Banking Conditions Survey
For this survey, Eleventh District banking executives were asked supplemental questions on outlook concerns and commercial real estate lending. Read the special questions results.
Loan volume continued increasing at a rapid pace in February while loan demand accelerated further. Credit tightening continued, but loan pricing declined. Loan nonperformance rose across all loan types, while growth in general business activity slowed. Bankers’ outlooks remain optimistic but have moderated. They expect improvement in loan demand and business activity but also a notable uptick in loan nonperformance six months from now.
Next release: April 7, 2025
Data were collected February 4–12, and 71 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.
Results Summary
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 | 18.3 | 16.0 | 39.4 | 39.4 | 21.1 |
Loan demand | 30.0 | 10.8 | 47.1 | 35.7 | 17.1 |
Nonperforming loans | 15.7 | 11.0 | 25.7 | 64.3 | 10.0 |
Loan pricing | –15.7 | –30.2 | 5.7 | 72.9 | 21.4 |
| Indicator | Current Index | Previous Index | % Reporting Eased | % Reporting No Change | % Reporting Tightened |
Credit standards and terms | –10.4 | –12.5 | 0.0 | 89.6 | 10.4 |
| 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 | 6.0 | 12.7 | 23.9 | 58.2 | 17.9 |
Nonperforming loans | 7.5 | 0.0 | 13.6 | 80.3 | 6.1 |
| Indicator | Current Index | Previous Index | % Reporting Eased | % Reporting No Change | % Reporting Tightened |
Credit standards and terms | –9.5 | –6.0 | 0.0 | 90.5 | 9.5 |
| 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 | 10.5 | 8.5 | 28.4 | 53.7 | 17.9 |
Nonperforming loans | 8.9 | 4.2 | 13.4 | 82.1 | 4.5 |
| Indicator | Current Index | Previous Index | % Reporting Eased | % Reporting No Change | % Reporting Tightened |
Credit standards and terms | –9.1 | –10.0 | 1.5 | 87.9 | 10.6 |
| 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 | 9.0 | 13.9 | 24.2 | 60.6 | 15.2 |
Nonperforming loans | 7.6 | 1.4 | 12.1 | 83.3 | 4.5 |
| Indicator | Current Index | Previous Index | % Reporting Eased | % Reporting No Change | % Reporting Tightened |
Credit standards and terms | –1.6 | –4.3 | 1.6 | 95.2 | 3.2 |
| 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 | –4.3 | –1.3 | 17.4 | 60.9 | 21.7 |
Nonperforming loans | 8.7 | 13.5 | 13.0 | 82.6 | 4.3 |
| Indicator | Current Index | Previous Index | % Reporting Eased | % Reporting No Change | % Reporting Tightened |
Credit standards and terms | –4.5 | –5.5 | 1.5 | 92.5 | 6.0 |
| 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 | 56.3 | 59.4 | 69.0 | 18.3 | 12.7 |
Nonperforming loans | 14.1 | 4.1 | 28.2 | 57.7 | 14.1 |
| 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 | 14.1 | 24.3 | 33.8 | 46.5 | 19.7 |
Six months from now | 45.6 | 60.0 | 60.3 | 25.0 | 14.7 |
Respondents were given an opportunity to comment on any issues that may be affecting their business.
These comments are from respondents’ completed surveys and have been edited for publication.
- The activity level has shown improvement, but ongoing questions about interest rates and the impact of tariffs and other Trump 2.0 policies have led to a wait-and-see approach by some business owners. We are optimistic that demand for credit will improve as the year progresses.
- We saw increased activity post-election. There may be a slight pause in optimism until we get more clarity around all the presidential directives and uncertainty decreases.
- We are generally concerned with holding loan rates and lowering the deposit cost. Our margin has tightened. We are concerned with credit quality also. Past-dues have increased. We have made efforts to tighten our credit underwriting.
- The general outlook has improved as a result of the change in administration.
Historical data can be downloaded dating back to March 2017. For the definitions, see data definitions.
NOTE: The following series were discontinued in May 2020: volume of core deposits, cost of funds, non-interest income and net interest margin.
Questions regarding the Banking Conditions Survey can be addressed to Mariam Yousuf at mariam.yousuf@dal.frb.org.
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