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.