Banking Conditions Survey
For this survey, Eleventh District banking executives were asked supplemental questions on outlook concerns and loan performance. Read the special questions results.
Loan volume and demand growth continued to accelerate in May. Volume rose across loan types. Credit standards and terms tightened slightly, but loan pricing continued to decline. There was a broad-based deterioration in overall loan performance. Bankers reported increases in general business activity. Survey respondents expect strong growth in loan demand and moderate growth in business activity six months from now, but they also expect slight worsening loan performance.
Next release: June 29, 2026
Data were collected May 5–13, and 59 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 | 35.6 | 15.3 | 55.9 | 23.7 | 20.3 |
Loan demand | 35.6 | 23.8 | 52.5 | 30.5 | 16.9 |
Nonperforming loans | 16.9 | 8.4 | 25.4 | 66.1 | 8.5 |
Loan pricing | –18.6 | –27.1 | 1.7 | 78.0 | 20.3 |
| Indicator | Current Index | Previous Index | % Reporting Eased | % Reporting No Change | % Reporting Tightened |
Credit standards and terms | –5.2 | –5.2 | 1.8 | 91.2 | 7.0 |
| 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 | 15.1 | –9.4 | 30.2 | 54.7 | 15.1 |
Nonperforming loans | 1.9 | 5.8 | 13.2 | 75.5 | 11.3 |
| Indicator | Current Index | Previous Index | % Reporting Eased | % Reporting No Change | % Reporting Tightened |
Credit standards and terms | –7.7 | –5.8 | 0.0 | 92.3 | 7.7 |
| 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 | 24.5 | 22.6 | 39.6 | 45.3 | 15.1 |
Nonperforming loans | 3.7 | 15.6 | 13.0 | 77.8 | 9.3 |
| Indicator | Current Index | Previous Index | % Reporting Eased | % Reporting No Change | % Reporting Tightened |
Credit standards and terms | –3.7 | –7.8 | 1.9 | 92.6 | 5.6 |
| 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 | 7.1 | 5.6 | 23.2 | 60.7 | 16.1 |
Nonperforming loans | 5.3 | 7.4 | 10.7 | 83.9 | 5.4 |
| Indicator | Current Index | Previous Index | % Reporting Eased | % Reporting No Change | % Reporting Tightened |
Credit standards and terms | –3.6 | –2.0 | 0.0 | 96.4 | 3.6 |
| 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 | 3.4 | –6.9 | 20.3 | 62.7 | 16.9 |
Nonperforming loans | 8.5 | 0.0 | 11.9 | 84.7 | 3.4 |
| Indicator | Current Index | Previous Index | % Reporting Eased | % Reporting No Change | % Reporting Tightened |
Credit standards and terms | 0.0 | –7.1 | 0.0 | 100.0 | 0.0 |
| 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 | 40.6 | 49.1 | 54.2 | 32.2 | 13.6 |
Nonperforming loans | 6.7 | 3.4 | 22.0 | 62.7 | 15.3 |
| 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 | 10.2 | –1.7 | 32.2 | 45.8 | 22.0 |
Six months from now | 11.9 | 10.2 | 35.6 | 40.7 | 23.7 |
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.
- We would have answered that activity will be improved in six months, but the effects from Iran war make that uncertain.
- Borrowers are pushing for lower loan rates while depositors are demanding higher yields, creating sustained pressure on the bank’s net interest margin. This shift in retail deposit behavior requires disciplined pricing, carefully managed exceptions and a deliberate focus on deepening financial relationships with customers—moving beyond the traditional community-bank model of relying solely on personal relationships.
- Our biggest challenge is deposits. The deposit environment remains very competitive.
- The continued uncertainty about the makeup of the Federal Open Market Committee and its independence is a major short-term and long-term concern. Inflation remains a concern as well.
- [We are concerned about] turnover in staffing.
- Bank consolidations have created some opportunities for us to capture some market share from unhappy customers.
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.
Sign up for our email alert to be automatically notified as soon as the latest Banking Conditions Survey is released on the web.