The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
F E D E R A L \ « i » r G. 10 R E S E R V E statistical . ' * . release For inimediate r e l e a s e May 30, 1974 ; - • INTEREST RATES CHARGED ON SELECTED TYPES OF BANK LOANS j ' ' ' ' I Type of Ldan I n t e r e s t r a t e ( p e r c e n t per annum) January March April 1972 1974 1974 Small s h o r t - t e r m n o n l n s t a l m e n t loans t o businesses 1/ Farm p r o d u c t i o n l o a n s (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 operations 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 a u t o m o b i l e s (36 months) Mobile homes (84 months,) Qther 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) , . Credit card plans • 7.31 .60 9.80 7.55 9.55 9.69 7 . 63 9.14 9.30 10.26 10.94 12.57 10.50 10.92 12.82 10.51 11.07 12.81 12.74 17.11 13.04 17.23 13.00 17.25 ' \ Business loans--prime r a t e To sm&ll 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 1/ 5.25 8.30 . 8.75 8.57 10.00, Loans of $10,000 t o $25,000 m a t u r i n g i n one y e a r or l e s s . NOTE: Except f o r t h e prime r a 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 a r e based on a s u r v e y conducted- j o i n t l y by t h e F e d e r a l Reserve System and t h e ' F e d e r a l D e p o s i t I n s u r a n c e C o r p o r a t i o n a t 370 i n s u r e d commercial banks. A l l r a t e s e x c e p t t h e p r i m e r a t e s r e p r e s e n t s i m p l e unweighted a v e r a g e s of t h e "most common" e f f e c t i v e a n n u a l r a t e on l o a n s made d u r i n g the; f i r s t f u l l c a l e n d a t week of t h e month i n esfch l o a n c a t e g o r y . The "most"common" r a t e i s d e f i n e d as t h e r a t e charged on t h e l a r g e s t d o l l a r volume of l o a n s i n the, p a r t i c u l a r c a t e g o r y d u r i n g t h e week covered i n t h e s u r v e y . Consumer i n s t a l m e n t l o a n r a t e s a r e r e p o r t e d 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 t h e F e d e r a l Reserve B o a r d ' s R e g u l a t i o n Z. (ovei-) The prime r a t e on l o a n s t o s m a l l b u s i n e s s e s , as p r o v i d e d f o r i n t h e d u a l prime r a t e s t r u c t u r e " e s t a b l i s h e d by t h e Committee on I n t e r e s t and D i v i d e n d s i n t h e i n t e r e s t r a t e c r i t e r i a f o r commercial b a n k s , i s s u e d A p r i l 16, 1973, i s . t h e b e s t r a t e c h a r g e d by a bank t o i t s most c r e d i t - w o r t h y l o c a l c u s t o m e r s . For t h e Committee' s,„ p u r p o s e s , a s m a l l b u s i n e s s i s d e f i n e d as any d o m e s t i c commercial., i n d u s t r i a l , o r a g r i c u l t u r a l b o r r o w e r whose t o t a l b o r r o w i n g s o u t s t a n d i n g a t any one t i m e over t h e p r e c e d i n g 12 months ( e x c l u s i v e oaf l o n g - t e r m r e a l e s t a t e m o r t g a g e d e b t ) d i d n o t exceed $350,000 and whose a s s e t s do n o t exceed $1 m i l l i o n . The f i g u r e shown i s t h e s i m p l e u n w e i g h t e d a v e r a g e of t h e r a t e s i n e f f e c t on t h e l a s t b u s i n e s s day of t h e : f i r s t f u l l c a l e n d a r week of t h e month; t h e r a n g e : o f v a r i a t i o n of t h e s e r a t e s i s c o n s i d e r a b l e . The l a r g e b u s i n e s s prime r a t e i s t h e r a t e most commonly q u o t e d by l a r g e > - b a n k s on t h a t d a t e . S i n c e t h e prime r a t e i n f o r m a t i o n h a s n o t b e e n c o n v e r t e d t o an e f f e c t i v e r a t e b a s i s , t h e r a t e s shown a r e n o t d i r e c t l y c o m p a r a b l e t o t h e o t h e r r a t e s shown on t h i s r e l e a s e .
@FedFRASER