The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE statistical release
UBRARYPOR
E. 2
SURVEY OF TERMS OF BANK LENDING
APR
6 1987
IMMEDIATE RELEASE
March 30, 1987
Notes on Survey Content
A cover note to the previous E,2 release, dated December 23, 1986,
presented data indicating that commercial and industrial loans priced with
reference to the prime rate most commonly are made in smaller denominations
and are, on average, more expensive than loans priced with respect to other
reference rates. This cover note provides additional information on the
pricing of prime-based loans—by far the most frequently made type of C&I
loan.
As shown in the table on this page, almost one-fourth of all primebased loans made in February were priced at the prevailing prime rate itself,
while close to two-thirds were made at rates between prime and prime plus 2
percentage points. Most loans priced at more than 2 percentage points over
prime were made in denominations of under $500,000, although 6-1/2 percent
of the loans made in amounts of $1 to $5 million had this expensive pricing.
The wide spectrum of rates at which prime-based loans of all sizes are made
appears to reflect primarily the varying degrees of risk that banks assign to
different loans. Lesser risk often attributed to larger compared to smaller
b o r r o w e r s
l i k e l y
e x p l a i n s
i n
p a r t
expensive than smaller loans.
t h e
t e n d e n c y
for
l a r g e r
l o a n s
to
b e
l e s s
Lower rates on larger loans presumably also
Selected Characteristics of Prime-Based
Commercial and Industrial Loans, February 2-6, 1987
(all insured commercial banks)
'
(•
I
*
Loan Size
($1,000)
0-499
500-999
1,000-4,999
5,000 +
All loans
Note:
Gross Loans
Extended
($ billion)
Average
Loan
Rate
(percent)
Below
Prime
Percent of Loans Extended at Rates
Above
Above Prime
Prime+1%
At
to
to
Above
Primef 1%
Prime
Primef 2%
Primef2%
5.3
1.4
3.9
4.1
8.80
8.20
8.23
8.14
.6
1.8
2.4
9.3
17.0
33.3
31.4
21.8
37.6
41.4
42.1
36.7
28.1
20.2
17.6
31.8
16.7
3.2
6.4
.4
14.7
8.41
3.7
23.7
38.9
25.6
8.1
The prevailing prime rate during the survey week was 7,5 percent.
—
2
—
reflect the declining importance of the fixed costs of lending as loan size
increases. In addition, customers {taking down large loans typically have
more borrowing alternatives and thus may have greater leverage in rate
negotiations.
The small share of prime-based loans made at rates below prime in
February appears to reflect a mixture of restructured loans (loan repriced to
recognize financial difficulties borrowers have encountered) and loans priced
at discounts from prime on the basis of borrowers' negotiating power or other
competitive factors. Restructuring appears to have been an important element
in the below-prime pricing of loans made in denominations of under $1 million,
as these relatively small loans had rates that actually averaged below those
on large below-prime loans. Below-prime loans made in amounts of $1 million
and above appear similar to (but much less common than) the large short
maturity loans that banks price with respect to the federal funds rate and
other money market rates.
Selected Characteristics of Prime-Based
Commercial and Industrial Loans by Relation of
Loan Rate to Prime Rate, February 2-6, 1987
(all insured commercial banks)
Loan Size
($1,000)
Loans Extended
at Rates Below Prime
Average
Average
Average
Maturity
Size
Rate
(months)1
($1,000)
(percent)
Loans Extended at Rates of
Prime and Above
Average
Average
Average
Rate
Maturity
Size
($1,000)
(percent)
(months)*
0-499
500-999
1,000-4,999
5,000 +
6.34
6.49
6.84
6.65
125
694
2,199
6,909
16.1
7.4
.8
1.9
8.81
8.23
8.27
8.30
45
634
1,924
13,307
16.0
23.1
21.6
39.9
All loans
6.65
1,361
2.7
8.47
117
25.7
1. Excludes demand loans.
>
FEDERAL RESERVE statistical release
[[[[[
* • f*AL
S U R V E Y OF T E R M S OF
TABLE
BANK
LENDING
MADE DURING
FEBRUARY
2-6,
1987
1
COMMERCIAL
AND
INDUSTRIAL
LOANS
(OTHER
THAN CONSTRUCTION
A N D L A N D D E V E L O P M E N T ) M A D E BY ALL
LOAN
AMOUNT
OF LOANS
LOAN CHARACTERISTICS
($1,000)
I
1. ALL
RATE
COMMERCIAL
(PERCENT)
A V E R A G E I WEIGHTED WEIGHTEDI
I
SIZE
I AVERAGE
AVERAGE (STANDARD)
($1,000)|MATURITY EFFECTIVE I ERROR
|
3/1
4/1
I
INTERNQUARTILE
RANGE
5/
BANKS
1/
P E R C E N T A G E OF A M O U N T
OF L O A N S M A D E U N D E R :
j
I
I M O S T |
I COMMON I
I BASE
I
!__!!!
COMMITMENT!PARTICIPATION!PRATEN°!
DAYS
C 8 I LOANS
OVERNIGHT
7/
15,399,940
7,055
ONE MONTH A N D UNDER
(EXCL O V E R N I G H T )
-FIXED RATE
-FLOATING RATE
7,737,558
5,981,071
1,756,488
487
725
230
OVER ONE MONTH A N D
UNDER A YEAR
-FIXED RATE
-FLOATING RATE
9,459,714
3,900,457
5,559,258
89
114
DEMAND
8/
-FIXED RATE
-FLOATING RATE
5,431,743
409,577
5,022,166
151
205
148
TOTAL UNDER ONE Y E A R
-FIXED RATE
BY S I Z E ( $ 1 , 0 0 0 )
1-24
25-49
50-99
100-499
500-999
1000+
-FLOATING RATE
BY S I Z E ( $ 1 , 0 0 0 )
1-24
25-49
50-99
100-499
500-999
1000+
6.86
19
7.38
7.14
18
22
102
151
113
178
FOR
FED FUNDS
0.14
6.81-7.60
6.76-7.31
7.04-8.86
72.8
71.0
78.8
8.5
9.9
4.0
DOMESTIC
DOMESTIC
PRIME
0.19
7.11-8.78
6.91-7.87
7.71-8.84
73.1
65.8
78.2
10.1
6.0
7.7
PRIME
DOMESTIC
PRIME
7.71-8.84
6.54-7.74
7.71-8.84
80.8
4.0
6.3
3.8
PRIME
OTHER
PRIME
0.15
8.18
0.12
0.28
0.23
0.11
83.7
80.6
260
49
7.46
0.14
6.70-7.79
79.2
6.7
FED FUNDS
25,481,985
328,649
171,646
150,041
426,753
290,051
24,114,846
453
23
7.07
0.15
0.24
79.0
24.2
18.0
25.6
43.8
66.3
81.3
7.7
0.1
8,365
6.58-7.25
9.93-12.39
8.88-12.38
8.84-11.02
7.71-9.85
7.05-8.06
6.57-7.17
FED FUNDS
OTHER
PRIME
PRIME
PRIME
PRIME
FED FUNDS
12,546,972
439,620
489,566
788,340
2,431,898
1,081,056
7,316,492
139
9
34
67
190
631
3,289
79.6
67.3
69.0
74.9
78.0
8
112
32
63
11.20
117
133
90
182
661
66
19
162
151
149
127
0.12
0.05
0.13
0.12
9.73
9.45
9.05
8.71
8.36
7.85
0.07
0.07
0.04
0.15
7.71-8.84
8.84-10.43
8 66-9 92
8.30-9.65
7.78-9.38
7.76-8.84
7.04-8.33
0 .18
0.11
54
8.50
1,735,926
159,809
193,759
46,475
1,335,882
188
20
226
634
81,286
51
56
41
61
51
8.41
11.04
10.04
9.02
7.84
5,418,876
269,359
529,155
356,616
4,263,747
393
27
211
663
5,,862
55
46
53
56
55
8.53
9.81
8.99
8.55
8.39
1 LOAN
X
9,614
5,966,654
4,205
17
3,901,031
1,405,330
25,635,502
22,475,849
3,159,654
613
948
2,383
3,662
684
126
*
25
18
105
1,681,276
818,875
862,401
906
792
1,050
MONTHS
54
51
56
2.9
9.0
7.9
4.8
3.4
1.5
2.0
2.8
80.8
81.9
5.7
5.9
PRIME
PRIME
PRIME
PRIME
PRIME
PRIME
PRIME
7 . 7 1 - 9 .04
78.7
7.3
PRIME
.55
.37
,30
.46
.68
6 . 8 7 - 9 .04
9 . 9 2 - 1 1 .85
9 . 3 8 - 1 0 ..47
7 . 7 1 - 1 0 ,.47
6 . 7 6 - 8 ..44
73.4
6.6
12.8
52.9
91.0
2.0
0.8
0.8
3.3
2.3
FED FUNDS
PRIME
OTHER
OTHER
FED FUNDS
0 .15
0,.16
0,.14
0,.11
0,.12
7 . 7 6 - 9 .04
8 . 8 4 - 1 1 ..02
8 . 1 6 - 9 ..38
7 . 7 6 - 9 ,.11
7 . 7 1 - 9 ..04
80.3
46.3
64.0
78.4
84.7
9.0
2.4
6.2
8.6
9.8
PRIME
PRIME
PRIME
PRIME
PRIME
7..1
0
0
0
0
0
RATE (PERCENT)
1 EFFECTIVE
14,362,487
2.1
0.2
|
310
DAYS
0.23
0.24
8.26
136
153
144
MONTHS
0.20
10.56
9.76
8.76
7.69
6.94
7,154,803
11/
FOOTNOTES
6.2
38,028,957
j
LAST PAGE
85.6
8.09
7.75
8.33
|
TOTAL O N E YEAR A N D OVER
-FIXED RATE
-FLOATING RATE
6.49-7.04
0.06
0.21
7.10
j
1
LOANS MADE BELOW PRIME
OVERNIGHT
7/
ONE MONTH A N D UNDER
(EXCL O V E R N I G H T )
OVER O N E MONTH A N D
UNDER A YEAR
DEMAND
8/
TOTAL UNDER ONE YEAR
-FIXED RATE
-FLOATING RATE
0.26
8.21
8.26
j
TOTAL ONE YEAR A N D OVER
-FIXED RATE
BY S I Z E ( $ 1 , 0 0 0 )
1-99
100-499
500-999
1000+
-FLOATING RATE
BY S I Z E ( $ 1 , 0 0 0 )
1-99
100-499
500-999
1000+
SEE
.
FOR I M M E D I A T E R E L E A S E
M A R C H 30, 1 9 8 7
E.2
2.
R £ ^
3 /
I NOMINAL
j
"
|
I
j
RATE
10/
1
|
6.53
7 .51
87.2
6 .96
6.74
7 .51
73.7
10..6
6
6
6
6
6
.99
.83
.84
.82
.96
6.81
6.63
6.63
6.61
6.75
7
7
7
7
7
.60
.55
.52
.51
.61
79.2
72.9
82.1
81.7
84.7
12..3
5. 4
8..6
8.9
6 .7
7 .09
7 .00
7..18
6.91
6.86
6.96
7.70
7 .67
7 .73
90.4
91.1
89.7
5 .1
3 .8
6 .3
6 .75
j
S U R V E Y OF T E R M S OF
TABLE 2
COMMERCIAL
BANK
LENDING MADE DURING
AND INDUSTRIAL
LOANS
LOAN C H A R A C T E R I S T I C S
1. ALL
F E B R U A R Y 2-6,' 1987
( O T H E R T H A N C O N S T R U C T I O N A N D L A N D D E V E L O P M E N T ) M A D E BY L A R G E B A N K S
AMOUNT
OF L O A N S
($1,000)
1
1
1/
I
P E R C E N T A G E OF A M O U N T
I MOST
I
I
OF L O A N S M A D E U N D E R :
I COMMON 1
I
1 BASE
1
I
I
1 PRICING!
I COMMITMENT I PARTICIPATION I RATE
I
1
LOAN RATE (PERCENT)
1
INTERAVERAGE
WEIGHTED! WEIGHTED!
1
QUARTILE
SIZE
AVERAGE! AVERAGE I STANDARD I
($1,000) MATURITY!EFFECTIVE! ERROR
RANGE
I
5/
2/1
3/1
4/1
1
1
1
DAYS
I
1
!
6
' i
C & I LOANS
11, 140, 547
11,,322
X
6.94
0 .05
6 . 5 4 - 7 .14
87.9
7.3
FED FUNDS
ONE MONTH A N D UNDER
(EXCL O V E R N I G H T )
-FIXED RATE
-FLOATING RATE
5, 361, 941
4, 384, 3 7 2
977, 569
2,,606
4/,168
972
20
19
23
7.25
7.13
7 .74
0 .04
0 .04
0 .11
6 . 8 2 - 7 .56
6 . 8 1 - 7 .42
7 . 0 1 - 8 .30
76.8
73.4
92.2
8.2
8.9
4.8
DOMESTIC
DOMESTIC
PRIME
OVER ONE MONTH A N D
UNDER A YEAR
-FIXED RATE
-FLOATING RATE
5, 390, 766
2, 692, 047
2, 698, 7 2 0
557
1,,869
328
138
106
170
7.57
7.20
7.94
0 .13
0 .11
0 .16
6 . 9 1 - 8 .14
6 . 8 4 - 7 .34
7 . 1 9 - 8 .57
79.6
75.4
83.8
9.4
13.0
5.8
PRIME
DOMESTIC
PRIME
DEMAND
8/
-FIXED RATE
-FLOATING RATE
2, 542, 1 3 4
148, 906
2, 393, 2 2 8
296
709
286
*
*
X
7.95
6.67
8.03
0 .20
0 .34
0..20
6 . 9 6 - 8 .84
6 . 6 3 - 8 .30
7 . 2 3 - 8 .84
76.6
82.6
76.3
2.2
0.9
2.3
OVERNIGHT
7/
TOTAL UNDER ONE YEAR
-FIXED RATE
BY S I Z E ( $ 1 , 0 0 0 )
1-24
25-49
50-99
100-499
500-999
1000+
-FLOATING RATE
BY S I Z E ( $ 1 , 0 0 0 )
1-24
25-49
50-99
100-499
500-999
1000+
TOTAL ONE YEAR AND OVER
-FIXED RATE
BY S I Z E ( $ 1 , 0 0 0 )
1-99
100-499
500-999
1000+
-FLOATING RATE
BY S I Z E ( $ 1 , 0 0 0 )
1-99
100-499
500-999
1000+
24, 435, 3 8 8
1,,147
39
7.25
0 ,04
6.71-7.67
82,5
7.4
FED FUNDS
18, 2 5 1 , 6 6 8
7, 7 5 3
7, 3 1 2
13, 6 5 1
101, 1 9 4
142,968
17, 978, 7 9 0
4, 9 7 3
10
33
63
237
696
91 8 7 2
21
92
82
75
48
56
21
7.03
10.00
9.24
9.11
8.08
7 .74
7.01
0. 04
0..23
0. 15
0. 38
0. 16
0. 14
0. 04
6 . 6 3 - 7 .25
8 . 8 4 - 1 0 .70
8 . 7 8 - 9 .89
8 . 3 0 - 9 .86
7 . 1 1 - 8 .81
7 . 1 0 - 8 ,.24
6 . 6 3 - 7 .25
82.4
23.7
33.3
35.8
74.3
81.3
82.6
8.5
0.0
1.6
0.0
2.5
3.7
8.6
FED FUNDS
PRIME
PRIME
PRIME
PRIME
PRIME
FED F U N D S
6, 183, 7 2 0
71, 4 0 0
92, 170
189, 1 3 3
8 0 3 , 507
432, 844
4, 5 9 4 , 6 6 6
351
11
34
67
203
645
4, 3 9 4
127
177
180
191
154
132
119
7.91
9.29
9.05
8.91
8.58
8.35
7.67
0. 13
0. 17
0. 13
0. 10
0. 08
0. 06
0. 17
7 . 0 4 - 8 .57
8 . 3 0 - 9 .96
8 . 3 0 - 9 .65
8 . 3 0 - 9 .38
7 . 7 6 - 9 .11
7.76-8, 84
6 . 9 1 - 8 ,.30
82.5
80.6
80.7
81.0
84.6
83.7
82.2
4.2
0.1
0.6
1.0
2.0
4.5
4.8
PRIME
PRIME
PRIME
PRIME
PRIME
PRIME
PRIME
5, 209, 7 3 1
1,,600
53
8.26
0 .17
7 . 5 2 - 9 .04
88.6
7.5
PRIME
1, 132, 070
7, 5 8 2
18, 4 4 5
25, 191
1, 080, 8 5 2
2, ,275
26
219
622
12,,747
52
44
50
62
52
7.86
12.37
9.66
8.42
7.78
1..07
0 .52
0 .51
0,.64
1 .35
6.76-8
9.92-12
7.76-10
7.50-9
6.76-8
.44
.96
.47
.92
.44
92.4
37.8
70.9
62.9
93.9
0.3
0.3
8.1
6.2
0.0
FED F U N D S
OTHER
PRIME
PRIME
FED FUNDS
4, 077, 6 6 1
38, 9 2 3
185, 7 0 5
215, 8 7 0
3, 6 3 7 , 1 6 2
1,,478
34
230
696
7j
,179
53
38
47
50
54
8.37
9.17
8.69
8.47
8.34
0..20
0 .14
0 .14
0 .10
0 .23
7.71-9
8.30-9
7.76-9
7.76-9
7.71-9
.04
.65
.31
.04
.04
87.5
70.1
85.3
91.4
87.6
9.5
4.0
7.9
7.7
9.7
PRIME
PRIME
PRIME
PRIME
PRIME
|
i
—
MONTHS
m
r
j
I LOAk RATE (fttcEkt)
E L E C T I V E I NOMINAL
2. L O A N S M A D E B E L O W P R I M E 11/
OVERNIGHT
7/
ONE MONTH AND UNDER
CEXCL O V E R N I G H T )
OVER ONE MONTH A N D
UNDER A YEAR
DEMAND
8/
TOTAL UNDER ONE YEAR
-FIXED RATE
-FLOATING RATE
TOTAL ONE YEAR A N D OVER
-FIXED RATE
-FLOATING RATE
S E E L A S T P A G E FOR
FOOTNOTES
PRIME
OTHER
PRIME
!
!LI
!1_
PRIME
RATE
10/
10,140,915
12,737
X
6.80
6.58
7.50
9 0 .5
7.9
4,324,907
5,794
18
7.00
6.78
7.50
7 5 .0
9.9
>
3,143,949
815,327
18,425,097
16,276,719
2,148,378
5,708
2,226
7,491
8,746
3,589
123
X
27
19
114
6.97
6.70
6.87
6.87
6.89
6.78
6.50
6.66
6.65
6.69
7.51
7.53
7.50
7.50
7.52
79,.5
57, 3
83,.5
83 6
82 5
11.1
0.0
8.6
9.2
4.2
1
1,317,237
609,772
707,465
5,243
11,239
3,591
6.89
6.79
6.97
6.73
6.69
6.76
7.52
7.50
7.53
100.0
100.0
100.0
7.0
I MONTHS I
L
J
3 T
59
3.8
0.0
SURVEY OF TERMS OF BANK LENDING M A D E DURING FEBRUARY 2-6, 1987
TABLE 3
COMMERCIAL AND INDUSTRIAL
LOANS (OTHER THAN CONSTRUCTION AND LAND DEVELOPMENT) M A D E BY OTHER BANKS
I
LOAN CHARACTERISTICS
AMOUNT
OF LOANS
($1,000)
7/
LOAN RATE (PERCENT)
A V ERAGE I WEIGHTED! WEIGHTED!
T
SIZE
| AVERAGE! AVERAGE !STANDARD!
($1, 090)1 MATURITY I EFFECTIVE! ERROR
j
I
2/I
3/1
4/|
L
L
1. ALL C & I LOANS
OVERNIGHT
I
DAYS
'
1/
PERCENTAGE OF AMOUNT
I MOST
I
OF LOANS M A D E UNDER:
I COMMON I
,
I BASE
I
I
I PRICING!
I COMMITMENT I PARTICIPATION 1 RATE
I
I
1 6 / f
J
I
INTERQUARTILE
RANGE
5/
'
4 ,259 ,393
3 ,553
X
6 .66
0 .54
6.38-6 .88
79 .6
3 .2
ONE MONTH AND UNDER
(EXCL O V E R N I G H T )
-FIXED RATE
-FLOATING RATE
2 ,375 ,618
1 ,596 ,699
778 ,919
172
222
117
18
17
21
7 .69
7 .16
8 .78
0 .23
0 .12
0 .31
6.71-8 .07
6.63-7 .13
7.18-10 .48
63 .8
64 .6
62 .0
9 .3
12 .4
3 .0
OVER ONE MONTH AND
UNDER A YEAR
-FIXED RATE
-FLOATING RATE
4 ,068 ,948
1 ,208 ,410
2 ,860 ,538
49
28
71
168
129
185
8 .79
8 .99
8 .71
0 .08
0 .19
0 .11
7.75-9 .38
7.19-10 .79
7.79-9 .38
64 .5
44 .4
73 .0
5 .5
3 .8
6 .2
PRIME
OTHER
PRIME
DEMAND
8/
-FIXED RATE
-FLOATING R A T E
2 r 889,609
260 ,671
2 ,628 ,938
106
145
103
X
X
X
8 .38
7 .35
8 .48
0 .11
0 .34
0 .07
7.76-8 .87
6.54-7 .34
7.76-8 .87
84 .5
84 .4
84 .5
5 .5
9 .4
5 .2
PRIME
OTHER
PRIME
13,, 593,568
109
68
7 .84
0 .19
6.66-8 .81
73 .3
5 .5
7,,230 ,317
320 ,895
164 ,334
136,,390
325,,559
147,,083
6,,136,,056
138
8
32
63
170
630
5,,780
27
112
118
140
102
77
13
7 .18
11 .23
10 .62
9 .82
8 .97
7 .65
6 .71
0 .27
0 .26
0,.13
0. 22
0..38
0. 21
0.,07
6, 363,,252
368,,219
397,,396
599,,207
1, 628,, 391
648, 212
2, 721, 826
88
9
34
67
183
621
2, 308
146
149
137
153
150
159
140
8 60
9 .81
9 54
9. 10
8. 77
8. 37
8. 14
0. 12
0. 07
0. 14
0. 11
0. 10
0. 06
0. 20
TOTAL UNDER ONE YEAR
-FIXED RATE
BY SIZE ($1,000)
1-24
25-49
50-99
100-499
500-999
1000+
-FLOATING RATE
BY SIZE ($1,000)
1-24
25-49
50-99
100-499
500-999
1000+
|
MONTHS
TOTAL ONE YEAR AND OVER
-FIXED RATE
BY SIZE ($1,000)
1-99
100-499
500-999
1000+
-FLOATING RATE
BY SIZE ($1,000)
1-99
100-499
500-999
1000+
SEE LAST PAGE FOR FOOTNOTES
70
24
17
24
34
51
77
PRIME
3
2
.3
.6
.3
.8
.5
5 .6
0 .1
2 .1
0 .2
3 .1
14 .3
6 .0
FED FUNDS
OTHER
PRIME
PRIME
PRIME
PRIME
FED FUNDS
7.76-9 .38
8.84-10 .47
8.77-9 .95
8.30-9 .80
7.79-9. 38
7.76-8. 84
7.34-8. 78
76. 8
64..7
66 .3
73. 0
74. 8
79. 0
81. 5
5 ,3
4 .0
1 ,7
2 4
3 1
6 .5
7. 7
PRIME
PRIME
PRIME
PRIME
PRIME
PRIME
PRIME
j
9. 14
0. 20
8.20-9. 92
52. 1
6. 8
PRIME
69
19
226
649
3, 337
48
56
40
60
47
9. 44
10. 97
10. 07
9. 73
8. 07
0. 45
0. 14
0. 35
0. 66
0. 61
7.65-10. 47
9.92-11. 57
9.38-10. 47
9.31-10. 47
6.65-9. 04
37. 9
5. 0
6 .7
41. 1
78. 6
5. 4
0. 8
0. 0
0. 0
12. 2
OTHER
PRIME
OTHER
OTHER
OTHER
121
26
202
619
2, 838
58
47
56
65
62
9. 01
9. 92
9. 16
8. 67
8. 66
0. 12
0. 19
0. 22
0. 19
0. 05
8.24-9. 38
8.84-11. 02
8.30-9. 65
8.11-9. 31
8.17-9. 38
58. 5
42. 3
52. 4
58. 4
67. 7
7. 5
2. 1
5. 2
10. 1
10. 1
PRIME
PRIME
PRIME
PRIME
PRIME
98
603, 856
152, 228
175, 314
21, 284
255, 030
1, 341, 216
230, 436
343, 450
140, 746
626, 585
DAYS
I LOAN RATE (PERCENT)
1
1 EFFECTIVE I NOMINAL
9/
s/
1
!
PRIME
RATE
10/
I
I
I
1
4,,221, 573
6,,051
X
6 .63
6.42
7.53
79 .4
5.0
1 ,,641, 747
2,,441
16
6 .84
6.62
7.53
70 .4
12.4
757, 081
590, 004
7,,210, 405
,199,
130
6,
I, ,011, 275
130
529
869
1 ,,450
251
142
X
21
14
85
7
7
6
6
7
.10
.01
.76
.70
.11
6.91
6.80
6.55
6.49
6.90
8.01
7.57
7.58
7.54
7.83
78 .2
94 .3
78..5
76 .7
89 .4
17.2
12.9
8.6
8.1
11.9
364, 039
209, 103
154, 936
227
213
248
7 .85
7 .62
8 .16
7.58
7.37
7.86
8.38
8.18
8.64
55 .5
65 .1
42 .5
9.8
14.9
2.8
j
TOTAL ONE YEAR A N D OVER
- F I X E D RATE
-FLOATING RATE
.18
.40
.38
.02
.06
.76
.95
PRIME
DOMESTIC
PRIME
55
1, 945, 072
I
1
2. LOANS M A D E BELOW PRIME 11/
OVERNIGHT
7/
ONE MONTH AND UNDER
(EXCL O V E R N I G H T )
OVER ONE MONTH AND
UNDER A YEAR
DEMAND
8/
TOTAL UNDER ONE YEAR
- F I X E D RATE
-FLOATING RATE
6.45-7
10.00-12
8.97-12
8.87-11
7.71-10
6.93-7
6.45-6
FED FUNDS
MONTHS
48
51
43
I
S U R V E Y OF T E R M S O F B A N K L E N D I N G M A D E D U R I N G F E B R U A R Y 2 - 6 , 1987
TABLE 4
C O N S T R U C T I O N A N D L A N D D E V E L O P M E N T L O A N S ( S E C U R E D A N D U N S E C U R E D BY REAL
ESTATE)
LOAN R A T E ( P E R C E N T )
1 AMOUNT
I OF L O A N S
I ($1,000)
AN C H A R A C T E R I S T I C S
!
ALL
BANKS
1/
FIXED RATE
BY S I Z E ( $ 1 , 0 0 0 )
1-24
25-49
50-99
100-499
500+
FLOATING RATE
BY S I Z E ( * 1 , 0 0 0 )
1-24
25-49
50-99
100-499
500+
BY T Y P E OF C O N S T R U C T I O N
SINGLE FAMILY
MULTIFAMILY
NONRESIDENTIAL
2. L A R G E B A N K S
FIXED RATE
BY S I Z E ( $ 1 , 0 0 0 )
1-24
25-49
50-99
100-499
500+
FLOATING RATE
BY S I Z E ( $ 1 , 0 0 0 )
1-24
25-49
50-99
100-499
500+
"lilir
3. O T H E R B A N K S
| A V E R A G E I1 A V E R A G E |
1 WEIGHTED |
|
I AVERAGE | STANDARD
SIZE
II M A T U R I T Y |
| ( $ 1 , 0 0 0 ) II ( M O N T H S ) |
ERROR
1 EFFECTIVE!
4/
3/
!
FIXED RATE
BY S I Z E ( $ 1 , 0 0 0 )
1-24
25-49
50-99
100-499
500+
FLOATING RATE
BY S I Z E ( * 1 , 0 0 0 )
1-24
25-49
50-99
100-499
500+
BY T Y P E OF C O N S T R U C T I O N
SINGLE FAMILY
MULTIFAMILY
NONRESIDENTIAL
!
"1
7 . 7 7 - 9 .11
86.9
17.5
.37
.42
.59
.45
.50
.94
0,.40
0..33
0..37
0..49
0..40
0. 31
7.55-8.60
1 0 . 5 2 - 1 2 .18
8 . 8 4 - 9 .93
9 . 9 6 - 1 3 .80
1 1 . 0 2 - 1 3 .24
7 . 5 5 - 8 .37
89.1
56.8
13.4
81.9
13.5
97.3
11.1
.84
.56
.81
.17
.23
.62
0..16
0..08
0,.31
0,.11
0..12
0..13
8.30-9
9.11-9
9.38-11
8.84-9
8.84-9
8.03-8
.38
.96
.56
.92
.92
.85
85.2
71.3
59.4
77 .8
89.5
10.02
8.87
8.42
0.26
0.15
0.29
9.11-11.02
8.70-8.84
7.76-8.84
68.5
94.4
88.8
0.23
7.55-8.70
7.87
10.31
X
X
X
7.87
0.45
0.60
X
X
X
0.45
7.55-8..20
9 . 9 2 - 1 0 .47
X
X
X
7 . 5 5 - 8 .20
97.1
88.3
X
X
X
97.1
12.7
0.0
x
*
X
12.7
8.36
9.21
9.27
8.92
8.87
8.32
0.11
0.09
0.16
0.21
0.16
0.12
7 . 7 7 - 8 .84
8.84-9..38
8 . 8 4 - 9 .92
8 . 8 4 - 9 .38
8 . 5 7 - 9 .11
7 . 7 7 - 8 .84
89.1
94.8
94.3
93.2
91.9
88.8
20.9
4.9
3.0
4.2
8.70
8.79
0.23
22.0
0.23
7.76-9.38
11.02-8.70
7.55-8.57
86.1
0.18
213
9
1,460,309
45,221
10,969
17,399
105,388
1,281,332
249
10
30
75
265
10,170
7
6
9
9
23
5
8
11
9
12
11
7
1,930,359
48,236
71,617
72,869
287,233
1,450,403
192
9
37
69
196
3,541
11
9
7
10
12
11
8
9
10
9
9
8
389,673
253,734
2,747,261
42
277
491
13
7
9
2,203,753
1,879
1,222,669
775
X
X
X
1,219,021
6,218
10
X
X
X
13,544
3
12
X
X
X
3
981,085
3,441
3,487
7,729
59,380
907,049
1,005
10
33
73
230
5,843
13
12
11
10
14
13
i
'
P E R C E N T A G E OF A M O U N T
OF LOANS M A D E UNDER:
1
I
PARTICIPATION
I C
iO M M I T M E N T
1
0. 26
8 .64
3,390,669
,.«a tia
1/
!
11
INTERQUARTILE
RANGE
5/
8.00
* FEWER T H A N 10 S A M P L E L O A N S .
e
3.4
0.0
1.3
12.4
22.4
0.4
0.8
3.0
2.7
29.1
2.5
5.0
20.8
16.4
98.3
93.1
2.8
22.4
4.6
17.6
1,186,915
81
11
9.65
0.23
8.84-9.92
74.6
19.7
237,641
44,446
10,617
16,871
103,395
62,311
42
10
29
75
265
1,731
21
6
9
8
23
31
10.94
11.44
9.60
12.51
11.55
9.37
0.38
0.41
0.54
0.67
0.52
0.37
9.92-12.13
10.75-12.18
8.84-9.93
9.96-13.80
11.02-13.24
9.18-10.34
48.4
56.3
10.5
82.3
2.6
0.8
949,274
44,796
68,130
65,141
227,854
543,355
105
9
38
68
189
2,136
9
9
7
10
12
8
9.32
9.59
10.89
9.20
9.32
9.12
0.13
0.07
0.52
0.16
8.84-9.42
9.20-9.96
9.39-13.24
8.84-9.92
8.84-9.92
8.84-9.39
355,442
36,591
794,882
39
52
160
13
13
11
10.15
9.36
9.44
0.27
0.17
0.30
9.38-11.02
9.11-9.92
8.84-9.39
0.06
0.19
M O T E : 5 3 . 8 P E R C E N T O F C O N S T R U C T I O N A N D L A N D D E V E L O P M E N T L O A N S H E R E P R I C E D R E L A T I V E TO T H E P R I M E R A T E
S E E LAST P A G E FOR F O O T N O T E S
62.0
0.8
2.3
0.0
12.2
100.0
0.7
7.7
81.2
23.9
69.5
57.6
58.3
74.1
90.8
66.8
71.4
78.3
0.1
0.7
2.8
2.7
40.2
0.6
7.4
28.7
Table 5
LOANS TO FARMERS
Size class of loan# (thousands)
all sizes
ALL BANKS
Amount of loans (thousands)
Number of loans
Weighted average maturity (months)2
Weighted average interest rate (%>3
Standard error4
Interquartile range5
By purpose of loan:
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Farm real estate
Other
Weighted average interest rate (%)3
Standard error4
Interquartile range9
By purpose of loan:
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Farm real estate
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
Farm real estate
Other
$10-24
$100-249
$50-99
$25-48
$250 and over
$1,046,760
4J,767
10.9
$106,737
28,010
7.9
$135,565
9,075
9.4
$97,908
2,871
7.1
$126,118
1,912
14.4
$227,717
1,539
15.5
$352,714
360
8.5
10.20
.56
8.51-11.63
11.59
.58
10.51-12.43
11.18
.67
10.25-12.15
11.06
.79
10.25-11.90
10.80
.69
9.58-11.80
10.78
.82
9.96-11.83
8.59
.80
9.00
9.72
•
10.74
10.97
7.76-
8 . 86
10.62
9.86
10.42
11.20
10.72
8.99
11.63
11.21
11.61
11.45
11.67
11.77
11.37
1 1 . 17
11.28
1 0 . 72
10.79
10.79
11.39
10.46
11.17
11.27
10.02
10.27
8.86
8.25
65.1
47.4
43.5
30.5
42.5
32.1
42.5
31.5
57.4
40.0
55.9
34.3
95.2
73.8
13.1
7.2
55.0
3.4
4.4
16.9
12.4
7.3
60.3
9. 1
1.8
9.1
17.0
10.2
51.6
3.1
7.5
10.6
26.2
4.4
54.6
3.7
9.9
12.9
$381,624
3,825
8.9
$6,706
1,740
8.8
$11,464
784
10.7
$14,757
421
9.3
$23,641
347
8. 1
8.47
.52
9.00
10.07
.53
9.30-10.43
9.39
.64
9.92
9.22
.75
9.84
9 . 30
.60
9.84
8.96
8.02
8.37
9.73
9.00
8.44
9.77
9.60
9.78
12.08
10-73
9.91
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
Farm real estate
Other
LARGE BANKS"
Amount of loans (thousands)
Number of loans
Weighted average maturity (months)2
$1-9
7.76-
8.77-
9.05
e
9.51
10.06
*
8.51-
8.79
$
9.47
9.58
$
#
$
$
*
50.2
67.6
$
$
*
#
#
9.32
7.3
*
$
9 . 19
*
13.9
14.3
8.77-
$
*
*
44.6
*
8.86
10.93
*
*
*
*
*
$
30.9
7.7
$45,228
325
10. 1
8.52-
9.00
.78
9.50
9.03
$
9.21
*
$
$279,829
208
8.6
7.76-
8 . 19
.21
8.30
8 . 86
$
8.04
$
$
9.44
9.17
9.49
8.86
8.25
-
93.7
78.5
78.2
65.2
91.4
78.1
93.4
76.4
91. 1
86.3
96.4
83.5
93.9
77.5
12.4
9.7
38.1
1.5
1.7
36.5
11. 1
3.9
56. 1
10.9
2.9
15. 1
26.8
•
39.4
3.1
21.7
18.7
22.8
9.2
$665,136
39,942
11.5
$
*
*
28. 1
42.7
6.6
41.6
23.8
16.9
28.3
38.6
$100,032
26,269
7.8
$124,102
8,291
9.3
$83,151
2,450
6.8
$102,477
1,565
15.2
$182,489
1,214
16.5
1 1.20
.21
10.51-11.95
11.69
.23
10.78-12.47
11.34
. 18
10.38-12.31
11.39
.21
10.59-12.05
1 1 . 15
.33
1 0 . 2 b - 11. 8 8
11.22
.21
11.02-11.83
11.50
11.64
11.11
11.47
11.00
11.09
11.74
11.26
11.73
11.40
11.78
11.99
11.73
11.22
11.40
11.76
48.6
29.5
41. 1
28. 1
37.9
27.8
$
$
$
#
$
*
38.7
$
$
39.0
11
OTHER BANKS
Amount of loans (thousands)
Number of loans
Weighted average maturity (months)2
3
Weighted average interest rate (%)
Standard error4
Interquartile range5
By purpose of loan:
Feeder livestock
Other livestock
Other current operating expenses
Farm machinery and equipment
Farm real estate
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
Farm real estate
Other
See last page for notes to tables
•Fewer than 10 sample loans
13.5
5.8
64.6
4.5
6.0
5.0
12.5
7.5
60.6
9.0
1.7
8.7
$
10.83
11.10
lb. 1
10.9
52.8
$
11.40
11.07
#
$
11.08
$
$
$
*
*
*
$
33.5
23.5
27.0
$
56.8
$
7.8
9.3
$
*
#
$
*
49.6
29.4
$
$
45.3
45.9
22.1
$
$
77.4
•
*
$
$
$
*
$
*
*
$
#
$
•
#
$
$
$
*
*
$
#
$
#
$
#
$
NOTES
The survey of terms of bank lending to business collects data on gross loan extensions
made during the first full business week in the mid- month of each quarter by a sample
of 340 commercial banks of all sizes. A subsample of 250 banks also report loans to
farmers. The sample data are blown up to estimate the lending terms at all insured
commercial banks during that week. The estimated terms of bank lending are not
intended for use in collecting the terms of loans extended over the entire quarter
or residing in the portfolios of those banks. Construction and land development
loans include both unsecured loans and loans secured by real estate. Thus, some of
the construction and land development loans would be reported on the statement of
condition as reals estate loans and the remainder as business loans. Mortgage loans,
purchased loans, foreign loans, and loans of less than $1,000 are excluded from the
survey.
1.
As of December 31, 1985, assets of most of the large banks were at least $ 5.5
billion. For all insured banks, total assets averaged $ 165 million.
2.
Average maturities are weighted by loan size and exclude demand loans.
3.
Effective (compounded) annual interest rates are calculated from the stated rate
and other terms of the loan and weighted by loan size.
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.
6.
The most common base rate is that rate used to price the largest dollar volume
of loans. Base pricing rates include the prime rate (sometimes referred to as a
bank's "basic" or "reference" rate); the federal funds rate; domestic money
market rates other than the federal funds rate; foreign money market rates; and
other base rates not included in the foregoing classifications;
7.
Overnight loans mature on the business day after they are made.
8.
Demand loans have no stated date of maturity.
9.
Nominal (not compounded) annual interest rates are calculated from survey data
on the stated rate and other terms of the loan and weighted by loan size.
10. The prime rate reported by each bank is weighted by the volume of loans extended
and then averaged.
11. The proportion of loans made at rates below prime may vary substantially from
the proportion of such loans outstanding in banks' portfolios.
12. Among banks reporting loans to farmers (Table 5), most "large banks" (survey
strata 1 to 3) had over $ 600 million in total assets, and most "other banks"
(survey strata 4 to 6) had total assets below $ 600 million.
@FedFRASER