Fed Sr. Loan Officer Survey: Setting the Stage for Accelerating C&I Growth

Research evidence excerpt

Fed Sr. Loan Officer Survey: Setting the Stage for Accelerating C&I Growth

Update

August 3, 2026 10:20 PM GMT

Morgan Stanley & Co. LLCMBanks & Consumer Finance | North America Manan Gosalia

Equity Analyst

Fed Sr. Loan Officer Survey: Manan.Gosalia@morganstanley.comJeffrey Adelson, CFA +1 212 761-4092

Jeff.Adelson@morganstanley.com +1 212 761-1761

Setting the Stage for Ryan Kenny, CFA

Ryan.Kenny@morganstanley.com +1 212 761-1664

Accelerating C&I Growth Brian Wilczynski, CFA

Our quick takeaways on what the survey means for the forward look on US Brian.Wilczynski@morganstanley.com +1 212 761-1084

Connell J Schmitz

banks: Research Associate

Connell.Schmitz@morganstanley.com +1 212 761-6252

• (+) For C&I, easing standards vs historical levels, and strong demand support Alexander L Ward

our thesis that C&I loan growth should continue to accelerate. We expect Research Associate

Alex.Ward@morganstanley.com +1 212 296-3096

this will drive strength in loan growth through the back half of 2026 and Ben Bayanfar

beyond. Research Associate

Ben.Bayanfar@morganstanley.com +1 212 761-0649

° (+) Relative to historical levels for C&I loans, banks reported that the Joseph Leeman

current levels of standards were easier than the midpoints of their Research Associate

historical ranges for loans to investment-grade / middle market firms Joseph.Leeman@morganstanley.com +1 212 761-4381

° (+) Although not part of the SLOS, supporting our view was today's ISM Large Cap Banks

Manufacturing PMI for the U.S., which rose to 55.6 in July, the North America

Industry View Attractive

strongest expansion in factory activity since May 2022.

° (-) For banks that loosened C&I standards the #1 reason cited was

increased competition. We believe increasing competition could