Full text of E.2 Survey of Terms of Business Lending : June 21, 1983

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FEDERAL RESERVE statistical release
For immediate release
JUNE 21. 1983

SURVEY OF TERMS OF BANK LENDING MADE DURING MAY 2 - 6 ^ 1983
Table 1
SHORT-TERM COMMERCIAL AND INDUSTRIAL LOANS (OTHER THAN CONSTRUCTION AND LAND DEVELOPMENT)
Size class of loans (thousands)
all sizes

$1-24

$25-48

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

$39,234,058
200,351
1. 4
.9
2.2

$1,048,174
139,052
4.0
3.4
5.5

$837,619
25,160
4.2
3.7
5.3

$1,106,321
17,285
4.5
3.3
5.9

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

$1,043,487
1,580
3.3
1.9
4.1

$33,007,757
4,610
.9
.6
1.5

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

10.36
.18
9.55-10.92
10.27
10.49

13.86
.24
12.68-14.49
14.39
12.96

13.68
.25
12.34-14.11
14.36
12.55

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

9.96
.16
9.52-10.04
9.89
10.09

41. 1
63.0
13.3
36.0

36.6
39.5
12.7
.1

37.6
37.9
18.1
.0

51.9
61.4
16.9
•1

63.4
54.2
29.8
4

71.6
70.4
32.3
2.1

38.5
64.8
11.3
42.7

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

$29,709,891
17,996
.9
.6
1.5

$68,886
6,548
4.7
3.1
5.5

$79,963
2,376
4.8
2.8
5.3

$142,557
2,184
5.1
2.6
5.7

$578,977
2,873
4.0
1.9
4.6

$446,646
667
2.9
1.5
3.7

$28,392,863
3,348
.8
.5
1.3

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

10.03
.08
9.55-10.10
9.94
10.15

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
11.57-12.68
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

9.95
.09
9.54- 9.99
9.92
10. 00

40. 1
64.4
10.6
43.0

74.1
57.9
21.7
. 1

85.7
62.2
27.1
.0

85.8
71.0
33.3
. 1

80.2
66.4
35.6
.5

71.0
75.9
33.6
4.1

38.4
64.2
9.6
44.9

$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

1 1.45
. 10
1 0 . 9 2 - 1 2 . 13
10.90
11.67

10.05
.12
9.40-10.50
9.68
10.63

$50-99

$100-499

$500-999

$1000 and over

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 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

$9,524,166
182,356
3. 1
2.2
4.9

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

11.42
.15
9.58-12.68
11.38
11.46

13.94
.24
12.74-14.58
14.41
13.02

13.82
.23
1 2 . 6 8 - 1 4 . 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

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

Percentage of amount of loans:
With floating rate
Made under commitment
With no stated maturity
With one-day maturity
See last page (or notes to tables.




72.0
66.3
31.3
.6

38.9
68.9
22.3
29.1

TaWe2
LONG-TERM COMMERCIAL AND INDUSTRIAL LOANS (OTHER THAN CONSTRUCTION ANOLAND DEVELOPMENT)
all sizes

$1-99

Size claw of loans (thousands)
$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

St,204,614
38,494
56.6
44.0
62.7

$776,312
35,845
33.4
36.9
26.3

$420,291
1,997
35.6
22.0
46.3

$180,470
265
44.6
58.1
42-0

$2,827,541
387
66.8
55.4
70. 1

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

11.41
.44
9.71-12.19
12.24
11.01

14.52
.75
12.13-14.93
15.01
13.51

12.86
.36
11.73-14.00
13.78
12.15

11.92
.18
11.19-12.68
11.95
11.92

10.31
.21
9.63-11.02
9.55
10.53

67.4
72.3

33.0
18.3

56.1
42. 8

84.1
76.2

77.5
91.3

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

$2,584,866
2,358
69.3
54. 1
74.0

$36,098
1,484
39.6
42.5
38.6

$106,694
479
44. 3
46.6
43.8

$100,199
149
40.9
54.4
38.8

$2,341,875
247
72.1
54.6
77.8

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
12.13-13.80
14.61
12.67

11.95
.17
11.02-12.68
11.98
11.95

12.12
.10
11.30-13.24
12.36
12.09

10.18
.05
9.56-10.61
9.53
10. 39

76.4
91.9

75.3
43.0

81.9
82.8

86.9
92.3

75.7
93.0

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

$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

Weighted average interest rate (°/o)3
Standard error 4
Interquartile range5
Loans with fixed rates
Loans with floating rates

13.07
.42
11.23-14.00
14.26
12.03

14.59
.74
12.13-14.93
15.02
13.61

13.17
.31
12.13-14.00
13.99
12.26

11.67
. 15
11.02-12.68
11.62
11.69

10.93
.20
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

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

Percentage of amount of loans:
With floating rates
M a d e under c o m m i t m e n t

See last page for notes to tables.




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

$1-24

$25-49

$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

$2,917,014
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
1,4*0
7; 6
6.1
11.3

$1,154,649
284
8.9
4.4
12.9

Weighted average interest rate (%)3
Standard error*
Interquartile range 5
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

ia#8
.31
1 1 . 8 4 - 1 2 . 12
11.93
12.46

10.91
.40
9.55-12.41
10.01
11.59

47.7
56.7
48.3
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

'93*4'"
29.5
93.5
22.4
100.0
8.3
7.4
84.3
2.5
.0

56.9
36.0
57.7
100.0
2.4
2.6
95.0
8.2
29.9

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

$1,047,549
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 4
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

$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

$169,849
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
14.03-14.76
14.43
12.95

12.98
. 17
12.50-13.31
13.16
12.94

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

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
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
Multifamily
Nonresidential
With no stated maturity
With one-day maturity

See last page for notes to tables




81.2
82.6
65.4
100.0
46.1
17.6
36.3
6.6
.0

^8*2
34^8

12.07
.28
11.84-11.84
11.93
12.58

12.17
.30
1 1 . 0 2 - 1 2 . 75
11.70
12. 30

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
1.4

Table 4
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*
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
LARGE BANKS6
Amount of loans (thousands)
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
OTHER BANKS 6
Amount of loans (thousands)
Number of loans
Weighted average maturity (months)2
Weighted average interest rate (e/e)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




$1-9

$10-24

$25-49

$50-99

$100-249

$250 and over

$1,698,648
79,848
lO.b

$195,436
54,748
6.8

$204,859
13,889
8.8

$168,982
5,146
8.0

$254,228
3,625
7.7

$240,631
1,724
29.4

$634,513
717
7.0

13.26
.31
12.13-14.2 1

14.01
.19
13.43-14.56

13.80
.27
13.29-14.18

13.60
.33
1 2 . 9 6 - 1 4 . 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

S3.5
54.3

29.1
21.2

30.8
28.9

42.5
30.6

40.4
48.0

52.3
51.6

77.0
82.4

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
38.5

$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
13.32
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 I

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

$148,207
4,522
8. 1

$228,603
3,250
7.9

$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
13.73

14.05

13.01

•

•

37.3
34.8

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

13.94
*

*

12.03

11.61

40.4

35.8
46.7

45.8
47.4

55.1
40.5

35.2

52.0

55. 1

12. 1

*

#

1

*

*

Tables
SHORT-TERM COMMERCIAL AND INDUSTRIAL LOANS MADE BELOW PRIME
Size class of loans (thousands)
$1000 and over

$1-24

$25-49

$50-99

10.b

11.7

11.8

11.5

10.9

29,615
15,147

43
6,206

33
1,045

175
2,714

254
1,188

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 rete (%)9

9.72
9.30

11.44
11.05

11.82
11.43

11.50
11.04

9.87
9.65

9.9$
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

9,1J
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

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

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: 8
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
Average maturity (months) 2
Percent with no stated maturity
Percent with one-day maturity

1.8
16.3 .
32.3

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

9.74
9.35

See last page for notes to tables.




$100-499

$500-999

all sizes

10.5

10.5

28,878
3.644

NOTES
The survey of terms of bank lending to business is some of the construction and land development loans
taken of about 340 banks selected to represent all would be reported on the statement of condition as
sizes of banks. The sample data are collected over one real estate loans and the remainder as business loans.
business week and used to estimate lending terms at The survey of terms of bank lending to farmers covers
all insured commercial banks. Short term loans have about 250 banks selected to represent all sizes of
original maturities of less than one year, and long term banks. Loans secured by real estate, purchased loans,
loans have maturities of one year or more. Construc- foreign loans, and loans of less than $1,000 are excludtion and land development loans include both ed from the survey.
unsecured and loans secured by real estate. Thus,
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'1 (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.