Banking Conditions Survey

Special questions

Special Questions

May 2026

For this survey, respondents were asked supplemental questions supplemental questions on outlook concerns and loan performance. Data were collected May 5–13, and 58 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.

	Nov.'24	Feb. '25	May '25	Aug. '25	Nov. '25	Feb.'26	May '26
	Total (percent)	Total (percent)	Total (percent)	Total (percent)	Total (percent)	Total (percent)	Total (percent)	Rank 1 (percent)	Rank 2 (percent)	Rank 3 (percent)
	Total	Total	Total	Total	Total	Total	Total	Rank 1	Rank 2	Rank 3
Fraud					29.9	32.2	55.2	17.2	25.9	12.5
Financial/economic uncertainty	38.8	27.5	64.2	57.1	44.8	35.6	46.6	15.5	10.3	21.4
Liquidity/deposit volume	28.4	42.0	29.9	34.3	29.9	28.8	39.7	22.4	8.6	8.9
Cybersecurity	28.4	39.1	31.3	34.3	29.9	28.8	39.7	13.8	13.8	12.5
Loan demand	20.9	23.2	29.9	25.7	25.4	32.2	20.7	12.1	6.9	1.8
Net interest margin	49.3	44.9	22.4	28.6	34.3	25.4	19.0	5.2	10.3	3.6
Difficulty hiring and/or retaining employees	17.9	15.9	9.0	20.0	16.4	22.0	19.0	0.0	10.3	8.9
Competition for loans	14.9	11.6	23.9	24.3	17.9	27.1	12.1	5.2	1.7	5.4
Overall profitability	23.9	27.5	19.4	15.7	14.9	15.3	12.1	1.7	1.7	8.9
Regulatory burden	53.7	37.7	25.4	22.9	17.9	15.3	10.3	0.0	5.2	5.4
Noncurrent loans	11.9	14.5	19.4	7.1	14.9	10.2	6.9	3.4	1.7	1.8
Stablecoins/cryptocurrency				11.4	9.0	13.6	6.9	1.7	1.7	3.6
Commercial real estate risks	6.0	7.2	6.0	11.4	7.5	5.1	3.4	1.7	1.7	0.0
Other	0.0	1.4	11.9	2.9	6.0	6.8	3.4	0.0	0.0	3.6
Unrealized losses on securities portfolio	4.5	5.8	6.0	4.3	1.5	1.7	1.7	0.0	0.0	1.8

NOTES: 58 responses.

2. 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	15.4	40.4	32.7	11.5	0.0
Commercial real estate	11.5	46.2	26.9	15.4	0.0
Residential real estate	27.3	30.9	30.9	7.3	3.6
Consumer	14.3	33.9	28.6	21.4	1.8
Nondepository financial institutions	25.6	20.5	25.6	15.4	12.8

NOTES: 56 responses. This question was most recently posed in Feb. ’26.

3. 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	10.6	36.2	42.6	10.6	0.0
Industrial	15.4	46.2	30.8	7.7	0.0
Retail	12.5	41.7	29.2	12.5	4.2
Multifamily	13.6	40.9	31.8	13.6	0.0
Office	12.8	25.5	34.0	27.7	0.0
Hotels/lodging	13.0	34.8	34.8	17.4	0.0
Other	0.0	50.0	25.0	25.0	0.0

NOTES: 48 responses. This question was most recently posed in Feb. ’25. This question was only posed to those answering 1–5 to question 2 for CRE loans.

4. How concerned are you about the performance of the following categories in your nondepository financial institution (NDFI) 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
Mortgage credit intermediarie	16.7	25.0	37.5	20.8	0.0
Business credit intermediaries	16.7	20.8	41.7	20.8	0.0
Private equity funds	20.0	8.0	48.0	20.0	4.0
Consumer credit intermediaries	16.7	16.7	50.0	16.7	0.0
Other	0.0	50.0	50.0	0.0	0.0

NOTES: 25 responses. This question was only posed to those answering 1–5 to question 2 for NDFI loans.

Special Questions Comments

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

We have experienced a recent uptick in problem assets related to land development, hotel and agriculture.

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