Banking Conditions Survey

Results summary

Historical data are available from March 2017.

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.

• It’s imperative that the stabilization of the price of oil occurs quickly (30 to 60 days) so that it doesn’t create a long-term economic drain on businesses and consumers.
• There is a tremendous amount of uncertainty in the economy at the moment. It is difficult for customers to have a positive business attitude. The partisan politics, spiking energy cost, international conflict, uncertainty at the Federal Reserve due to political pressure all add to an economic decision stagnation. Some stability on some fronts would be helpful to grow this economy.
• Recent events in Iran and surrounding countries have created uncertainty in the domestic economy while dramatically increasing the price of fuel. Persistent personal consumption expenditures reports above 2.5 percent make it difficult to determine what the Federal Open Market Committee will do in the short term.
• Loan demand has been increasing due to a major project in the Monroe market. Commercial loan nonperformance seems to have leveled out. Consumer, residential real estate and consumer nonperformance are increasing. We will plan to tighten underwriting and hold rates due to liquidity pressure on the balance sheet.
• We are seeing some opportunities for commercial real estate and commercial and industrial lending in some of our markets. All of our commercial customers are now wanting floating rate loans in anticipation of continued rate cuts. I am not so optimistic because of inflation pressures associated with oil and gas due to the Iran conflict.