Banking Conditions Survey
Special Questions
Special Questions
April 2025
For this survey, respondents were asked supplemental questions about deposits, credit standards and loan demand. Data were collected March 23-April 2, and 63 bankers responded to the survey.
1. Over the past six weeks, how has your volume of core deposits changed?
| Aug. '23 (percent) |
Sep. '23 (percent) |
Dec. '23 (percent) |
Mar. '24 (percent) |
Jun. '24 (percent) |
Oct. '24 (percent) |
Apr. '25 (percent) |
|
| Increased significantly | 3.0 | 4.6 | 4.8 | 2.9 | 2.7 | 4.1 | 3.2 |
| Increased slightly | 31.3 | 27.7 | 36.5 | 45.6 | 42.5 | 50.0 | 49.2 |
| No change | 20.9 | 20.0 | 25.4 | 26.5 | 28.8 | 32.4 | 27.0 |
| Decreased slightly | 41.8 | 41.5 | 31.7 | 23.5 | 26.0 | 10.8 | 20.6 |
| Decreased significantly | 3.0 | 6.2 | 1.6 | 1.5 | 0.0 | 2.7 | 0.0 |
NOTE: 63 responses.
2. Over the next six weeks, how do you expect your volume of core deposits to change?
| Aug. '23 (percent) |
Sep. '23 (percent) |
Dec. '23 (percent) |
Mar. '24 (percent) |
Jun. '24 (percent) |
Oct. '24 (percent) |
Apr. '25 (percent) |
|
| Increase significantly | 3.0 | 1.5 | 7.9 | 1.5 | 0.0 | 1.3 | 3.2 |
| Increase slightly | 35.8 | 41.5 | 49.2 | 41.2 | 47.2 | 54.7 | 43.5 |
| No change | 34.3 | 30.8 | 28.6 | 29.4 | 36.1 | 30.7 | 37.1 |
| Decrease slightly | 26.9 | 23.1 | 14.3 | 27.9 | 16.7 | 13.3 | 16.1 |
| Decrease significantly | 0.0 | 3.1 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
NOTE: 62 responses.
3. 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 | 1.7 | 76.7 | 21.7 | 0.0 |
| Commercial real estate | 0.0 | 3.4 | 72.9 | 23.7 | 0.0 |
| Residential real estate | 0.0 | 6.6 | 80.3 | 13.1 | 0.0 |
| Consumer | 0.0 | 4.9 | 77.0 | 18.0 | 0.0 |
NOTES: 61 responses. This question was also posed in Oct. '24.
4. 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 | 3.4 | 67.8 | 28.8 | 0.0 |
| Industrial | 0.0 | 1.7 | 81.0 | 17.2 | 0.0 |
| Retail | 0.0 | 0.0 | 74.1 | 25.9 | 0.0 |
| Multifamily | 0.0 | 1.7 | 69.5 | 28.8 | 0.0 |
| Office | 0.0 | 0.0 | 63.8 | 27.6 | 8.6 |
| Hotels/lodging | 0.0 | 1.7 | 64.4 | 33.9 | 0.0 |
| Other | 0.0 | 0.0 | 86.8 | 13.2 | 0.0 |
NOTES: 59 responses. This question was also posed in Oct. '24.
5a. If you have changed credit standards and terms for construction and land development CRE loans or are expecting to change them over the next 3 months, please provide details on why and how.
- Projects are getting extended, so we are holding to equity and curtailment requirements.
- We expect market risks to become less predictable until the economy resets under the new administration’s policies.
- We are seeing more rigor in underwriting with somewhat improved structure.
- We are seeing increased rates and increased equity requirements.
- We have concerns about an oversupply and the impact of tariffs.
- We’ve had no change in credit standards, as our standards have always been conservative.
- We’re just being conservative until we understand exactly where the economy is headed. Also, a factor is if Congress passes a budget. It will help to know the path of government.
- We will require a higher down payment in the amount of 5 percent.
- We are seeing increased vacancies and potential overbuilding in some of our markets.
- We are requiring slightly higher loan-to-value ratios.
5b. If you have changed credit standards and terms for income-producing CRE loans or are expecting to change them over the next 3 months, please provide details on why and how.
- We are holding to preleasing requirements and allowing less speculative deals.
- We are beginning to see signs of oversupply in some industrial submarkets. We will look to do less speculative development and require more pre-leasing.
- We are seeing increased rates and increased equity requirements.
- We have no change in credit standards, as our credit standards have always been conservative.
- We will require a higher down payment in the amount of 5 percent.
6. Over the past six weeks, how has loan demand changed for the following loan categories?
| Increased | No change | Decreased | |
| Commercial and industrial | 23.3 | 51.7 | 25.0 |
| Commercial real estate | 30.0 | 46.7 | 23.3 |
| Residential real estate | 25.0 | 51.7 | 23.3 |
| Consumer | 14.8 | 62.3 | 23.0 |
NOTE: 61 responses.
7. Over the next six months, how do you expect loan demand to change for the following loan categories?
| Increased | No change | Decreased | |
| Commercial and industrial | 30.0 | 51.7 | 18.3 |
| Commercial real estate | 38.3 | 41.7 | 20.0 |
| Residential real estate | 40.0 | 46.7 | 13.3 |
| Consumer | 24.6 | 54.1 | 21.3 |
NOTE: 61 responses.
Special Questions Comments
Survey participants are given the opportunity to submit comments on current issues that may be affecting their businesses. Some comments have been edited for grammar and clarity.
- Residential real estate is anticipated to remain the same unless we see a considerable decline in interest rates.
- Our financial institution is coming out of a period of lower loan demand, some of which was self-inflicted. We are more comfortable with our liquidity position and more willing to be slightly more aggressive in generating loans.
Questions regarding the Banking Conditions Survey can be addressed to Mariam Yousuf at mariam.yousuf@dal.frb.org.
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