Banking Conditions Survey

Special Questions

August 2024

For this survey, respondents were asked supplemental questions about outlook concerns and commercial real estate lending. Data were collected August 6-14, and 74 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	Aug. '24
	Total (percent)	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	49.3	16.4	13.9	19.7
Net interest margin	46.8	54.8	42.6	58.2	42.4	44.9	46.6	19.2	19.4	8.5
Financial/economic uncertainty	46.8	43.5	33.8	38.8	31.8	36.2	43.8	20.5	12.5	11.3
Regulatory burden	35.5	29.0	42.6	31.3	51.5	43.5	37.0	16.4	12.5	8.5
Cybersecurity	22.6	19.4	23.5	26.9	27.3	30.4	26.0	6.8	8.3	11.3
Loan demand	19.4	12.9	25.0	17.9	13.6	13.0	24.7	6.8	6.9	11.3
Overall profitability	17.7	16.1	19.1	20.9	22.7	26.1	15.1	1.4	8.3	5.6
Noncurrent loans	4.8	11.3	11.8	11.9	13.6	11.6	13.7	2.7	5.6	5.6
Difficulty hiring and/or retaining employees	11.3	14.5	11.8	6.0	15.2	8.7	11.0	1.4	0.0	9.9
Competition for loans	8.1	3.2	11.8	9.0	12.1	13.0	9.6	1.4	5.6	2.8
Commercial real estate risks	6.5	12.9	10.3	3.0	9.1	7.2	6.8	2.7	2.8	1.4
Unrealized losses on securities portfolio	14.5	16.1	7.4	14.9	4.5	8.7	2.7	1.4	1.4	0.0
Other	1.6	3.2	1.5	1.5	0.0	2.9	9.6	2.7	2.8	4.2

NOTE: 73 responses.

1a. What are the top three items that are driving the regulatory burden concern? Please rank in order of importance.

	Aug. '24
	Total (percent)	Rank 1 (percent)	Rank 2 (percent)	Rank 3 (percent)
Implementation of Section 1071 of Dodd-Frank	85.2	48.1	25.9	11.1
Regulatory uncertainty	66.7	37.0	11.1	18.5
Proposed changes to the Community Reinvestment Act	48.1	0.0	22.2	25.9
Proposed limitations to overdraft, NSF, and late fees	33.3	0.0	25.9	7.4
Bank Secrecy Act compliance	25.9	3.7	11.1	11.1
Liquidity requirements	14.8	7.4	0.0	7.4
Capital requirements	7.4	0.0	0.0	7.4
Existing requirements for the Community Reinvestment Act	3.7	3.7	0.0	0.0
Existing limitations to overdraft, NSF, and late fees	0.0	0.0	0.0	0.0
Other	14.8	0.0	3.7	11.1

NOTE: 27 responses. This question was posed only to those who selected regulatory burden as a top three outlook concern.

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	16.4	34.3	41.8	7.5	0.0
Industrial	23.5	33.8	39.7	2.9	0.0
Retail	10.6	22.7	54.5	12.1	0.0
Multifamily	19.7	25.8	34.8	19.7	0.0
Office	14.9	17.9	26.9	28.4	11.9
Hotels/lodging	20.9	26.9	34.3	14.9	3.0
Other	46.2	15.4	38.5	0.0	0.0

NOTES: 68 responses. This question was also posed in May ‘23, Aug. ‘23 , Nov. ‘23, Feb. ‘24 and May ‘24.

Questions regarding the Banking Conditions Survey can be addressed to Mariam Yousuf at mariam.yousuf@dal.frb.org.