"The January 2008 Senior Loan Officer Opinion Survey on Bank Lending Practices

A set of special questions asked banks about their expectations for delinquencies and charge-offs on loans to businesses and households in 2008 under the assumption that economic activity progresses in line with consensus forecasts. On balance, the responses indicate that large majorities of domestic and foreign banks expect a DETERIORATION IN LOAN QUALITY in 2008. Regarding loans to businesses, between about 75 percent and 85 percent of domestic and foreign banks expect a DETERIORATION IN THE QUALITY of their C&I and commercial real estate loan portfolios. About 15 percent of domestic and 20 percent of foreign respondents expect a substantial DETERIORATION IN THE QUALITY of their commercial real estate portfolios...

This document was prepared by David Lucca with the assistance of April Gifford, Division of Monetary Affairs, Board of Governors of the Federal Reserve System."
http://www.federalreserve.gov/boarddocs/snloansurvey/200801/...

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"For example, the Bank Administration Institute, an affiliate of the American Banker’s Association, offers the Loan Review Certificate Program for people who review and approve loans. This program enhances the quality of reviews and improves the early detection of DETERIORATING LOANS, thereby contributing to the safety and soundness of the loan portfolio."
(Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, 2008-09 Edition, Loan Officers)
http://www.bls.gov/oco/ocos018.htm


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"Mon Mar 31, 2008 9:36am BST
London (Reuters) - Troubled bank Northern Rock will reveal additional writedowns when it reports its 2007 results on Monday, as LOAN QUALITIES continue to DETERIORATE, newspapers reported on Sunday."
http://uk.reuters.com/article/businessNews/idUKL303505420080...

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"REUTERS (New York Times)
Published: March 14, 1991

Plagued by a mass of DETERIORATING LOANS, commercial bank profits fell 31 percent in the final quarter of last year to $1.39 billion, the Federal Deposit Insurance Corporation said today. "
http://query.nytimes.com/gst/fullpage.html?res=9D0CEEDB1E3BF...

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"Performance Of U.S. RMBS Alt-A Loans Continues To Deteriorate"
[PDF]
http://www2.standardandpoors.com/portal/site/sp/en/us/page.a...


Could also be "deteriorating performance", "deteriorating standards", depending on your context.