Banking Conditions Survey

Special Questions

November 2025

For this survey, respondents were asked supplemental questions about outlook concerns, stablecoins-tokenized deposits and loan performance. Data were collected October 28–November 5, and 67 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 '24	Aug.'24	Nov.'24	Feb. '25	May '25	Aug. '25	Nov. '25
	Total (percent)	Total (percent)	Total (percent)	Total (percent)	Total (percent)	Total (percent)	Total (percent)	Rank 1 (percent)	Rank 2 (percent)	Rank 3 (percent)
Financial/economic uncertainty	36.2	43.8	38.8	27.5	64.2	57.1	44.8	19.4	14.9	10.4
Net interest margin	44.9	46.6	49.3	44.9	22.4	28.6	34.3	11.9	13.4	9.0
Liquidity/deposit volume	50.7	49.3	28.4	42.0	29.9	34.3	29.9	13.4	6.0	10.4
Cybersecurity	30.4	26.0	28.4	39.1	31.3	34.3	29.9	9.0	13.4	7.5
Fraud	n/a	n/a	n/a	n/a	n/a	n/a	29.9	9.0	13.4	7.5
Loan demand	13.0	24.7	20.9	23.2	29.9	25.7	25.4	9.0	10.4	6.0
Regulatory burden	43.5	37.0	53.7	37.7	25.4	22.9	17.9	4.5	7.5	6.0
Competition for loans	13.0	9.6	14.9	11.6	23.9	24.3	17.9	4.5	4.5	9.0
Difficulty hiring and/or retaining employees	8.7	11.0	17.9	15.9	9.0	20.0	16.4	4.5	0.0	11.9
Overall profitability	26.1	15.1	23.9	27.5	19.4	15.7	14.9	4.5	4.5	6.0
Noncurrent loans	11.6	13.7	11.9	14.5	19.4	7.1	14.9	3.0	7.5	4.5
Stablecoins/cryptocurrency	n/a	n/a	n/a	n/a	n/a	11.4	9.0	4.5	1.5	3.0
Commercial real estate risks	7.2	6.8	6.0	7.2	6.0	11.4	7.5	3.0	1.5	3.0
Other	2.9	9.6	0.0	1.4	11.9	2.9	6.0	0.0	1.5	4.5
Unrealized losses on securities portfolio	8.7	2.7	4.5	5.8	6.0	4.3	1.5	0.0	0.0	1.5

NOTES: 67 responses.

2. Is your bank planning to participate in any stablecoin products (excluding tokenized deposits)?

	Nov. '25' (percent)
Yes	4.5
No	49.3
Undecided	46.3

NOTES: 67 responses.

2a. Is your bank planning to participate in any stablecoin products (excluding tokenized deposits)?

We are studying [the possibilities].
Not immediately, but eventually community banks will need a strategy for stablecoins, preferably tokenized deposits, if they want to remain competitive and relevant.
Due to the complexities and risk surrounding stablecoin products, we are currently not participating.
This is dependent on the regulation and software needed.
[We are] researching at this time.
I am more interested in tokenized deposits than stablecoin. We are evaluating partnerships now and will probably use a third-party as our provider.
We do not understand the risk for one and secondly, we do not currently have a demand for stablecoins.
We have not taken a position either way, nor have we discussed it in depth. My guess is that we will not participate in the near future in any capacity.
We are attempting to learn as much as possible about this subject.
Yes, we have been building a solution around stablecoins and tokenized deposits for some time.

3. Is your bank planning to issue tokenized deposits?

	Nov. '25' (percent)
Yes	4.6
No	55.4
Undecided	40.0

NOTES: 65 responses.

3a. Is your bank planning to issue tokenized deposits?

Again, not immediately, but management understands the need to prepare a strategy and work with vendors as we anticipate the competitive need access to tokenized deposit rails in the future.
This is dependent on the regulation and software needed.
[We are] researching at this time.
We do not understand the risk and do not have demand for the product.
If we did, it would likely be through a partnership with a third-party provider specializing in this area, no immediate plans to do so.
We are located in highrisk Bank Secrecy Act (BSA) counties that border Mexico. Until we are more comfortable with BSA risks, we will not participate.
At some point. Not in the near future.
Not in the near future.
Yes, we have been building a solution around stablecoins and tokenized deposits for some time.

4. How concerned are you about the performance of the following categories in your 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
Commercial and industrial	14.5	41.9	37.1	6.5	0.0
Commercial real estate	9.8	47.5	32.8	8.2	1.6
Residential real estate	17.2	46.9	28.1	6.3	1.6
Consumer	9.2	41.5	35.4	13.8	0.0

NOTE: 65 responses. This question was most recently posed in Aug. ‘25.

5. 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	12.9	45.2	32.3	9.7	0.0
Industrial	21.0	45.2	29.0	4.8	0.0
Retail	14.5	43.5	29.0	11.3	1.6
Multifamily	14.5	41.9	33.9	9.7	0.0
Office	17.7	25.8	38.7	17.7	0.0
Hotels/lodging	21.3	27.9	41.0	8.2	1.6
Other	22.2	38.9	33.3	0.0	5.6

NOTES: 62 responses. This question was most recently posed in Aug. ‘25.

Special Questions Comments

Survey participants are given the opportunity to submit comments. Some comments have been edited for grammar and clarity.

We are seeing more restaurants struggling or shutting down.

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