During July 2016, The Federal Reserve issued its Senior Loan Officer Opinion Survey on Bank Lending Practices. The survey included seventy one domestic banks and twenty three U.S. branches and agencies of foreign banks. As part of a community bank’s portfolio and risk monitoring, the results of the Survey should be considered. Please note continued competitive pressures and changes in CRE underwriting.
Lending standards for all categories of C&I loans are currently easier than the midpoints of the ranges that have prevailed since 2005
Domestic banks that reported having eased either their standards or terms on C&I loans pointed to more aggressive competition from other banks or nonbank lenders as an important reason for doing so
Standards on all types of CRE loans are currently tighter than the midpoints of their respective ranges
Domestic survey respondents generally indicated that their lending standards for CRE loans of all types tightened during the second quarter. In particular, a moderate net fraction of banks reported tightening standards for loans secured by nonfarm nonresidential properties, whereas significant net fractions of banks reported tightening standards for construction and land development loans and loans secured by multifamily residential properties
Net Percentage of Domestic Respondents Tightening Standards for CRE Loans