Banking Conditions Survey

Special Questions

February 2021

For this survey, respondents were asked supplemental questions on the impacts of the COVID-19 pandemic. Data were collected Feb. 2–10, and 72 bankers responded to the survey.

1. Did you issue loans last year through the initial rounds of the Paycheck Protection Program (PPP)?

	Feb. '21 (percent)
Yes	81.9
No	18.1

NOTES: 72 responses.

1a. Of the PPP loans issued by your institution in 2020, what share has been forgiven?

Percent	Feb. '21 (percent)
None	1.7
1–25	27.1
26–50	30.5
51–75	20.3
More than 75	20.3

NOTES: 59 responses. This question was only posed to those who issued PPP loans last year.

2. Are you issuing, or do you plan to issue, loans through the current round of the PPP?

	Feb. '21 (percent)
Yes	80.6
No	15.3
Don't know/haven't decided yet	4.2

NOTE: 72 responses.

2a. How do you expect the number of PPP loans you issue under the current round to compare with the number of PPP loans you issued last year?

	Feb. '21 (percent)
Substantially lower	63.2
Slightly lower	28.1
About the same	3.5
Slightly higher	3.5
Substantially higher	1.8

NOTES: 57 responses. This question was only posed to those who issued PPP loans last year and are issuing loans through the current round of PPP.

2b. How do you expect the total value of PPP loans you issue under the current round to compare to the total value of PPP loans you issued last year?

	Feb. '21 (percent)
Substantially lower	72.4
Slightly lower	19.0
About the same	5.2
Slightly higher	1.7
Substantially higher	1.7

NOTES: 58 responses. This question was only posed to those who issued PPP loans last year and are issuing loans through the current round of PPP.

2c. Are you currently using (or do you plan to use) the Fed’s PPP Liquidity Facility?

	Feb. '21 (percent)
Yes	5.2
No	82.8
Don't know/haven't decided yet	12.1

NOTES: 58 responses. This question was only posed to those who are issuing loans through the current round of PPP.

On Nov. 30, 2020, the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp. collectively issued a statement to encourage banks to transition away from the U.S. dollar Libor (London interbank offered rate) as their reference rate by Dec. 31, 2021.

3. Does your institution have exposure to Libor?

	Feb. '21 (percent)
Yes, only from our own loans, operations and models	10.0
Yes, only from third-party service providers and/or vendors utilizing Libor	5.7
Yes, both from our own loans, operations and models and from third-party service providers and/or vendors utilizing Libor	5.7
No	75.7
Don’t know; plan to assess	1.4
Don’t know; don’t plan to assess	1.4

NOTE: 70 responses.

3a. Does your institution have a formal Libor transition plan?

	Feb. '21 (percent)
Yes, and we’ve started the transition process	53.3
Yes, but we haven’t started the transition process	33.3
No	13.3

NOTES: 15 responses. This question was only posed to those indicating they have exposure to Libor.

3b. What alternative reference rate is your firm planning to use after transitioning away from Libor? Please select all that apply.

	Feb. '21 (percent)
SOFR	73.3
Prime	53.3
Ameribor	13.3
Bank Yield Index	0.0
Other	6.7
We haven’t decided yet	6.7

NOTES: 15 responses. This question was only posed to those indicating they have exposure to Libor.

Special Questions Comments

These comments have been edited for publication.

We only have a handful of Libor-priced loans.
We have limited Libor exposure; it will continue to lessen over the next 12 months related to a small number of investment holdings.
We are getting more inquiries about the second round of PPP loans, but the actual loan application volume

Questions regarding the Banking Conditions Survey can be addressed to Emily Kerr at emily.kerr@dal.frb.org.