5 2.1

Less favorable or more uncertain outlook for vacancy rates or other

fundamentals on CRE properties 2.8 3.1 2.1

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

2.6 2.8 2.1

Less aggressive competition from other banks or nonbank financial

institutions (other financial intermediaries or the capital markets) 1.6 1.8 1.0

Reduced tolerance for risk 2.6 2.4 3.0

Decreased ability to securitize CRE loans 1.2 1.3 1.0

Increased concerns about capital adequacy, liquidity position, or

regulation more broadly 1.8 1.9 1.7

Other 3.8 3.5 4.0

Number of respondents 32 21 11
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 1.8 1.6 2.0

More favorable or less uncertain outlook for vacancy rates or other

fundamentals on CRE properties 2.4 2.1 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

1.9 2.0 1.8

More aggressive competition from other banks or non-bank lenders

(other financial intermediaries or the capital markets) 3.4 3.3 3.5

Increased tolerance for risk 2.2 2.2 2.2

Increased ability to securitize CRE loans 1.2 1.0 1.3

Decreased concerns about capital adequacy, liquidity position, or

regulation more broadly 1.3 1.2 1.5

Other 2.4 2.8 1.0

Number of respondents 24 14 10
Yields on commercial mortgage-backed securities (CMBS) have increased considerably over the last six

months. At the same time, outstanding CRE loans held on banks' books have continued to grow robustly in

aggregate, according to the Federal Reserve's weekly H.8 statistical release, "Assets and Liabilities of

Commercial Banks in the United States." Questions 19-23 ask how your bank's lending policies and practices

regarding CRE loans have been affected by recent conditions in the CMBS market and by activities of

nonbank financial institutions.

19. How have conditions in the CMBS market affected the volume of CRE loan originations by your bank

over the past six months?

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Led to a substantial decrease 0 0.0 0 0.0 0 0.0

Led to a moderate decrease 6 8.8 5 12.2 1 3.7

Led to no change 49 72.1 26 63.4 23 85.2

Led to a moderate increase 13 19.1 10 24.4 3 11.1

Led to a substantial increase 0 0.0 0 0.0 0 0.0

Total 68 100.0 41 100.0 27 100.0

For this question, 1 respondent answered “My bank does not originate CRE loans.”

20. How have conditions in the CMBS market affected the volume of CRE loan securitizations by your bank

over the past six months?

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Led to a substantial decrease 2 7.7 2 16.7 0 0.0

Led to a moderate decrease 5 19.2 4 33.3 1 7.1

Led to no change 19 73.1 6 50.0 13 92.9

Led to a moderate increase 0 0.0 0 0.0 0 0.0

Led to a substantial increase 0 0.0 0 0.0 0 0.0

Total 26 100.0 12 100.0 14 100.0

For this question, 42 respondents answered “My bank does not securitize CRE loans.”
21. Apart from normal seasonal variation, how has demand for loans or lines of credit from nonbank financial

institutions, used to fund their CRE loan pipelines prior to securitization, changed over the past six 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

Somewhat stronger 3 13.6 3 20.0 0 0.0

About the same 17 77.3 10 66.7 7 100.0

Somewhat weaker 2 9.1 2 13.3 0 0.0

Substantially weaker 0 0.0 0 0.0 0 0.0

Total 22 100.0 15 100.0 7 100.0

For this question, 46 respondents answered “My bank does not originate these types of loans or

credit lines.”

22. How have your bank’s credit standards for approving applications for loans or lines of credit to nonbank

financial institutions, used to fund their CRE loan pipelines prior to securitization, changed over the past six

months? (Please consider applications for new spot loans, and for new or increased 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 3 13.6 3 20.0 0 0.0

Remained basically unchanged 19 86.4 12 80.0 7 100.0

Eased somewhat 0 0.0 0 0.0 0 0.0

Eased considerably 0 0.0 0 0.0 0 0.0

Total 22 100.0 15 100.0 7 100.0

For this question, 46 respondents answered “My bank does not originate these types of loans or

credit lines.”
23. In the next six months, a large amount of CRE loans originated in 2006 and currently held in CMBS will

need to be refinanced. Assuming economic activity progresses in line with consensus forecasts, how are the

standards that your bank would apply to such CRE loans different from those that you expect to apply to

other CRE loans?

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Considerably tighter 0 0.0 0 0.0 0 0.0

Somewhat tighter 8 12.1 6 14.6 2 8.0

About the same 57 86.4 34 82.9 23 92.0

Somewhat easier 0 0.0 0 0.0 0 0.0

Considerably easier 0 0.0 0 0.0 0 0.0

Total 66 100.0 41 100.0 25 100.0
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 24-25 ask about seven categories of residential mortgage loans at your bank: GovernmentSponsored 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 24 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 25 deals with changes in demand for

loans in each of the seven loan categories over the past three months.

24. 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 1 1.6 0 0.0 1 3.7

Remained basically unchanged 53 85.5 29 82.9 24 88.9

Eased somewhat 8 12.9 6 17.1 2 7.4

Eased considerably 0 0.0 0 0.0 0 0.0

Total 62 100.0 35 100.0 27 100.0

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 2 3.6 0 0.0 2 8.0

Remained basically unchanged 51 92.7 29 96.7 22 88.0

Eased somewhat 2 3.6 1 3.3 1 4.0

Eased considerably 0 0.0 0 0.0 0 0.0

Total 55 100.0 30 100.0 25 100.0

For this question, 11 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 0 0.0 0 0.0 0 0.0

Remained basically unchanged 54 94.7 29 90.6 25 100.0

Eased somewhat 3 5.3 3 9.4 0 0.0

Eased considerably 0 0.0 0 0.0 0 0.0

Total 57 100.0 32 100.0 25 100.0

For this question, 9 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 0 0.0 0 0.0 0 0.0

Remained basically unchanged 56 93.3 31 91.2 25 96.2

Eased somewhat 4 6.7 3 8.8 1 3.8

Eased considerably 0 0.0 0 0.0 0 0.0

Total 60 100.0 34 100.0 26 100.0

For this question, 6 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 1.7 0 0.0 1 4.2

Remained basically unchanged 54 91.5 33 94.3 21 87.5

Eased somewhat 4 6.8 2 5.7 2 8.3

Eased considerably 0 0.0 0 0.0 0 0.0

Total 59 100.0 35 100.0 24 100.0

For this question, 7 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

Remained basically unchanged 53 94.6 32 94.1 21 95.5

Eased somewhat 3 5.4 2 5.9 1 4.5

Eased considerably 0 0.0 0 0.0 0 0.0

Total 56 100.0 34 100.0 22 100.0

For this question, 10 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:

Responses are not reported when the number of respondents is 3 or fewer.
25. 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 0 0.0 0 0.0 0 0.0

Moderately stronger 22 35.5 13 37.1 9 33.3

About the same 34 54.8 19 54.3 15 55.6

Moderately weaker 6 9.7 3 8.6 3 11.1

Substantially weaker 0 0.0 0 0.0 0 0.0

Total 62 100.0 35 100.0 27 100.0

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 13 23.6 6 20.0 7 28.0

About the same 37 67.3 21 70.0 16 64.0

Moderately weaker 5 9.1 3 10.0 2 8.0

Substantially weaker 0 0.0 0 0.0 0 0.0

Total 55 100.0 30 100.0 25 100.0

For this question, 11 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 1 1.7 1 3.1 0 0.0

Moderately stronger 12 20.7 5 15.6 7 26.9

About the same 43 74.1 26 81.3 17 65.4

Moderately weaker 2 3.4 0 0.0 2 7.7

Substantially weaker 0 0.0 0 0.0 0 0.0

Total 58 100.0 32 100.0 26 100.0

For this question, 8 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 5.0 2 5.9 1 3.8

Moderately stronger 14 23.3 10 29.4 4 15.4

About the same 40 66.7 21 61.8 19 73.1

Moderately weaker 3 5.0 1 2.9 2 7.7

Substantially weaker 0 0.0 0 0.0 0 0.0

Total 60 100.0 34 100.0 26 100.0

For this question, 6 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 1 1.7 1 2.9 0 0.0

Moderately stronger 10 16.9 7 20.0 3 12.5

About the same 44 74.6 25 71.4 19 79.2

Moderately weaker 4 6.8 2 5.7 2 8.3

Substantially weaker 0 0.0 0 0.0 0 0.0

Total 59 100.0 35 100.0 24 100.0

For this question, 7 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 1 1.9 1 3.0 0 0.0

Moderately stronger 6 11.1 5 15.2 1 4.8

About the same 43 79.6 25 75.8 18 85.7

Moderately weaker 4 7.4 2 6.1 2 9.5

Substantially weaker 0 0.0 0 0.0 0 0.0

Total 54 100.0 33 100.0 21 100.0

For this question, 12 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:

Responses are not reported when the number of respondents is 3 or fewer.
Questions 26-27 ask about revolving home equity lines of credit at your bank. Question 26 deals with

changes in your bank's credit standards over the past three months. Question 27 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.

26. Over the past three months, how have your bank's credit standards for approving applications for

revolving home equity lines of credit changed?

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably 0 0.0 0 0.0 0 0.0

Tightened somewhat 1 1.5 1 2.6 0 0.0

Remained basically unchanged 61 92.4 35 89.7 26 96.3

Eased somewhat 4 6.1 3 7.7 1 3.7

Eased considerably 0 0.0 0 0.0 0 0.0

Total 66 100.0 39 100.0 27 100.0

27. Apart from normal seasonal variation, how has demand for revolving home equity lines of credit changed

over the past three months? (Please consider only funds actually disbursed as opposed to requests for new or

increased lines of credit.)

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Substantially stronger 0 0.0 0 0.0 0 0.0

Moderately stronger 18 27.3 12 30.8 6 22.2

About the same 37 56.1 20 51.3 17 63.0

Moderately weaker 11 16.7 7 17.9 4 14.8

Substantially weaker 0 0.0 0 0.0 0 0.0

Total 66 100.0 39 100.0 27 100.0
Questions 28-37 ask about consumer lending at your bank. Question 28 deals with changes in your bank's

willingness to make consumer loans over the past three months. Questions 29-34 deal with changes in credit

standards and loan terms over the same period. Questions 35-37deal 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.

28. Please indicate your bank's willingness to make consumer installment loans now as opposed to three

months ago.

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Much more willing 1 1.5 1 2.7 0 0.0

Somewhat more willing 9 13.8 5 13.5 4 14.3

About unchanged 54 83.1 31 83.8 23 82.1

Somewhat less willing 1 1.5 0 0.0 1 3.6

Much less willing 0 0.0 0 0.0 0 0.0

Total 65 100.0 37 100.0 28 100.0

29. 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 2 3.8 2 5.9 0 0.0

Remained basically unchanged 46 86.8 28 82.4 18 94.7

Eased somewhat 4 7.5 3 8.8 1 5.3

Eased considerably 1 1.9 1 2.9 0 0.0

Total 53 100.0 34 100.0 19 100.0
30. 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 5 8.2 5 14.7 0 0.0

Remained basically unchanged 49 80.3 23 67.6 26 96.3

Eased somewhat 7 11.5 6 17.6 1 3.7

Eased considerably 0 0.0 0 0.0 0 0.0

Total 61 100.0 34 100.0 27 100.0

31. 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 2 3.1 1 2.8 1 3.6

Remained basically unchanged 56 87.5 31 86.1 25 89.3

Eased somewhat 6 9.4 4 11.1 2 7.1

Eased considerably 0 0.0 0 0.0 0 0.0

Total 64 100.0 36 100.0 28 100.0
32. 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 3 6.0 3 9.4 0 0.0

Remained basically unchanged 45 90.0 28 87.5 17 94.4

Eased somewhat 2 4.0 1 3.1 1 5.6

Eased considerably 0 0.0 0 0.0 0 0.0

Total 50 100.0 32 100.0 18 100.0

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 4.0 2 6.3 0 0.0

Remained basically unchanged 48 96.0 30 93.8 18 100.0

Eased somewhat 0 0.0 0 0.0 0 0.0

Eased considerably 0 0.0 0 0.0 0 0.0

Total 50 100.0 32 100.0 18 100.0
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

Remained basically unchanged 50 100.0 32 100.0 18 100.0

Eased somewhat 0 0.0 0 0.0 0 0.0

Eased considerably 0 0.0 0 0.0 0 0.0

Total 50 100.0 32 100.0 18 100.0

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

Remained basically unchanged 49 98.0 31 96.9 18 100.0

Eased somewhat 1 2.0 1 3.1 0 0.0

Eased considerably 0 0.0 0 0.0 0 0.0

Total 50 100.0 32 100.0 18 100.0
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 4.0 2 6.3 0 0.0

Remained basically unchanged 47 94.0 30 93.8 17 94.4

Eased somewhat 1 2.0 0 0.0 1 5.6

Eased considerably 0 0.0 0 0.0 0 0.0

Total 50 100.0 32 100.0 18 100.0

33. 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 1 1.6 1 2.9 0 0.0

Remained basically unchanged 59 95.2 32 91.4 27 100.0

Eased somewhat 2 3.2 2 5.7 0 0.0

Eased considerably 0 0.0 0 0.0 0 0.0

Total 62 100.0 35 100.0 27 100.0
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 7 11.3 6 17.1 1 3.7

Remained basically unchanged 49 79.0 24 68.6 25 92.6

Eased somewhat 6 9.7 5 14.3 1 3.7

Eased considerably 0 0.0 0 0.0 0 0.0

Total 62 100.0 35 100.0 27 100.0

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 2 3.2 2 5.7 0 0.0

Remained basically unchanged 60 96.8 33 94.3 27 100.0

Eased somewhat 0 0.0 0 0.0 0 0.0

Eased considerably 0 0.0 0 0.0 0 0.0

Total 62 100.0 35 100.0 27 100.0
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 4 6.5 3 8.6 1 3.7

Remained basically unchanged 55 88.7 29 82.9 26 96.3

Eased somewhat 3 4.8 3 8.6 0 0.0

Eased considerably 0 0.0 0 0.0 0 0.0

Total 62 100.0 35 100.0 27 100.0

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 4.8 2 5.7 1 3.7

Remained basically unchanged 59 95.2 33 94.3 26 96.3

Eased somewhat 0 0.0 0 0.0 0 0.0

Eased considerably 0 0.0 0 0.0 0 0.0

Total 62 100.0 35 100.0 27 100.0
34. Over the past three months, how has your bank changed the following terms and conditions on consumer

loans other than credit card and auto loans ?

a. Maximum maturity

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably 0 0.0 0 0.0 0 0.0

Tightened somewhat 0 0.0 0 0.0 0 0.0

Remained basically unchanged 64 100.0 36 100.0 28 100.0

Eased somewhat 0 0.0 0 0.0 0 0.0

Eased considerably 0 0.0 0 0.0 0 0.0

Total 64 100.0 36 100.0 28 100.0

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 3.1 2 5.6 0 0.0

Remained basically unchanged 59 92.2 34 94.4 25 89.3

Eased somewhat 3 4.7 0 0.0 3 10.7

Eased considerably 0 0.0 0 0.0 0 0.0

Total 64 100.0 36 100.0 28 100.0
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

Remained basically unchanged 64 100.0 36 100.0 28 100.0

Eased somewhat 0 0.0 0 0.0 0 0.0

Eased considerably 0 0.0 0 0.0 0 0.0

Total 64 100.0 36 100.0 28 100.0

d. Minimum required credit score (increased score=tightened, reduced score=eased)

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Tightened considerably 0 0.0 0 0.0 0 0.0

Tightened somewhat 2 3.1 2 5.6 0 0.0

Remained basically unchanged 61 95.3 33 91.7 28 100.0

Eased somewhat 1 1.6 1 2.8 0 0.0

Eased considerably 0 0.0 0 0.0 0 0.0

Total 64 100.0 36 100.0 28 100.0
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 3.1 1 2.8 1 3.6

Remained basically unchanged 60 93.8 34 94.4 26 92.9

Eased somewhat 2 3.1 1 2.8 1 3.6

Eased considerably 0 0.0 0 0.0 0 0.0

Total 64 100.0 36 100.0 28 100.0

35. Apart from normal seasonal variation, how has demand from individuals or households for credit card

loans changed over the past three months?

All Respondents Large Banks Other Banks

Banks Percent Banks Percent Banks Percent

Substantially stronger 1 2.0 1 3.0 0 0.0

Moderately stronger 7 13.7 5 15.2 2 11.1

About the same 38 74.5 24 72.7 14 77.8

Moderately weaker 5 9.8 3 9.1 2 11.1

Substantially weaker 0 0.0 0 0.0 0 0.0

Total 51 100.0 33 100.0 18 100.0
36. 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 1.6 1 2.9 0 0.0

Moderately stronger 14 23.0 7 20.6 7 25.9

About the same 42 68.9 22 64.7 20 74.1

Moderately weaker 4 6.6 4 11.8 0 0.0

Substantially weaker 0 0.0 0 0.0 0 0.0

Total 61 100.0 34 100.0 27 100.0

37. 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 10 15.6 4 11.1 6 21.4

About the same 52 81.3 30 83.3 22 78.6

Moderately weaker 2 3.1 2 5.6 0 0.0

Substantially weaker 0 0.0 0 0.0 0 0.0

Total 64 100.0 36 100.0 28 100.0

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, 2015. The

combined assets of the 42 large banks totaled $9.4 trillion, compared to $9.7 trillion for the entire panel of 70

banks, and $13.5 trillion for all domestically chartered, federally insured commercial banks.
Table 2

1

(Status of policy as of April 2016)

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 6 27.3

Remained basically unchanged 16 72.7

Eased somewhat 0 0.0

Eased considerably 0 0.0

Total 22 100.0
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 4 18.2

Remained basically unchanged 17 77.3

Eased somewhat 1 4.5

Eased considerably 0 0.0

Total 22 100.0

b. Maximum maturity of loans or credit lines

All Respondents

Banks Percent

Tightened considerably 0 0.0

Tightened somewhat 2 9.1

Remained basically unchanged 20 90.9

Eased somewhat 0 0.0

Eased considerably 0 0.0

Total 22 100.0
c. Costs of credit lines

All Respondents

Banks Percent

Tightened considerably 0 0.0

Tightened somewhat 3 13.6

Remained basically unchanged 19 86.4

Eased somewhat 0 0.0

Eased considerably 0 0.0

Total 22 100.0

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 4 18.2

Remained basically unchanged 18 81.8

Eased somewhat 0 0.0

Eased considerably 0 0.0

Total 22 100.0

e. Premiums charged on riskier loans

All Respondents

Banks Percent

Tightened considerably 0 0.0

Tightened somewhat 6 27.3

Remained basically unchanged 16 72.7

Eased somewhat 0 0.0

Eased considerably 0 0.0

Total 22 100.0
f. Loan covenants

All Respondents

Banks Percent

Tightened considerably 0 0.0

Tightened somewhat 2 9.1

Remained basically unchanged 20 90.9

Eased somewhat 0 0.0

Eased considerably 0 0.0

Total 22 100.0

g. Collateralization requirements

All Respondents

Banks Percent

Tightened considerably 0 0.0

Tightened somewhat 0 0.0

Remained basically unchanged 22 100.0

Eased somewhat 0 0.0

Eased considerably 0 0.0

Total 22 100.0

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

Remained basically unchanged 20 100.0

Eased somewhat 0 0.0

Eased considerably 0 0.0

Total 20 100.0
3. If your bank has tightened or eased its credit standards or its terms for C&I loans or credit lines over the

past three months (as described in questions 1 and 2), how important have been the following possible reasons

for the change?

A. Possible reasons for tightening credit standards or loan terms:

a. Deterioration in your bank's current or expected capital position

All Respondents

Banks Percent

Not important 8 100.0

Somewhat important 0 0.0

Very important 0 0.0

Total 8 100.0

b. Less favorable or more uncertain economic outlook

All Respondents

Banks Percent

Not important 3 37.5

Somewhat important 5 62.5

Very important 0 0.0

Total 8 100.0

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

All Respondents

Banks Percent

Not important 2 25.0

Somewhat important 0 0.0

Very important 6 75.0

Total 8 100.0
d. Less aggressive competition from other banks or nonbank lenders (other financial

intermediaries or the capital markets)

All Respondents

Banks Percent

Not important 8 100.0

Somewhat important 0 0.0

Very important 0 0.0

Total 8 100.0

e. Reduced tolerance for risk

All Respondents

Banks Percent

Not important 2 25.0

Somewhat important 6 75.0

Very important 0 0.0

Total 8 100.0

f. Decreased liquidity in the secondary market for these loans

All Respondents

Banks Percent

Not important 4 50.0

Somewhat important 4 50.0

Very important 0 0.0

Total 8 100.0
g. Deterioration in your bank's current or expected liquidity position

All Respondents

Banks Percent

Not important 8 100.0

Somewhat important 0 0.0

Very important 0 0.0

Total 8 100.0

h. Increased concerns about the potential effects of legislative changes, supervisory actions, or

accounting standards

All Respondents

Banks Percent

Not important 6 75.0

Somewhat important 2 25.0

Very important 0 0.0

Total 8 100.0

B. Possible reasons for easing credit standards or loan terms:

a. Improvement in your bank's current or expected capital position

Responses are not reported when the number of respondents is 3 or fewer.

b. More favorable or less uncertain economic outlook

Responses are not reported when the number of respondents is 3 or fewer.

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

Responses are not reported when the number of respondents is 3 or fewer.

d. More 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. Increased tolerance for risk

Responses are not reported when the number of respondents is 3 or fewer.
f. Increased liquidity in the secondary market for these loans

Responses are not reported when the number of respondents is 3 or fewer.

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

Responses are not reported when the number of respondents is 3 or fewer.

h. Reduced 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.

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 9.1

About the same 14 63.6

Moderately weaker 6 27.3

Substantially weaker 0 0.0

Total 22 100.0

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. Customer 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

All Respondents

Banks Percent

Not important 6 100.0

Somewhat important 0 0.0

Very important 0 0.0

Total 6 100.0

b. Customer accounts receivable financing needs decreased

All Respondents

Banks Percent

Not important 6 100.0

Somewhat important 0 0.0

Very important 0 0.0

Total 6 100.0
c. Customer investment in plant or equipment decreased

All Respondents

Banks Percent

Not important 3 50.0

Somewhat important 2 33.3

Very important 1 16.7

Total 6 100.0

d. Customer internally generated funds increased

All Respondents

Banks Percent

Not important 6 100.0

Somewhat important 0 0.0

Very important 0 0.0

Total 6 100.0

e. Customer merger or acquisition financing needs decreased

All Respondents

Banks Percent

Not important 1 16.7

Somewhat important 4 66.7

Very important 1 16.7

Total 6 100.0
f. Customer borrowing shifted from your bank to other bank or nonbank sources because these

other sources became more attractive

All Respondents

Banks Percent

Not important 5 83.3

Somewhat important 1 16.7

Very important 0 0.0

Total 6 100.0

g. Customer precautionary demand for cash and liquidity decreased

All Respondents

Banks Percent

Not important 6 100.0

Somewhat important 0 0.0

Very important 0 0.0

Total 6 100.0

6. At your bank, apart from normal seasonal variation, how has the number of inquiries from potential

business borrowers regarding the availability and terms of new credit lines or increases in existing lines

changed over the past three months? (Please consider only inquiries for additional or increased C&I lines as

opposed to the refinancing of existing loans.)

All Respondents

Banks Percent

The number of inquiries has increased substantially 0 0.0

The number of inquiries has increased moderately 1 4.8

The number of inquiries has stayed about the same 18 85.7

The number of inquiries has decreased moderately 2 9.5

The number of inquiries has decreased substantially 0 0.0

Total 21 100.0
Over the past year, 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 bank's books were 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 lending policies made by your bank in response to developments in

the oil and natural gas drilling/extraction sector. Question asks about possible spillover effects from declines

in energy commodity prices and associated declines in energy sector activities to other loan types.

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 20 percent 1 5.0

More than 10 percent but less than 20 percent 7 35.0

More than 5 percent but less than 10 percent 8 40.0

More than 1 percent but less than 5 percent 4 20.0

Less than 1 percent 0 0.0

Total 20 100.0

For this question, 1 respondent answered “My bank does not have any outstanding loans or 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 futures prices, what is your outlook for delinquencies and charge-offs on your

bank's existing loans to firms in the oil and natural gas drilling/extraction sector over the remainder of 2016?

All Respondents

Banks Percent

Loan quality is likely to improve substantially 0 0.0

Loan quality is likely to improve somewhat 0 0.0

Loan quality is likely to remain around current levels 6 30.0

Loan quality is likely to deteriorate somewhat 13 65.0

Loan quality is likely to deteriorate substantially 1 5.0

Total 20 100.0

For this question, 1 respondent answered “My bank does not have any outstanding loans to firms

in the oil and natural gas drilling/extraction sector.”

9. Please indicate how important each of the following actions have been 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 over the past

year.

a. Tightening lending policies on new loans or lines of credit made to firms in this sector

All Respondents

Banks Percent

Not important 2 10.0

Somewhat important 6 30.0

Very important 12 60.0

Total 20 100.0
b. Enforcing material adverse change clauses or other covenants to limit draws on existing credit

lines to firms in this sector

All Respondents

Banks Percent

Not important 8 42.1

Somewhat important 8 42.1

Very important 3 15.8

Total 19 100.0

c. Restructuring outstanding loans to make them more robust to the changed outlook for energy

prices

All Respondents

Banks Percent

Not important 4 21.1

Somewhat important 5 26.3

Very important 10 52.6

Total 19 100.0

d. Requiring additional collateral to better secure loans or credit lines to firms in this sector

All Respondents

Banks Percent

Not important 3 15.0

Somewhat important 6 30.0

Very important 11 55.0

Total 20 100.0
e. Setting aside additional reserves for a potential increase in loan losses

All Respondents

Banks Percent

Not important 6 30.0

Somewhat important 8 40.0

Very important 6 30.0

Total 20 100.0

f. Tightening lending policies on new loans or credit lines made to firms in other sectors

All Respondents

Banks Percent

Not important 8 40.0

Somewhat important 9 45.0

Very important 3 15.0

Total 20 100.0

g. Hedging the risks arising from declines in energy prices through derivatives contracts

All Respondents

Banks Percent

Not important 9 47.4

Somewhat important 9 47.4

Very important 1 5.3

Total 19 100.0
h. My bank has not needed to mitigate risks of loan losses made to firms in this sector

All Respondents

Banks Percent

Not important 7 50.0

Somewhat important 3 21.4

Very important 4 28.6

Total 14 100.0
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 7.1

Remained basically unchanged 13 92.9

Eased somewhat 0 0.0

Eased considerably 0 0.0

Total 14 100.0

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 1 7.1

About the same 8 57.1

Moderately weaker 4 28.6

Substantially weaker 1 7.1

Total 14 100.0
Questions 12-13 ask about how your bank has changed its lending policies on CRE loans over the past year.

12. Over the past year, how has your bank changed the following policies on CRE loans?

a. Maximum loan size

All Respondents

Banks Percent

Tightened considerably 0 0.0

Tightened somewhat 0 0.0

Remained basically unchanged 13 92.9

Eased somewhat 1 7.1

Eased considerably 0 0.0

Total 14 100.0

b. Maximum loan maturity

All Respondents

Banks Percent

Tightened considerably 0 0.0

Tightened somewhat 0 0.0

Remained basically unchanged 14 100.0

Eased somewhat 0 0.0

Eased considerably 0 0.0

Total 14 100.0
c. Spreads of loan rates over your bank's cost of funds (wider spreads=tightened, narrower

spreads=eased)

All Respondents

Banks Percent

Tightened considerably 1 7.1

Tightened somewhat 2 14.3

Remained basically unchanged 8 57.1

Eased somewhat 3 21.4

Eased considerably 0 0.0

Total 14 100.0

d. Loan-to-value ratios

All Respondents

Banks Percent

Tightened considerably 0 0.0

Tightened somewhat 1 7.1

Remained basically unchanged 13 92.9

Eased somewhat 0 0.0

Eased considerably 0 0.0

Total 14 100.0
e. Debt-service coverage ratios

All Respondents

Banks Percent

Tightened considerably 0 0.0

Tightened somewhat 1 7.1

Remained basically unchanged 13 92.9

Eased somewhat 0 0.0

Eased considerably 0 0.0

Total 14 100.0

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

Remained basically unchanged 14 100.0

Eased somewhat 0 0.0

Eased considerably 0 0.0

Total 14 100.0
g. Length of interest-only payment period (shorter interest-only periods=tightened, longer

interest-only periods=eased)

All Respondents

Banks Percent

Tightened considerably 0 0.0

Tightened somewhat 1 7.1

Remained basically unchanged 13 92.9

Eased somewhat 0 0.0

Eased considerably 0 0.0

Total 14 100.0
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 A, B, 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:

Responses are not reported when the number of respondents is 3 or fewer.
Yields on commercial mortgage-backed securities (CMBS) have increased considerably over the last six

months. At the same time, outstanding CRE loans held on banks' books have continued to grow robustly in

aggregate, according to the Federal Reserve's weekly H.8 statistical release, "Assets and Liabilities of

Commercial Banks in the United States." Questions 14-18 ask how your bank's lending policies and practices

regarding CRE loans have been affected by recent conditions in the CMBS market and by activities of

nonbank financial institutions.

14. How have conditions in the CMBS market affected the volume of CRE loan originations by your bank

over the past six months?

All Respondents

Banks Percent

Led to a substantial decrease 3 27.3

Led to a moderate decrease 1 9.1

Led to no change 7 63.6

Led to a moderate increase 0 0.0

Led to a substantial increase 0 0.0

Total 11 100.0

For this question, 5 respondents answered “My bank does not originate CRE loans.”

15. How have conditions in the CMBS market affected the volume of CRE loan securitizations by your bank

over the past six months?

All Respondents

Banks Percent

Led to a substantial decrease 2 22.2

Led to a moderate decrease 3 33.3

Led to no change 4 44.4

Led to a moderate increase 0 0.0

Led to a substantial increase 0 0.0

Total 9 100.0

For this question, 7 respondents answered “My bank does not securitize CRE loans.”
16. Apart from normal seasonal variation, how has demand for loans or lines of credit from nonbank financial

institutions, used to fund their CRE loan pipelines prior to securitization, changed over the past six 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

Banks Percent

Substantially stronger 0 0.0

Somewhat stronger 0 0.0

About the same 3 50.0

Somewhat weaker 1 16.7

Substantially weaker 2 33.3

Total 6 100.0

For this question, 9 respondents answered “My bank does not originate these types of loans or

credit lines.”

17. How have your bank’s credit standards for approving applications for loans or lines of credit to nonbank

financial institutions, used to fund their CRE loan pipelines prior to securitization, changed over the past six

months? (Please consider applications for new spot loans, and for new or increased credit lines.)

All Respondents

Banks Percent

Tightened considerably 0 0.0

Tightened somewhat 2 33.3

Remained basically unchanged 4 66.7

Eased somewhat 0 0.0

Eased considerably 0 0.0

Total 6 100.0

For this question, 9 respondents answered “My bank does not originate these types of loans or

credit lines.”
18. In the next six months, a large amount of CRE loans originated in 2006 and currently held in CMBS will

need to be refinanced. Assuming economic activity progresses in line with consensus forecasts, how are the

standards that your bank would apply to such CRE loans different from those that you expect to apply to

other CRE loans?

All Respondents

Banks Percent

Considerably tighter 0 0.0

Somewhat tighter 3 25.0

About the same 9 75.0

Somewhat easier 0 0.0

Considerably easier 0 0.0

Total 12 100.0

1. As of December 31, 2015, the 22 respondents had combined assets of $1.2 trillion, compared to $2.3

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.