Banking Conditions Survey

Special Questions

September 2023

For this survey, respondents were asked supplemental questions about deposits, credit standards, loan downgrades and loan pricing. Data were collected September 19-27, and 65 bankers responded to the survey.

1. Over the past six weeks, how has your volume of core deposits changed?

	Jun. '23 (percent)	Aug. '23 (percent)	Sep. '23 (percent)
Increased slightly	26.2	31.3	27.7
Increased significantly	0.0	3.0	4.6
No change	23.0	20.9	20.0
Decreased slightly	45.9	41.8	41.5
Decreased significantly	4.9	3.0	6.2

NOTE: 65 responses.

2. Over the next six weeks, how do you expect your volume of core deposits to change?

	Jun. '23 (percent)	Aug. '23 (percent)	Sep. '23 (percent)
Increased slightly	30.6	35.8	41.5
Increased significantly	1.6	3.0	1.5
No change	33.9	34.3	30.8
Decreased slightly	33.9	26.9	23.1
Decreased significantly	0.0	0.0	3.1

NOTE: 65 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	0.0	51.6	40.3	8.1
Commercial real estate	0.0	0.0	37.1	50.0	12.9
Residential real estate	0.0	0.0	67.7	25.8	6.5
Consumer	0.0	1.5	60.0	33.8	4.6

NOTES: 65 responses. Responses for this question from August 2023 can be found here.

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	0.0	36.1	44.3	19.7
Industrial	0.0	0.0	45.9	47.5	6.6
Retail	0.0	0.0	42.6	45.9	11.5
Multifamily	0.0	0.0	60.0	33.8	4.6
Office	0.0	0.0	32.8	31.1	36.1
Hotels/lodging	0.0	0.0	33.3	41.7	25.0
Other	0.0	0.0	56.4	36.4	7.3

NOTES: 61 responses.

Consider the ratings of your commercial and industrial loans.

5. Approximately what percent of loans have been downgraded over the past three months?

	Sep. '23 (percent)
Downgraded loans	0.4

5b. Approximately what percent of loans do you expect to be downgraded over the next three months?

	Sep. '23 (percent)
Expected downgrades	0.7

NOTES: 58 responses. Averages are calculated as trimmed means with the lowest and highest 5 percent of responses omitted.

Consider the ratings of your commercial real estate loans.

6. Approximately what percent of loans have been downgraded over the past three months?

	Sep. '23 (percent)
Downgraded loans	0.6

6b. Approximately what percent of loans do you expect to be downgraded over the next three months?

	Sep. '23 (percent)
Expected downgrades	1.0

NOTES: 57 responses. Averages are calculated as trimmed means with the lowest and highest 5 percent of responses omitted.

7. Over the next three months, which category of lending do you expect to experience the largest increase in loan pricing, if any?

	Sep. '23 (percent)
Commercial real estate loans	54.0
Commercial and industrial loans	26.0
Consumer loans	14.0
Residential real estate loans	6.0

NOTES: 50 responses. These calculations exclude respondents that answered “Not applicable; we do not expect to increase loan pricing,” which represented 20.6 percent of responses.

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