Bank Lending Survey
What Is a Bank Lending Survey?
A bank lending survey is a poll coursed by a country's central banking authority to assist with explaining how its might interpret the overall lending environment. Surveys are commonly flowed quarterly, however might be coursed pretty much regularly relying upon a central bank job in managing lending and the overall state of the economy.
Understanding Bank Lending Surveys
Central banks are regularly given legal orders to control, manage, and guarantee the stability of the banking system, and to guide the economy toward economic growth, full employment, and price stability through monetary policy. To check the adequacy of current policies and guide future policy choices, they utilize different apparatuses to gather data about the wellbeing of the financial system and the economy.
One of these devices is to straightforwardly survey a sample of the banks that they regulate on a continuous basis to get an estimate of lending activity in the overall industry. Normal bank lending surveys incorporate inquiries concerning the number and size of loans made, the interest rates on loans, demand for new loans, default rates, differences among commercial and retail lending, and data on a bank's existing loan and financial portfolios. This data gives central bank officials some knowledge into the market demand and supply of credit, expected risks to the banking system and the economy, and the overall flow of credit from the financial system into the real economy.
Federal Reserve Bank Lending Surveys
In the United States, the Federal Reserve conducts several types of bank lending surveys to support monetary policy choices and management of the financial sector. The fundamental Fed bank lending survey is the Senior Loan Officer Survey, and the Fed additionally directs surveys that attention on ideal subjects of interest and explicitly on bank lending to small businesses.
Senior Loan Officer Survey
The Fed circles its primary bank lending survey, the Senior Loan Officer Opinion Survey on Bank Lending Practices, on a quarterly basis, with the outcomes being utilized to assist with forming the Federal Reserve's overall monetary policy. Synopses of the inquiries and answers can be seen online at the Federal Reserve's official website.
Senior Financial Officer Survey
The Fed directs an infrequent survey of bank financial officers, the Senior Financial Officer Survey, up to four times every year that gets some information about bank liability management, financial services, and the working of financial markets. This survey isn't directed routinely, nor does it have a fixed set of inquiries to gather data over the long run. Rather, it is led dependent upon the situation, with explicitly targeted inquiries to address the Fed's current data needs on ideal points.
Small Business Lending Survey
Likewise, the Kansas City Fed directs a national survey on small business lending, the Small Business Lending Survey in the interest of the Federal Reserve Board. This survey is administered quarterly and covers quantitative data on commercial and industrial loans to small businesses and qualitative data about credit standards, terms, and demand for loans. For this survey small businesses are defined as businesses with $5 million or less in annual revenue.
Features
- Bank lending surveys are a common device employed by central banks to gather data about credit and financial markets to illuminate their policy choices.
- These surveys can gather an extensive variety of quantitative and qualitative data about lending activity, financial market working, and the flow of credit from the financial sector to the real economy.
- The U.S. Federal Reserve directs several bank lending surveys, which cover general lending, opportune subjects of interest, and small business lending.
