Full text of E.2 Survey of Terms of Business Lending : December 28, 1983

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FEDERAL RESERVE statistical release

m
'f*4L9S.&'

For Immediate release
DECEMBER 28, 1983

SURVEY OF TERMS OF BANK LENDING MADE DURING NOVEMBER 7 - 1 1 , 1 9 8 3
Table 1
SHORT-TERM COMMERCIAL AND INDUSTRIAL LOANS (OTHER THAN CONSTRUCTION AND LAND DEVELOPMENT)
Size claw of loans (thousands)
all sizes

$1-24

$25-48

.

$50-96

$100-499

$500-999

$1000 and over

ALL BANKS1
Amount of loans (thousands)
Number of loans
Weighted average maturity (months) 2
Loans with fixed rates
Loans with floating rates

$26,906,178
130,51*
1.3
.7
2.5

$679,407
91,718
3.6
3.2
4.5

$460,408
13,836
3.7
3.6
3.8

$554,091
8,922
4.0
3.9
4.1

$2,042,372
11,597
4.9
3.8
5.6

$726,993
1,077
3.1
1.5
4.8

$22,442,908
3,364
.8
.4
1.7

Weighted average Interest rate (%)3
Standard error4
Interquartile range 5
Loans with fixed rates
Loans with floating rates

10.95
.21
10.27-11.18
10.80
11.20

13.91
.24
12.68-14.85
14.26
13.28

13.78
45
12.55-14.56
13.79
13.78

13.23
.26
12.36-13.80
13.70
12.93

12.34
.33
11.46-12.96
12.63
12.21

11.82
.18
11.32-12.55
11.24
12. 14

10.59
.16
10.24-10.75
10.54
10.68

36.7
68.4
12.5
17.4

35.7
31.3
15.7
2.1

60.0
30.5
27.1
.0

61.3
37.2
26.7
.2

69.2
43.8
22.7
.5

64.8
65.2
38.5
3.3

31.8
73.4
10.0
20.7

48 LARGE BANKS 1
Amount of loans (thousands)
Number of loans
Weighted average maturity (months) 2
Loans with fixed rates
Loans with floating rates

$19,429,314
12,222
.7
.4
1.3

$45,434
4,371
3.8
3.1
4.3

$54,117
1,626
4.2
3.4
4.4

$89,125
1,385
3.8
2.3
4.2

$392,949
2,007
4. 1
2.4
4.6

$318,672
474
3.4

518,529,018
2,358
.6

4.9

1.0

Weighted average interest rate (%)3
Standard error 4
Interquartile ranges
Loans with fixed rates
Loans with floating rates

10.62
.04
10.24-10.76
10.56
10.76

13.39
.03
12.64-13.94
13.62
13.26

12.93
.03
12. 19-13.80
13.04
12.90

12.85
.05
12.13-13.50
12.78
12.87

12.42
.04
11.57-13.24
12. 0B
12.51

11.77
.08
1 1 . 4 6 - 1 2 . 25
11.20
12.02

10.54
.07
10.24-10.74
10.54
10.55

77.2
57.0
33.7
.0

81.2
63.7
38.3
.0

80.4
68. 1
36.3
.4

69.3
75.8
40.6
1.5

29.4
73.9
7. 1
20.6

Percentage of amount of loans:
With floating rates
Made under commitment
With no stated maturity
With one-day maturity

Percentage of amount of loans:
With floating rates
Made under commitment
With no stated maturity
With one-day maturity
OTHER BANKS
Amount of loans (thousands)
Number of loans
Weighted average maturity (months) 2
Loans with fixed rates
Loans with floating rates
Weighted average interest rate (%) 3
Standard error 4
Interquartile range 5
Loans with fixed rates
Loans with floating rates
Percentage of amount of loans:
With floating rate
Made under commitment
With no stated maturity
With one-day maturity
See last page for footnotes.




31.5
73.7
8.5
19.7

65.3
56.7
27.4
. 1

$7,476,864
118,292
3. 1
1.8
4.9

$633,973
87,347
3.6
3.2
4.6

$406,291
12,210
3.7
3.6
3.7

$464,966
7,538
4.0
4.0
4.0

$1,649,423
9,590
5. 1
3.9
5.9

$408,320
603
3.0
1.4
4.7

$3,913,891
1,005
2.1
.6
4.5

11.79
.20
10.40-12.68
11.66
11.92

13.95
.23
12.68-14.85
14.29
13.28

13.90
.44
12.62-14.56
13.84
13.94

13. 30
.24
12.40-13.80
13. 78
12.94

12.32
.33
11.37-12.75
12.71
12.12

11.86
. 15
11.21-12.68
11.26
12.25

10.81
.13
10. 18-11.46
10.57
11.12

50. 1
54.8
23. 1
1 1.6

33.6
29.5
14.9
2.3

57.7
26.9
26.2
.0

57.5
32.2
24.5
.3

66.5
38.0
19.5
.5

61.2
56.9
36.9
4.6

43. 1
71.3
24.0
21.0

Table 2
LONG-TERM COMMERCIAL AND INDUSTRIAL LOANS (OTHER THAN CONSTRUCTION AND LAND DEVELOPMENT)
Six* class of loans (thousands)
$100-499

StflOOand over

1

ALL BANKS
Amount of loans (thousands)
Number of loans
Weighted average maturity (months) 2
Loans with fixed rates
Loans with floating rates

$2,83*,*73
19,150
50.8
50.7
50.8

$367,008
16,303
39.0
*2.0
36.3

$426,052
1,851
*0.7
*5.9
36.6

Weighted average interest rate (%)3
Standard error*
Interquartile range 5
l o a n s with fixed rates
Loans with floating rates

12.9*

11.38-12.68
15.19
12.13

1*.03
.33
12.68-11.65
1 * . 95
13.21

12.*0-28.*2
24.52

.42
11.46-12.68
11.51

73.6
59. 1

52.9
*2.7

55.6
*5.3

85.8
66.6

64.8

$1,**3.160
*,159
53.6
57.5
52.3

$94,**9
3,092
22.0

$137,491
712
31.3
51.4
29.3

$89,365
127
49.9
38.3
52.5

51,121,856
228
59.3
58.9
59.4

11.58

12.86
.02

12.37
.03
11.73-12.68
11.69
12.44

12.24

11.33

11.46-12.68
12.30
12.23

10.78-12.01
10.57

Percentage of amount of loans:
With floating rates
Made under commitment
48 LARGE BANKS 1
Amount of loans (thousands)
Number of loans
Weighted average maturity (months) 2
Loans with fixed rates
Loans with floating rates
Weighted average interest rate (%)3
Standard error*
Interquartile ranges
Loans with fixed rates
Loans with floating rates
Percentage of amount of loans:
With floating rates
Made under commitment
OTHER BANKS
Amount of loans (thousands)
Number of loans
Weighted average maturity (months) 2
Loans with fixed rates
Loans with floating rates
Weighted average interest rate (%)3
Standard error*
Interquartile ranged
Loans with fixed rates
Loans with floating rates
Percentage of amount of to*ns:
With floating rates
Made under commitment

See last page for notes to tables.




1.*8

.06
10.81-12.28
10.76
11.85

*6.6
19.9

12.*0—12.96
13.89
12.77

17.89
3.29

12.60

$168,157
246
48.7
55.0
47.6

12.01

12.12

.20

$1,873,256
750
55.5
57. 1
55.2

11.68

.43
10.92-12.40

10.68
11.93

80.6

.11

11.62

75.*
91. 1

92.1

90.7
90.9

82.4

82.1

71.6
92.2

$1,391,312
14,991
*7.8

$272,560
13,211
*4.9

$288,561
1,139
45.2
45.5
44.7

$78,792
119
47.2
89.3
42.6

$751,400
522
49.9
*3.9
50.3

«*.6
*9.0

86.1

*1.8
*9.7

11.80

12.22

1* . 35
1.*7
12.*0-13.88
19.17
12-*5

1*.**

.32
13. 5 0 - 1 5 . 5 0
15.00
13.57

20.52
3.28
12.75-28.42
25.46
12.77

-36
11.57-12.68
9.88
12-01

.41
12.40-12.40
11.4*
12.27

71.7
26.0

39.3
27.7

38.9
23.5

90.1
48.7

94.0
23.9

Table 3
CONSTRUCTION AND LAND DEVELOPMENT LOANS (SECURED AND UNSECURED BY REAL ESTATE)
Size class of l<>#ns (thousands)
•II sizes
ALL BANKS1
Amount of loans (thousands)
Number of loans
Weighted average maturity (months) 2
Loans with fixed rates
Loans with floating rates
Weighted average Interest rate (%)3
Standard error 4
Interquartile range 5
Loans with fixed rates
Loans with floating rates
Percentage of amount of loans:
With floating rates
Secured by real estate
Made under commitment
Made for construction
1-4 family
Multlfamlly
Nonresidential
With no stated maturity
With one-day maturity
48 LARGE BANKS 1
Amount of loans (thousands)
Number of loans
Weighted average maturity (months) 2
Loans with fixed rates
Loans with floating rates
Weighted average Interest rate ( % ) 3
Standard error*
Interquartile range 5
Loans with fixed rates
Loans with floating rates
Percentage of amount of loans:
With floating rates
Secured by real estate
Made under commitment
Made for construction
1-4 family
Multlfamlly
Nonresidential
With no stated maturity
With one-day maturity
OTHER BANKS
Amount of loans (thousands)
Number of loans
Weighted average maturity (months) 2
Loans with fixed rates
Loans with floating rates
Weighted average interest rate (%)3
Standard error*
interquartile range 5
Loans with fixed rates
Loans with floating rates
Percentage of amount of loans:
With floating rates
Secured by real estate
Made under commitment
Made for construction
1-4 family
Multlfamlly
Nonresidential
With no stated maturity
With one-day maturity

See last page for notes to tables.




$1-24

$25-49

$50-90

$100-499

$500 end over

$990,925
23,236
ft. 5
9.0
8.2

$150,071
17,606
6.9
8.5
5.4

$110,531
3,315
7.1
7.7
6.3

$83,576
1,303
9.6
8.2
12.3

$178,568
806
13.2
13.5
13.2

$468,178
206
7.4
9.3
6.6

13.25
.32
12.13-13.88
13.56
13.09

14.16
.36
13.43-14.93
13.98
14.32

14.58
.70
13.42-15.56
14.94
14.16

14.19
.45
13.31-14.89
14.73
13.32

13.02
.28
12.40-13.30
12.90
13.04

12.57
.20
1 2 . 1 2 - 1 3 . 24
12.43
12.63

65.1
92.4
64.4
100.0
33.9
15.9
50.3
4.0
.0

52.7
85.3
75.1
100.0
47.5
3.5
49.0
2.7
.0

46.5
98.0
59.7
100.0
67.3
4.5
28.3
2.9
.0

38.0
95.8
32.6
100.0
76. 1
9.9
14.0
6.8
.0

85.7
95.9
74.7
100.0
28.5
22.4
49.1
6.4
.0

70.5
91.4
63.9
100.0
16.1
21.1
62.8
3.2
.0

$309,960
757
10.3
9.8
10.6

$2,235
219
7.6
7.6
7.7

$3,157
88
12.2
2.7
13.4

$7,457
108
10.3
3.0
10.9

$57,200
243
12.7
10.3
12.9

$239,911
98
9.7
9.9
9.6

12.65
.05
11.85-13.24
12.30
12.88

13.39
.10
13. 1 1 - 1 3 . 8 0
13.65
13.27

12.87
.06
12.55-13.24
12.33
12.94

13.00
. 17
12.52-13.52
12.61
13.03

12.93
.09
12.13-13.24
12.80
12.94

12.56
.08
11.85-13.24
12. 27
12.83

60.6
89.7
50.4
100.0
26.6
17.6
55.8
.6
.0

68.9
89.9
66.4
100.0
51.9
17.6
30.5
3.6
.0

88.9
85.7
82.0
100.0
37.4
17.1
45.5
2.1
.0

92.2
88.1
70.0
100. 0
39.4
10.9
49.7
1.7
.0

92.2
92.6
83.7
100.0
27.4
17.3
55.3
2.6
.0

51.6
89.2
41.3
100.0
25.6
17.9
56.5
.0
.0

$680,964
22,479
7.6
8.5
7.2

$147,836
17,388
6.9
8.6
5.3

$107,374
3,228
6.9
7.7
5.9

$76,119
1,195
9.5
8.2
12.7

$121,368
562
13.5
14.1
13.4

$228,267
107
4.8
6.2
4.6

13.53
.31
12.39-14.89
14.24
13.18

14. 17
.34
13.43-14.93
13.98
14.34

14.63
.69
13.42-15.56
14.96
14.24

14.31
.41
13.74-14.89
14.76
13.39

13.07
.26
12.56-13.31
12.92
13.10

12.58
. 17
12.12-13.24
13.25
12.51

67.2
93.6
70.8
100.0
37.2
15. 1
47.8
5.5
.0

52.5
85.2
75.2
100.0
47.4
3.3
49.2
2.6
.0

45.2
98.4
59.0
100.0
68.2
4. 1
27.7
2.9
.0

32.7
96.6
29.0
100.0
79.7
9.8
10.5
7.3
.0

82.6
97.4
70.5
100.0
29.0
24.7
46.2
8.2
.0

90.4
93.7
87.6
100.0
6.0
24.5
69.5
6.5
.0

Table 4
LOANS TO FARMERS
Size etaes of loans (thousands)
aisteee
ALL BANKS
Amount of loans (thousands)
Number of loans
Weighted average maturity (months) 2
Weighted average Interest rate (%)3
Standard error4
Interquartile ranges
By purpose of loan:
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Other
Percentage of amount of loans:
With floating rates
Made under commitment
By purpose of loan:
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Other
LARGE BANKS 6
Amount of loans (thousands)
Number of loans
Weighted average maturity (months)*
Weighted average Interest rate (%)3
Standard error*
Interquartile range 5
By purpose of loan:
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Other
Percentage of amount of loans:
With floating rates
Made under commitment
By purpose of loan:
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Other
OTHER BANKS6

)

2

J

Number of loans
Weighted average maturity (months) 2
Weighted average Interest rate ( % ) 3
Standard error*
Interquartile range 5
By purpose of loan:
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Other
Percentage of amount of loans:
With floating rates
Made under commitment
By purpose of loan:
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Other
See last page for notes to tables.
* Fewer than 10 sample loans




j
!

$1-8

$10-24

$25-48

$80-99

$100-249

$250 and over

$1,»67,055
58,63*
6.8

$137,726
36,687
6-4

$177,981
11,551
7*6

$171,295
5,039
6.6

$193,955
2,774
7.5

$250,340
1,738
11.9

$535,158
845
4.1

13.61
.56
12.68-14.50

14.30
.15
13.88-14.74

14.25
.34
13.42-14.71

13.92
.20
13.19-14.49

13.94
.47
13.42-14.51

13.82
.43
13.80-14.45

12.98
.67
11.55-14.23

14.00
13.87
13.37
13.91
12.93

14.22
14.30
14.26
14.50
14.32

13.99
15-13
14.11
14.09
14.08

14.20
14.14
14.06
13.51
13.32

14.11
13.83
13.78

13.45
13. 72

13.92
13.37
11,54

13.78

13.13

12.54

28.8
36.6

23.9
18.1

a 1.1
21.6

22.5
18.4

29.4
23.8

32.9
28.4

32.4
60.7

26.5
13.8
34.8
11.3
12.2

13.3
It. 2
49.6
16.3
6.6

19.4
16.8
32. 1
26.1
5.5

26.9
12.2
28.3
29.7
2.9

37.9
9.0
40.1

8.4
56.6

36.4
IS. 3
22.0

10.8

5.8

22.4

$364,458
3,012
4.2

$5,008
1,253
5.6

$11,274
745
6.2

$12#751
387
6.9

$16,511
241
5-5

$33,998
225
11.3

$284,917
161
3.1

11.82
.53
10.62-12.64

13.45
.09
12.71-13.83

13.08
.17
12.51-13.65

12.93
.11
12.41-13.42

12.90
.41
12.28-13.49

12.62
.16
12.01-13.24

11.53
.58
10.62-12.38

12.32
12.12
11.62
13.40
11.29

13.06
13.37
13.46
14.03
13.48

12.96
13.00
13.06
13.92
13.08

12.60

12.39

12.54

12.28

13.06

12.75

12.70

11.13

12.83

12.71

12.61

10.94

62.2
74.6

78.3
67.6

85.7
71.6

78.9
72.5

80.6
85.6

83.0
76.5

56.6
74.1

28.5
9.8
40.2
.8
20.7

9.5
8.8
59.6
5.8
16.3

12.4
4.9
62.7
4.4
15.6

14.5

16.4

24.5

31.3

55.4

47.5

48.3

36.9

21.0

19.1

16.5

21.6

$1,102,597
55,622
7.6

$132,718
35,435
6,4

$166,707
10,806
7.7

$158,544
4,652
6.6

$177,445
2,533
7.6

$216,342
1,513
12.0

14.24
.15
13.92-14.77

14.33
.11
13.96-14.74

14.33
.29
13.61-S4.71

14.00
.17
13.42-14.49

14.04
.23
13.80-14.51

13.92-14.49

14.61
14.24
14.08
13.91
14.13

14.25
14.32
14.29
14.50
14.40

14.03
19-17
14.26
14.10
14.30

14.27

14.24

14.23
13.SI

13. 96

17.7
24.1

21.8
16. 2

16.8
18.2

17.9
14.0

24.7
18.3

25.8
15. 1
33.1
14.8
9.4

13.4
14.4
49.3
16.7
6.3

19.9
17.6
30.1
57.6
4.8

27.9

39.9

26.1
31. 9

39.4

*

14.01

13.85
*

25.1
20.8

*

Tables'
SHORT-TERM COMMERCIAL AND INDUSTRIAL L O W MADE BELOW HUME
Size class of l o w (thousands)

ALL BANKS
Average prime rate 7
Characteristics of loans
made at rates below prime: 8
Amount of loans <mllllons)
Number of loans
Average maturity (months)2
Percent with no stated maturity
Percent with one-day maturity
Average effective Interest rate <%)3
Average nominal Interest rate (%)8
48 LARGE BANKS
Average prime rate 7
Characteristics of loans
made at rates below prime: 8
Amount of loans (millions)
Number of loans
Average maturity (months) 2
Percent with no stated maturity
Percent with one-day maturity
Average effective Interest rate (%)3
Average nominal Interest rate (%)9
OTHER BANKS
Average prime rate?
Characteristics of loans
made at rates below prime: 8
Amount of loans (millions)
Number of loans
Average maturity (months) 2
Percent with no stated maturity
Percent with one-day maturity
Average effective Interest rate (%)3
Average nominal interest rate (%)9
See last page for notes to tables.




all sizes

$1-24

$25-46

$50-W

11.1

11.9

11.7

20,7J5
10,151

24
3,867

0.7
8.9
21.7

$100-4*

$500-990

$1000 and over

11.6

11 3

11.0

11.0

IS
635

38
632

345
2,117

J84
266

20^125
2.633

4.3
39.8
1.0

3.J
67.S
0.4)

4.3
67.9
2.8

4.8
30.6
2.0

1.4
18.8
9.5

0.7
6.5
J2.2

10.13
9.95

11.53
11.25

11.70
11.54

12.46
U-8Q

11.58
11.20

10. 64
10.1*

10.41
S. 95

11.0

11.0

11.0

11.0

11.0

11.0

13.0

17,298
2,419

1
99

2
67

2
29

25
115

73
110

17,194
2,000

0.5
5.8
22.0

2.9
15. 1
S.4

4.8
18. C
O.C

1.9
27.6
0. 0

2.2
32.0
2.5

1.5
18.2
6.7

0.5
5.6
22.1

10. <2
9.93

8.69
8.32

8.77
8.45

10.93
10.41

10.49
10.03

10.55
10.02

10.42
5.93

il.3

12.0

11.7

11.7

11.4

11.0

11.0

3,<37
7,731

23
3,768

17
548

36
603

319
2,005

111
156

2,931
634

2.2
24.2
20.0

4.4
41.0
0.8

3.3
?5.j
0.0

4.6
70.0
3.0

5.0
30.5
2.0

1.4
19.2
11.3

1.9
22.7
*2- 8

10.48
10.02

11.67
11.39

12. 13
II.**

12.54
11.87

11.67
11.25

10.70
10.19

10.30
9.83

NOTES
The survey of terms of bank lending to business is
taken of about 340 banks selected to represent all
sizes of banks. The sample data are collected over one
business week and used to estimate lending terms at
all insured commercial banks. Short term loans have
original maturities of less than one year, and long term
loans have maturities of one year or more. Construction and land development loans include both
unsecured and loans secured by real estate. Thus,

some of the construction and land development loans
would be reported on the statement of condition as
real estate loans and the remainder as business loans.
The survey of terms of bank lending to farmers covers
about 250 banks selected to represent all sizes of
banks. Loans secured by real estate, purchased loans,
foreign loans, and loans of less than $1,000 are excluded from the survey.

1

As of 6 / 3 0 / 8 3 , average domestic assets of
48 large banks were $14.0billion and assets of
the smallest of these banks were $2.9 billion. For
all insured banks, total domestic assets averaged
$132 million.

6

Among banks reporting loans to farmers (Table 4),
most "large banks ' (survey strata 1 to 3) had over
$500 million in total assets, and most "other
banks" (survey strata 4 to 6) had total assets
below $500 million.

2

The weighted average maturity is calculated only
for loans with a stated date of maturity (that is,
loans payable on demand are excluded). In computing the average, each loan is weighted by its
dollar amount.

7

The prime rate reported by each bank is weighted
by the volume of loans extended and then averaged.

8

The approximate compounded annual interest
rate on each loan is calculated from survey data
on the stated rate and other terms of the loan;
then, in computing the average of these approximate effective rates, each loan is weighted by its
dollar amount.

This survey provides data on gross loan extensions made during one week of each quarter. The
proportion of those loan extensions which is
made at rates below prime may vary substantially
from the proportion of such loans outstanding in
bank loan portfolios.

9

The approximate annual interest rate on each
loan—without regard to compounding—is
calculated from survey data on the stated rate
and other terms of the loan; then, in computing
the average of these approximate nominal rates,
each loan is weighted by its dollar amount.

3

4

The chances are about 2 out of 3 that the average
rate shown would differ by less than this amount
from the average rate that would be found by a
complete survey of lending at all banks.

5

The interquartile range shows the interest rate
range that encompasses the middle fifty percent
of the total dollar amount of loans made.