Banking Conditions Survey

  Loan demand and loan volumes continued to increase at a robust pace over the past six weeks, despite a sharp rise in loan pricing. Loan volume increases spanned lending types, and growth remained strongest for commercial real estate loans. Nonperforming loans continued to decrease, and credit standards and terms tightened slightly. Contacts expressed concerns about the effects of interest rate increases, inflation, rising wages and staffing shortages. Respondents expect increases in loan demand and decreases in nonperforming loans over the next six months. While general business activity continued to improve over the previous reporting period, expectations for six months from now were mixed.

  Next release: May 16, 2022

Data were collected March 22–30, and 64 financial institutions responded to the survey. The Federal Reserve Bank of Dallas conducts the Banking Conditions Survey twice each quarter to obtain a timely assessment of activity at banks and credit unions headquartered in the Eleventh Federal Reserve District. CEOs or senior loan officers of financial institutions report on how conditions have changed for indicators such as loan volume, nonperforming loans and loan pricing. Respondents are also asked to report on their banking outlook and their evaluation of general business activity.Survey responses are used to calculate an index for each indicator. Each index is calculated by subtracting the percentage of respondents reporting a decrease (or tightening) from the percentage reporting an increase (or easing). When the share of respondents reporting an increase exceeds the share reporting a decrease, the index will be greater than zero, suggesting the indicator has increased over the prior reporting period. If the share of respondents reporting a decrease exceeds the share reporting an increase, the index will be below zero, suggesting the indicator has decreased over the prior reporting period. An index will be zero when the number of respondents reporting an increase is equal to the number reporting a decrease.

  Historical data are available from March 2017.

Total Loans:Over the past six weeks, how have the following changed?
Indicator Current Index Previous Index % Reporting Increase % Reporting No Change % Reporting Decrease
Loan volume 39.1 37.5 54.7 29.7 15.6
Loan demand 36.5 33.3 50.8 34.9 14.3
Nonperforming loans –14.3 –18.1 9.5 66.7 23.8
Loan pricing 52.4 11.4 52.4 47.6 0.0
Indicator Current Index Previous Index % Reporting Eased % Reporting No Change % Reporting Tightened
Credit standards and terms –5.1 –5.8 5.1 84.7 10.2
Commercial and Industrial Loans:Over the past six weeks, how have the following changed?
Indicator Current Index Previous Index % Reporting Increase % Reporting No Change % Reporting Decrease
Loan volume 21.7 22.4 31.7 58.3 10.0
Nonperforming loans –15.0 –16.7 3.3 78.3 18.3
Indicator Current Index Previous Index % Reporting Eased % Reporting No Change % Reporting Tightened
Credit standards and terms –5.0 –4.6 0.0 95.0 5.0
Commercial Real Estate Loans:Over the past six weeks, how have the following changed?
Indicator Current Index Previous Index % Reporting Increase % Reporting No Change % Reporting Decrease
Loan volume 43.4 30.9 51.7 40.0 8.3
Nonperforming loans –10.2 –16.1 1.7 86.4 11.9
Indicator Current Index Previous Index % Reporting Eased % Reporting No Change % Reporting Tightened
Credit standards and terms –1.7 –9.0 5.2 87.9 6.9
Residential Real Estate Loans:Over the past six weeks, how have the following changed?
Indicator Current Index Previous Index % Reporting Increase % Reporting No Change % Reporting Decrease
Loan volume 12.9 14.5 33.9 45.2 21.0
Nonperforming loans –1.6 –10.1 6.5 85.5 8.1
Indicator Current Index Previous Index % Reporting Eased % Reporting No Change % Reporting Tightened
Credit standards and terms 0.0 –4.4 0.0 100.0 0.0
Consumer Loans:Over the past six weeks, how have the following changed?
Indicator Current Index Previous Index % Reporting Increase % Reporting No Change % Reporting Decrease
Loan volume 9.5 2.8 22.2 65.1 12.7
Nonperforming loans –3.3 –4.1 4.8 87.1 8.1
Indicator Current Index Previous Index % Reporting Eased % Reporting No Change % Reporting Tightened
Credit standards and terms 1.6 –1.4 1.6 98.4 0.0
Banking Outlook:What is your expectation for the following items six months from now?
Indicator Current Index Previous Index % Reporting Increase % Reporting No Change % Reporting Decrease
Total loan demand 35.9 51.4 54.7 26.6 18.8
Nonperforming loans –4.8 –5.7 12.9 69.4 17.7
General Business Activity:What is your evaluation of the level of activity?
Indicator Current Index Previous Index % Reporting Better % Reporting No Change % Reporting Worse
Over the past six weeks 28.1 38.9 42.2 43.8 14.1
Six months from now 0.0 35.2 31.1 37.7 31.1

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