Banking Conditions Survey
For this survey, Eleventh District banking executives were asked supplemental questions on credit standards and loan demand. Read the special questions results.
Loan volume and demand increased in December after decreasing in the previous month. Loan volume was driven up by commercial real estate loans. Credit standards and terms tightened; however, loan pricing continued to decline. Overall loan performance deteriorated at a slower pace than the prior survey. Bankers reported increasing general business activity. Their outlooks lean optimistic. Survey respondents expect growth in loan demand and business activity six months from now and a slight deterioration in loan performance.
Next release: February 17, 2025
Data were collected December 16–24, and 65 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 | 13.8 | –10.0 | 44.6 | 24.6 | 30.8 |
Loan demand | 10.9 | –7.1 | 37.5 | 35.9 | 26.6 |
Nonperforming loans | 7.9 | 14.3 | 18.8 | 70.3 | 10.9 |
Loan pricing | –60.3 | –52.2 | 0.0 | 39.7 | 60.3 |
| Indicator | Current Index | Previous Index | % Reporting Eased | % Reporting No Change | % Reporting Tightened |
Credit standards and terms | –8.3 | 0.0 | 0.0 | 91.7 | 8.3 |
| 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 | –5.0 | –9.2 | 20.0 | 55.0 | 25.0 |
Nonperforming loans | 1.7 | 7.8 | 10.0 | 81.7 | 8.3 |
| Indicator | Current Index | Previous Index | % Reporting Eased | % Reporting No Change | % Reporting Tightened |
Credit standards and terms | –6.8 | 3.1 | 0.0 | 93.2 | 6.8 |
| 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 | 15.0 | 6.1 | 36.7 | 41.7 | 21.7 |
Nonperforming loans | 1.7 | 10.7 | 10.0 | 81.7 | 8.3 |
| Indicator | Current Index | Previous Index | % Reporting Eased | % Reporting No Change | % Reporting Tightened |
Credit standards and terms | –8.5 | 0.0 | 1.7 | 88.1 | 10.2 |
| 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 | –3.3 | –1.6 | 19.7 | 57.4 | 23.0 |
Nonperforming loans | 6.6 | 6.1 | 11.5 | 83.6 | 4.9 |
| Indicator | Current Index | Previous Index | % Reporting Eased | % Reporting No Change | % Reporting Tightened |
Credit standards and terms | –3.3 | 3.1 | 0.0 | 96.7 | 3.3 |
| 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 | –13.9 | –17.1 | 13.8 | 58.5 | 27.7 |
Nonperforming loans | 4.6 | 8.8 | 13.8 | 76.9 | 9.2 |
| Indicator | Current Index | Previous Index | % Reporting Eased | % Reporting No Change | % Reporting Tightened |
Credit standards and terms | –1.6 | 2.9 | 0.0 | 98.4 | 1.6 |
| 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 | 44.6 | 26.1 | 60.0 | 24.6 | 15.4 |
Nonperforming loans | 4.6 | 14.7 | 21.5 | 61.5 | 16.9 |
| 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 | 4.7 | 1.4 | 26.2 | 52.3 | 21.5 |
Six months from now | 35.4 | 20.0 | 49.2 | 36.9 | 13.8 |
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.
- The election next year is a concern as the House and Senate could switch in party control with a large impact on the country as a whole. The influence of nonregulated industries entering the banking industry [is also a concern] .
- It just seems like all businesses have, for lack of a better term, a light case of the flu. There seems to be some hesitation to move forward with projects. The projects are not cancelled, just postponed or delayed while investors seem to ponder what’s next? We cannot identify the source of uncertainty, if it’s pending elections, wars, inflation, tariffs or just general business trends.
- Continued concern about mixed economic messaging; unemployment (while slightly rising) remains historically low, inflation remains elevated, yet economic stimulus is being added. This leads to longer term concerns about persistent, elevated inflation.
- We have noticed an uptick in consumer bankruptcies. Just something to watch!
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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