Banking Conditions Survey

Special Questions

November 2023

For this survey, respondents were asked supplemental questions about outlook concerns, deposits and commercial real estate lending. Data were collected October 31-November 8, and 67 bankers responded to the survey.

1. What are the top three concerns around your institution’s outlook over the next six months, if any? Please rank in order of importance.

	May '23	Jun. '23	Aug. '23	Nov. '23
	Total (percent)	Total (percent)	Total (percent)	Total (percent)	Rank 1 (percent)	Rank 2 (percent)	Rank 3 (percent)
Net interest margin	46.8	54.8	42.6	58.2	28.4	15.2	15.2
Liquidity/deposit volume	61.3	54.8	57.4	56.7	25.4	18.2	13.6
Financial/economic uncertainty	46.8	43.5	33.8	38.8	13.4	15.2	10.6
Regulatory burden	35.5	29.0	42.6	31.3	4.5	7.6	19.7
Cybersecurity	22.6	19.4	23.5	26.9	7.5	7.6	12.1
Overall profitability	17.7	16.1	19.1	20.9	3.0	13.6	4.5
Loan demand	19.4	12.9	25.0	17.9	7.5	4.5	6.1
Unrealized losses on securities portfolio	14.5	16.1	7.4	14.9	6.0	6.1	3.0
Noncurrent loans	4.8	11.3	11.8	11.9	1.5	4.5	6.1
Competition for loans	8.1	3.2	11.8	9.0	1.5	4.5	3.0
Difficulty hiring and/or retaining employees	11.3	14.5	11.8	6.0	0.0	0.0	6.1
Commercial real estate risks	6.5	12.9	10.3	3.0	0.0	3.0	0.0
Other	1.6	3.2	1.5	1.5	1.5	0.0	0.0

NOTE: 67 responses.

2. Over the past six weeks, how has your volume of core deposits changed?

	Jun. '23 (percent)	Aug. '23 (percent)	Sep. '23 (percent)	Nov. '23 (percent)
Increased slightly	26.2	31.3	27.7	29.9
Increased significantly	0.0	3.0	4.6	0.0
No change	23.0	20.9	20.0	26.9
Decreased slightly	45.9	41.8	41.5	40.3
Decreased significantly	4.9	3.0	6.2	3.0

NOTE: 67 responses.

3. Over the next six weeks, how do you expect your volume of core deposits to change?

	Jun. '23 (percent)	Aug. '23 (percent)	Sep. '23 (percent)	Nov. '23 (percent)
Increase slightly	30.6	35.8	41.5	40.3
Increase significantly	1.6	3.0	1.5	1.5
No change	33.9	34.3	30.8	32.8
Decrease slightly	33.9	26.9	23.1	23.9
Decrease significantly	0.0	0.0	3.1	1.5

NOTES: 67 responses.

4. How concerned are you about the performance of the following categories in your commercial real estate (CRE) loan portfolio, on a scale of 1 (not concerned at all) to 5 (extremely concerned)?

	1 (not concerned at all)	2	3	4	5 (extremely concerned)
	Percent of responses
Construction and land development	18.0	39.3	29.5	9.8	3.3
Industrial	29.5	42.6	26.2	1.6	0.0
Retail	24.6	41.0	26.2	8.2	0.0
Multifamily	28.3	50.0	11.7	10.0	0.0
Office	16.7	26.7	35.0	13.3	8.3
Hotels/lodging	28.1	35.1	29.8	3.5	3.5

NOTES: 61 responses. This question was also posed in May and August.

Questions regarding the Banking Conditions Survey can be addressed to Emily Kerr at emily.kerr@dal.frb.org.