Banking Conditions Survey

Special Questions

December 2024

For this survey, respondents were asked supplemental questions about credit standards and commercial lending for small businesses. Data were collected December 16–24, and 58 bankers responded to the survey.

1. How do you expect credit standards and terms to change over the next three months for the following loan categories?

	Ease considerably (percent)	Ease somewhat (percent)	Remain unchanged (percent)	Tighten somewhat (percent)	Tighten considerably (percent)
Commercial and industrial	0.0	3.6	80.0	14.5	1.8
Commercial real estate	0.0	3.7	85.2	9.3	1.9
Residential real estate	0.0	3.7	87.0	9.3	0.0
Consumer	0.0	1.8	83.6	14.5	0.0

NOTES: 58 responses. This question was also posed in Aug. 2023, Sep. 2023, Dec. 2023, Mar. 2024, June 2024 and Oct. 2024.

2. How do you expect credit standards and terms to change over the next three months for the following categories of commercial real estate lending?

	Ease considerably (percent)	Ease somewhat (percent)	Remain unchanged (percent)	Tighten somewhat (percent)	Tighten considerably (percent)
Construction and land development	0.0	3.8	77.4	17.0	1.9
Industrial	0.0	1.9	81.1	17.0	0.0
Retail	0.0	1.9	83.0	15.1	0.0
Multifamily	0.0	1.9	79.2	18.9	0.0
Office	0.0	0.0	71.2	23.1	5.8
Hotels/lodging	0.0	1.9	76.9	19.2	1.9
Other	0.0	2.2	91.1	6.7	0.0

NOTES: 53 responses. This question was also posed in Sep. 2023, Dec. 2023, Mar. 2024, June 2024 and Oct. 2024.

3. Approximately what fraction of your existing loan portfolio finances C&I loans for small businesses (revenue less than $5 million)?

	Dec. '24 (percent)
Average response	14.0

NOTES: 49 responses. Respondents entered a value; shown is the average of those values.

4. Approximately what fraction of your existing loan portfolio finances CRE loans for small businesses (revenue less than $5 million)?

	Dec. '24 (percent)
Average response	29.7

NOTES: 48 responses. Respondents entered a value; shown is the average of those values.

5. Small business C&I loans: Over the past six weeks, how have the following changed for small business C&I loans?

Indicator	Increased (percent)	No change (percent)	Decreased (percent)
Loan volume	19.2	65.4	15.4
Loan demand	23.5	62.7	13.7
Nonperforming loans	11.8	86.3	2.0
Indicator	Eased (percent)	No change (percent)	Tightened (percent)
Credit standards and terms	0.0	93.9	6.1

NOTE: 52 responses.

6. Small business CRE loans: Over the past six weeks, how have the following changed for small business CRE loans?

Indicator	Increased (percent)	No change (percent)	Decreased (percent)
Loan volume	23.1	63.5	13.5
Loan demand	26.9	57.7	15.4
Nonperforming loans	3.9	94.1	2.0
Indicator	Eased (percent)	No change (percent)	Tightened (percent)
Credit standards and terms	0.0	94.2	5.8

NOTE: 52 responses.

Special Questions Comments

These comments have been edited for publication.

Generally, our customers have a positive view of their economic situation since the election. Most are waiting to see how far the rates will decline before they start deploying their capital.

Questions regarding the Banking Conditions Survey can be addressed to Mariam Yousuf at mariam.yousuf@dal.frb.org.