Banking Conditions Survey
Special Questions
Special Questions
May 2024
For this survey, respondents were asked supplemental questions about outlook concerns and commercial real estate lending. Data were collected April 30-May 8, and 69 bankers responded to the survey.
1. What are the top three concerns around your institution’s outlook over the next six months, if any? Please rank in order of importance.
| May '23 | Jun. '23 | Aug. '23 | Nov. '23 | Feb. '24 | May '24 | ||||
| Total (percent) |
Total (percent) |
Total (percent) |
Total (percent) |
Total (percent) |
Total (percent) |
Rank 1 (percent) |
Rank 2 (percent) |
Rank 3 (percent) |
|
| Liquidity/deposit volume | 61.3 | 54.8 | 57.4 | 56.7 | 56.1 | 50.7 | 20.3 | 18.8 | 11.9 |
| Net interest margin | 46.8 | 54.8 | 42.6 | 58.2 | 42.4 | 44.9 | 20.3 | 11.6 | 13.4 |
| Regulatory burden | 35.5 | 29.0 | 42.6 | 31.3 | 51.5 | 43.5 | 15.9 | 10.1 | 17.9 |
| Financial/economic uncertainty | 46.8 | 43.5 | 33.8 | 38.8 | 31.8 | 36.2 | 13.0 | 15.9 | 7.5 |
| Cybersecurity | 22.6 | 19.4 | 23.5 | 26.9 | 27.3 | 30.4 | 8.7 | 5.8 | 16.4 |
| Overall profitability | 17.7 | 16.1 | 19.1 | 20.9 | 22.7 | 26.1 | 7.2 | 11.6 | 7.5 |
| Loan demand | 19.4 | 12.9 | 25.0 | 17.9 | 13.6 | 13.0 | 5.8 | 7.2 | 0.0 |
| Competition for loans | 8.1 | 3.2 | 11.8 | 9.0 | 12.1 | 13.0 | 2.9 | 2.9 | 7.5 |
| Noncurrent loans | 4.8 | 11.3 | 11.8 | 11.9 | 13.6 | 11.6 | 2.9 | 4.3 | 4.5 |
| Unrealized losses on securities portfolio | 14.5 | 16.1 | 7.4 | 14.9 | 4.5 | 8.7 | 1.4 | 2.9 | 4.5 |
| Difficulty hiring and/or retaining employees | 11.3 | 14.5 | 11.8 | 6.0 | 15.2 | 8.7 | 0.0 | 1.4 | 7.5 |
| Commercial real estate risks | 6.5 | 12.9 | 10.3 | 3.0 | 9.1 | 7.2 | 1.4 | 4.3 | 1.5 |
| Other | 1.6 | 3.2 | 1.5 | 1.5 | 0.0 | 2.9 | 0.0 | 2.9 | 0.0 |
NOTE: 69 responses.
2. How concerned are you about the performance of the following categories in your commercial real estate (CRE) loan portfolio, on a scale of 1 (not concerned at all) to 5 (extremely concerned)?
| 1 (not concerned at all) |
2 |
3 |
4 |
5 (extremely concerned) |
|
| Percent of responses | |||||
| Construction and land development | 20.3 | 43.8 | 25.0 | 9.4 | 1.6 |
| Industrial | 25.0 | 45.3 | 21.9 | 7.8 | 0.0 |
| Retail | 18.8 | 39.1 | 28.1 | 14.1 | 0.0 |
| Multifamily | 23.4 | 46.9 | 21.9 | 6.3 | 1.6 |
| Office | 20.3 | 21.9 | 26.6 | 21.9 | 9.4 |
| Hotels/lodging | 26.6 | 34.4 | 29.7 | 7.8 | 1.6 |
| Other | 40.0 | 10.0 | 40.0 | 10.0 | 0.0 |
NOTES: 64 responses. This question was also posed in May ‘23, Aug. ‘23 , Nov. ‘23, and Feb. ‘24.
Questions regarding the Banking Conditions Survey can be addressed to Mariam Yousuf at mariam.yousuf@dal.frb.org.
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