Full text of E.2 Survey of Terms of Business Lending : July 7, 1983

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CQRRECT£CLCQP Y
JULY 7, 1983
SURVEY O F TERMS O F B A N K LENDING M A D E DURING M A Y 2 ^ 1 J f t 3 .
Table 1
SHORT-TERM COMMERCIAL AND INDUSTRIAL LOANS (OTHER THAW CONSTRUCTION AND LAND' DEVELOPMENT)
Size class of loans (thousands)
$25-49

all sizes

$1-24

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

$38,047,964c
200,351c
1.1
.9
2.2

$1,048,221c
139,058c
4.0
3.4
5.5

Weighted average interest rate (%)3
Standard error*
Interquartile range »
Loans with fixed rates
Loans with floating rates

10.30
.16
9.55-10.50
10.21
10.(13

13.8*
.24
12.68-14.49
14.39
12.96

13.68
.25
12.34-14.11
14.36
12.55

#1.0
65.0
13.2
37. 1

36.6
39.5
12.7
.1

37.6
37.9
18.1
.0

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

f837,763c
25,163c
4.2
3.7
5.3

$50-99

$100-499

$500-990

$2,190,699
12,665
4.9
4.7
5.1

$1,043,467
1,580
3.3
1.9
4.1

$31,820,476c
4,581c
• 8c
.5c
1.5c

12.62
.27
11.57-13.80
13.29
12.00

11.87
.07
11.02-12.47
11.86
11.87

11.34
.12
10.92-12.10
10.73
11.58

9.87c
.13c
9 . 5 2 - 9.96c
9.80c
9.99c

51.9
61.3
16.9
.1

63.4
54.2
29.8
.4

71.6
70.4
32.3
2.1

38.3c
67.3c
11.2c
44.3c

$578,977
2,873
4.0
1.9
4.6

$446,646
667
2.9
1.5
3.7

$27,205,582c
3,320c
.7c
. 5c
1.2c

$ 1,107,318c
17,304c
4.5
3.3
5.9

i $1000 and over

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

$28,523,797c
17,996c
.8
.5
1.4

Weighted average interest rate (%)3
Standard error 4
Interquartile range 5
Loans with fixed rates
Loans with floating rates

9.93
.02
9.54- 9.99
9.85
10.06

12.83
.02
12.01-13.38
13.53
12.59

12.33
.07
11.91-13.11
12.60
12.28

12. 18
.09
11.58-12.68
12.44
12.14

11.76
.03
11.02-12.19
11.33
11.86

11.18
.06
10.40-11.69
10.51
11.46

9.85c
.02c
9.53- 9.96c
9.82c
9.88c

40.0
67. 1
10.4
44.8

74.1
57.8
21.7
.1

85.7
62.1
27.2
.0

85.4
70.5
33.0
.1

80.2
66.4
35.6
.5

71.0
75.9
33.6
4.1

38.2c
67.0c
9.3c
46.9c

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

$9,524,166
182,356
3.1
2.2
4.9

$979,288
132,504
4.0
3.4
5.5

$757,656
22,785
4.1
3.7
5.2

$963,765
15,101
4.5
3.4
6.0

$1,611,722
9,792
5.3
5.1
5.4

$596,842
913
3.6
2.3
4.4

$4,614,894
1,262
1.7
.7
4.1

Weighted average Interest rate (%) 3
Standard error 4
Interquartile range 5
Loans with fixed rates
Loans with floating rates

11.42
/
-'5
9.58-12.68
11.38
11.46

13.94
.24
12.74-14.58
14.41
13.02

13.82
.23
12.68-14.11
14.40
12.62

12.68
.25
11.57-13.86
13.33
11.96

11.91
.06
11.02-12.61
11.94
11.88

11. #5
.10
10.92-12.13
10.90
11.67

10.05
. 12
9.40-10.50
9.68
10.63

43.9
58.8
21.5
14.2

34.0
38.3
12.1
.0

32.5
35.3
17.2
.0

46.9
60.0
14.5
.1

57.4
49.8
27.7
.3

72.0
66.3
31.3
.6

38.9
68.9
22.3
29.1

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 rate
Made under commitment
With no stated maturity
With one-day maturity
See last page for footnotes,
c = Corrected data




$68,933c
6,554c
4.7
3.1
5.5

$80,107c
2*379c
4.8
2.8
5.3

$143,553c
2,203c
5.1
2.6
5.6

•

Table 2
LONG-TERM COMMERCIAL AND INDUSTRIAL LOANS (OTHER THAN CONSTRUCTION AND LAND DEVELOPMENT)
Size class of loans (thousands)
all sizes
A l l BANKS 1
3QA$nount of loans (thousands)
<
"Number of loans
Weighted average maturity (months) 2
.
Loans with fixed rates
Loans with floating rates

56.6
44.0
62.7

$1-99

'

$100-499

:*#

33.4
36.9
26.3

•

$2,827,541
387
66.8
55.4
70.1

11.92
12.86
.18
.36
11.19-12.68
11.73-14.00
11.95
13.78
12.15, /

10.31
.21
9.63-11.02
9.55
f
^.53

14.52
.75
12.13-14.93
15.01
13.51

67.4
72.3

33.0
18.3

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

$2,584,866
2,358
69.3
94. !
74.0

$36,098
1,484
39.6
42.5
38.6

$106,694
479
44.3
46.6
43.8

Weighted average interest rate (%)3
Standard error 4
Interquartile range 5
Loans with fixed rates
Loans with floating rates

10.37
.09
9.63-11.46
9.74
10.56

13.15
.03
12. 1 3 - 1 3 . 8 0
14.61
12.67

76.4
91.9

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 rates
Made under commitment

Percentage of amount of loans:
With floating rates
Made under commitment

Percentage of amount of loans:
With floating rates
Made under commitment
See last page for notes to tables.




44.6
58.1
42.0

22.0
46.3

11.41
.44
9.71-12.19
12.24
11.01

Weighted average interest rate (%)3
Standard error 4
Interquartile range 5
Loans with fixed rates
Loans with floating rates

'

$1000 and over

$500-999

ttl

.76/1

'

77.5
91.3

$100,199
149
40.9
w
54.4
38.8

$2,341,875
247
72. 1
• 54.6
7 7 . ft

11.95
.17
11.02-12.68
11.98
11.95

12. 12
. 10
11.30-13.24
12.S6
12.09

10; 18
.05
9.56-10.61
9.53
10.39

75; 3
43.0

81.9
82.8

86.9
92. 3

75:7
93.0

$1,619,748
36,136
36.2
35.8
36.6

$740,214
34,361
33.1
36.8
24.9

$313,597
1,519
32.7
19.1
47.8

$80,271
116
49.3
61. 1
46.4

$485,666
141
41.1
62.9
37.6

13.07
.42
11.23-14.00
14:26
12.03

14*59
.74
12.13-14.93
15.02
13.61

13L17
.31
12.13-14.00
13.99
12.26

11.67
.15
1 1 . 0 2 - 1 2 . 68
11.62
11.69

10.93
.2*
10-31~.11.73
..
9.70,
11.13

53.2
41.2

31.0
17.1

47.4
29.2

80. 5
56.0

\

86.2
83.2

Table 3
CONSTRUCTION AND LAND DEVELOPMENT LOANS (SECURED AND UNSECURED BY REAL ESTATE)
She class of loans (thousands)
all sizes

$1-24

$25-48

$50-99

$100-499

$500 and over

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

$1,917,01*
25.727
8.3
5.2
12.2

$199,628
21,047
5-8
5.7
5.9

$77,218
2,219
7.1
6.8
8.0

$47,315
716
13.8
8.6
14.8

$438,205
1.460
7.6
6.1
11.3

$1,15*,6*9
284
8.9
4.4
12.9

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

11.72
.58
10.18-12.68
11.53
11.93

14.44
.64
13.50-14.74
14.97
13.34

13.99
.51
13.52-14.76
14.42
12.93

12,91
.41
12.46-13,31
13.16
12.87

12.08
.31
11.84-12.12
11.93
12-46

10.91
.40
9.55-12.41
10.01
11.59

47.7
56.7
#8.3
100.0
7.3
5.5
87.2
6.9
18.0

32.2
75.3
41.5
100.0
20.2
14.6
65.1
10.7
.0

28.8
94. 1
61.9
100.0
17.2
6.1
76.7
2.8
.0

85.0
84-2
64.8
100.0
46.1
17.2
36.7
7.0
.4

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

$ 1 , 0 * 7 , 549
1,107
, 7.9
4.3
11.2

$4,793
506
8.0
10.6
7.7

$3,908
111
8.9
48.0
8.0

$9,569
131
8.5
.0
8.5

$44,480
185
8.6
8.2
8.6

$984,799
173
7.8
4.2
11.6

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

10.79
.20
9.55-12.13
9.89
11.51

12.96
.19
12.40-13.80
13.44
12.90

12.86
.13
12.60-13.52
12.55
12.86

12.64
.37
12.40-13.24
.00
12.64

12. 17
.11
11.57-12.68
10.74
12. 23

10.69
.25
9.55-11.85
9 . 88
11.41

55.8
28.4
58.2
100.0
2.7
1.5
95.9
8.1
32.7

89.1
93.3
83.6
100.0
39.7
12.9
47.4
5.0
.0

98.2
86.9
85.5
100.0
23.7
11.6
64.6
10.3
.0

100.0
90.8
62.6
100.0
46. 1
15.9
38. 1
8.6
2. 2

96.0
63.6
71.9
100.0
17. 1
14-0
68.9
6.0
.0

53.2
25.7
57.3
100.0
1.3
.7
98.0
8.2
34.8

$869,465
24,620
8.8
6.1
13.9

$194,835
20,542
5.7
5.7
5.8

$73,310
2,108
7.0
6.7
8.0

$37,746
585
15. 1
8.6
16.7

$393,726
1,275
7.5
6. 1
12.7

$169,8*9
111
14.9
5.7
17.8

12.84
.53
11.84-13.75
12.94
12.67

14.48
.60
13.50-14.74
14.97
13.38

14.05
.49
14.03-1*.76
14.43
12.95

12.98
.17
12.50-13.31
13. 16
12.94

12.07
.28
11.84-11.8*
11.93
12.58

12.17
.30
11.02-12.75
11.70
12.30

37.8
90.9
36.3
100.0
12.9
10.3
76.8
5.5
.3

30.8
74.8
40-4
100.0
19.7
14.7
65.6
10-8
.0

25. 1
94.4
60.6
100.0
16.8
5.8
77.4
2.4
.0

81.2
82 6
65.*
100.0
46.1
17.6
36.3
6.6
-q

22.0
96. 8
16.8
100.0
7.3
6.7
86.0
2.1
.0

78.4
95.7
60.0
100.0
8-9
13.9
77.1
8.3
1.4

Percentage of amount of loans:
With floating rates
Secured by real estate
Made under commitment
Made for construction
1 4 family
Multifamily
Nonresidential
With no stated maturity
With one-day maturity

Percentage of amount of loans:
With floating rates
Secured by real estate
Made under commitment
Made for construction
1-4 family
Multifamily
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
Loaris with floating rates
Weighted average Interest rate (%)3
Standard error*
Interquartile range5
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
14 family
Multifamily
Nonresidential
With no stated maturity
With one-day maturity

See last page for notes to tables.




29.5
93.5
22.4 "
100.0
8.3
7.4
84.3
2.5
.0

ft*
"

' 56.9
36.0
57.7
100.0
2.4
2.6
95.0
8.2
29.9

Table*
LOANS TO FARMERS
Size class of loans (thousands)
all sizes
ALL BANKS
Amount of loans (thousands)
Number of loans
Weighted average maturity (months) 2
Weighted,average interest rate (%)3
Standard error 4
Interquartile ranges
By purpose of loan:
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Other

$1-8

$10-24

"

325-49

$50-99

$100-249

$250 and over

*1,696,6*8
79,848
10.6

$195,436
54,748
6.8

$204,659
13,889
8.8

$168,982
5,146
8.0

5254,228
3,625
7.7

$240,631
1,724
29.4

$634,513
717
7.0

13-26
.31
12.13-14.21

14.01
.19
13.43-14.56

13.80
.27
13.29-14.18

13.60
.33
12.96-14.20

14.23
.40
1 3 . 4 2 - 1 5 . 19

13.68
.61
13.00-14.45

12.21
.39
11.83-12.55

13.35
13.00
13.25
14.78
12.62

14.26
14.01
13.98
13.90
14.19

13.90
12.96
13.59
15.01
14.08

13.44
13.75
13.80
13.64
12.97

14.36
13.26
13.54
15.68
13.75

13.71

12.17

13.76
14. 16
13.74

12.35

77.0
82.4

12.03

Percentage of amount of loans:
W it h floating rates
Made under commitment
By purpose of loan:
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Other

53.5
54.3

29.1
21.2

30.8
28.9

42.5
30.6

40.4
48.0

52.3
51.6

12-2
5-1
50. 2
10.0
22-5

7.9
8.5
65.7
9.5
8.4

12.2
11.1
54.8
13.9
8.1

12.3
8.7
56.5
5.2
17.3

11.7
4.2
36.7
26.5
21.0

21.5

10.3

48.8
15.2
9.3

48.1

LARGE BANKS6
Amount of loans (thousands)
Number of loans
Weighted average maturity (months) 2

$601,444
5 , 143
6.9

$9,782
2,479
6.7

$15,485
1,061
6.9

$20,775
624
6. 8

$25,625
375
7.1

$46,024
302
6.5

$483,753
301
6.9

12-01
.18
11.74-12.31

13.03
.11
12.36-13.47

12.76
.09
12.04-13.31

12.72
. 13
12.12-13.31

12.54
.11
12.00-13.31

12.28
.24
11.61-12.96

11.88
.37
11.74-12.13

12.02
12.23
12.16
12-95
11-71

12.98
1 3 . 32
12.96
13.51
13.20

12.74
12.93
12.66
13.57
12.79

12.59
12.73
12.35
13.25
13.04

12.01

12.28

11.91

12.39
13.38
12.37

11.92
12.89
12.54

12.11

83. 1
89.8

74.3
71.6

80.4
68.4

83.9
62.6

80.9
59.7

79.8
69.7

83.8
95.5

12- 1
2.7
46.0
3.5
35. 8

6.5
4.6
70.7
2.7
15.5

6.2
8.3
65.2
6.0
14.3

13.0
5.5
41.3
22.6
17.6

10.0

26.0

11. 1

50. 1
19.3
14.5

35.2
14.9
18.7

45.9

$1,097,204
74,705
12.6

$185,654
52,268
6.8

$189,374
12,827
8.9

5148,207
4,522
8. 1

$228,603
3,250
7.8

$194,607
1.421
34.1

$150,759
416
7.5

13.94
-25
13.42-14.49

14.06
.15
13.43-14.66

13.88
.25
13.42-14.22

13.72
.30
13.00-14.26

14.42
.39
13.42-15.21

14.01
.56
13.24-14.74

13.28
. 10
12.89-13.69

14.07
13.17
13.77
15.03
13-80

14.31
14.02
14.03
13.90
14.29

13.94
12.97
13.69
15.06
14.28

13.57

14.05

13.01

45.8
47.4

55.1
40.5

Weighted average interest rate (%)3
Standard error 4
Interquartile range5
Bv ouroose of loan:
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Other
Percentage of amount of loans:
W'th floating rates
Made under commitment
By purpose of loan:
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Other
OTHER BANKS 6
Amount of loans (thousands)
Number of loans
Weighted average maturity (months) 2
Weighted average interest rate (%)3
Standard error 4
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




13.94

*

26.8
18.6

26-7
25.7

36.7
26. 1

12.3
6.4
52.4
13.6
15.2

8.0
8.7
65.5
9.8
8.0

12.6
11.3
53. 9
14.5
7.5

58.6

12.1

40.4

*

35.8
46.7
*

35.2

#
*

11.61

*

13.73
*

37. 3
34.8

38.5

"

*

52-0

*

55.1
*

Table*
SHORT-TERM COMMERCIAL AND INDUSTRIAL LOANS MADE BELOW PRIME
Size class of loans (thousands)
all sizes

$1-24

$25-49

$50-99

10. b

11.7

11.8

11.5

10.9

•0.5

10. 5

29,615
15,147

43
6,206

33
1,045

175
2,714

254
1,188

232
349

28,878
3,644

Average maturity (months) 2
Percent with no stated maturity
Percent with one-day maturity

0.8
9.1
46.8

5.3
8.7
0.0

5.7
16. 1
0.0

5.9
2.7
0.2

7.6
13.3
2.0

1.8
17.4
7.6

0.7
9. 1
47.9

Average effective interest rate (%)3
Average nominal interest rate (%) 9

9 . 72
9.30

11.44
11.05

11.82
11.43

11.50
11.04

9.87
9.65

9.94
9.53

9.70
9.28

10.5

10.5

10.5

10.5

10.5

10.5

10.5

25,459
3,422

1
102

4
105

4
68

45
174

119
174

25,287
2,799

Average maturity (months) 2
Percent with no stated maturity
Percent with one-day maturity

0.6
8.0
49.2

4.9
21.9
0.0

5. 1
12.2
0.0

5.1
34,5
0.0

1.8
29.7
3.9

1.4
14.8
11.7

0.6
7.9
49.5

Average effective interest rate (%)3
Average nominal interest rate (%)9

9.72
9.29

9.20
8.86

7.73
7.47

9.13
8.79

9.76
9 . 36

9.93
9.51

9.71
9.29

11.0

11.8

12.0

11.6

11. 1

10.5

10.5

4 , 155
11,725

42
6,104

29
940

170
2,647

209
1,014

113
175

3,592
845

Average maturity (montns)2
Percent with no stated maturity
Percent with one-day maturity

1.8
16.3
32.3

5.3
8.4
0.0

5.8
16.6
0.0

5.9
1.9
0.2

8.5
9.7
1.5

2.2
20.1
3. 2

1.1
17.3
37.2

Average
active Interest rate (%)3
Average nominal Interest rate (%) 9

9.74
9.35

11.50
11.10

12.34
11.94

11.56
11. 10

9.89
9.72

9.96
9.56

9.60
9.20

ALL BANKS
Average prime rate 7
Characteristics of loans
made at rates below prime: 8
Amount of loans (millions)
Number of loans

48 LARGE BANKS
Average prime rate 7
Characteristics of loans
made at rates below prime: 6
Amount of loans (millions)
Number of loans

OTHER BANKS
Average prime rate 7
Characteristics of loans
made at rates below prime: 8
Amount of loans (millions)
Number of loans

See last page for notes to tables.




$100-499

$500-999

$1000 and over

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 12/31/82. average domestic assets of
48 large banks were $13 9 billion and assets of
the smallest of these banks were $2.7 billion. For
all insured banks, total domestic assets averaged
$129 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.