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•i FEDERAL RESERVE statistical release fttintsy. For immediate r e l e a s e A p r i l 16, 1974 G. 10 N INTEREST RATES CHARGED O SELECTED TYPES OF BANK LOANS I n t e r e s t r a t e (per c e n t per annum) January February . March 1972 1974 1974 . Type of Loan Small s h o r t - t e r m n o n i n s t a l m e n t loans t o b u s i n e s s e s 1/ 7.31 , 9.82 9.60. 7.55 9.65 9.55 17*63 9.26 9.14 10.26 10.94 12.57 10.52 11.25 12.82 10.50 10.92 f 12.82 12.74 17.11 13.02 ' 17.24 ! 13.04 ! 17.23 ; n.a. 5.25 8.38 9.50 ?-75 Farm production, loans (one y e a r of l e s s m a t u r i t y ) Feeder c a t t l e o p e r a t i o n s ' Other farm p r o d u c t i o n o p e r a t i n g expenses Consumer i n s t a l m e n t c r e d i t f o r : New autiomobiles (36 months) Mobile homes (84 months) Other consumer goods (24 months) Other p e r s o n a l e x p e n d i t u r e s (12 months) C r e d i t card plans B u s i n e s s loans—prime r a t e To s m a l l b u s i n e s s e s To l a r g e b u s i n e s s e s \J ' 1 8.30 Loans of $ 1 0 , 0 0 0 t o $25,0^)0 maturing i n one year or l e s s . NOTE: Except f o r t h e prime r # t e on l o a n s t o l a r g e b u s i n e s s e s , t h e i n t e r e s t r a t e s ' shown on t h i s r e l e a s e aire based on a survey'conducted j o i n t l y by the Federal Reserve Systenv and t h e Federal D e p o s i t Insurance Corporation a t i 3 7 0 insured commercial banks. A l l r a t e s except t h e prime r a t e s r e p r e s e n t ; s i m p l e unweighted averages of the "most common" e f f e c t i v e annual r a t e on l o a n s (.made during t h e f i r s t f u l l c a l e n d a r week of the month i n each loan c a t e g o r y . I The "most common" r a t e i s d e f i n e d as the r a t e charged on the l a r g e s t d o l l a r volume of loans i n , t h e p a r t i c u l a r c a t e g o r y during the week covered i n the ' survey. Consumer i n s t a l m e n t ; l o a n rateg are reported on a T r u t h - i n - L e n d i n g b a s i s as s p e c i f i e d i n the Federal Reserve Board's R e g u l a t i o n Z. (over) r . • The prime r a t e on l o a n s t o small b u s i n e s s e s , as provided f o r i n m e d u a l prime r^te s t r u c t u r e e s t a b l i s h e d by 'the Committee on I n t e r e s t and D i v i d e n d s i n the i n t e r e s t r a t e c r i t e r i a f o r commercial banks, issued April 16, 1973, i s the b e s t , r a t e charged by a bank t o . i t s most credit-worthy, l o c a l customers. For the C o m m i t t e e ' s purposes, a small b u s i n e s s i s d e f i n e d as any domestic commercial, i n d u s t r i a l , -or a g r i c u l t u r a l borrower whose t o t a l borrowings o u t s t a n d i n g at any one time over the preceding 12 months ( e x c l u s i v e of long-term r e a l e s t a t e mortgage d e b t ) did not exceed $35.0,000 and whose a s s e t s ? do n o t exceed $1 ijni-lliom The f i g u r e - shown i s t h e simple unweighted average of t h e r a t e s in e f f e c t on t h e l a s t b u s i n e s s day of the f i r s t f u l l calendar week of the month; the range of v a r i a t i o n of t h e s e r a t e s i s considerable. The l a r g e b u s i n e s s prime, r a t e i s the r a t e most commonly quoted by large, banks on that d a t e . Since the prime r a t e i n f o r m a t i o n has not been c o n v e r t e d a n e f f e c t i v e r a t e b a s i s , the r a t e s shown are not d i r e c t l y comparable t o t h e other r a t e s shown on t h i s r e l e a s e .
