Full text of E.2 Survey of Terms of Business Lending : May 1971
The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
REVISION -OfCOVf- VA FEDERAL RESERVE s t a t i s t i c a l >' r e l e a s e • : " ' :': • May 28, 1971 X • REVISlg^KOF QUARTERLY SURVEY OF INTEREST RATES ON BUSINESS LOANS I ' ' .... / ' The Quarterly Survey of Interest Rates Charged by Banks on Business. Loans has been revised beginning with the survey period for February 1971: The revisioh incorporates a number of technical changes in coverage, sampling J and, interest rate calculations. These include elimination of accounts receivable loans from the survey, shortening the.sample period for respondent banks in most districts, arid calculation of effective annual interest rate? -on [ discounted loans using a revised formula based on annual rather ttian quarterly compounding of interest.•, As a result of the above changes, new weights derived from this Survey have been used to calculate the weighted average rates.^ To determine the impact of the revision, separate" information„on accounts receivable loans were collected in the February survey, and interest rate computations were made on the former basis for comparison with the revised, series. The net effect of changes made in the Survey revision was to reduce the average rate for short-term business loans for 35 centers by .17 percentage point, to 6.58 per cent on the revised basis, compared to 6.75 per cent on the former basis. The major factor lowering the average interest rate in most areas was the elimination of accounts receivable from the sample of. loans reported, which accounted for .13 percentage point of the reduction. The change in weights also reduced the average rate, by .08 percentage point, and the shift to annual compounding of interest increased the average rate by .04 percentage point. Regional changes in rates ranged from a reduction of .01 percentage point for New York City to a reduction of .38 percentage point in Other Northeast. centers. Beginning with,the February survey, the E.2 release will be expandedto provide interest rate data.for term loans and revolving credit as well as for short-term business- loans. A description of the revised survey will be published in the June Federal Reserve Bulletin. • Table 1 Bank Rates on Short-term Business Loans February 1971 Interest rate (per cent per annum) 6.00 6.01 6.50 6.51 7.00 7.01 7.50 7.51 8.00 than 6.00 - 6.49 . - 6.99 - 7.49 - 7.99 8.00 Total per cent Total - Dollar amount* Total - Number of loans Percentage distribution of do)la: $1,000-$9,999 .$10, 000-$99, 999 $10(^,000-$499, 999 Revised Revised Eormer Revised Former .Series Series Revised Seriep 1.4 42.4 17.4 . 7.7 6.5 5.6 4.5 2.4 . 2.1 2.7 7.4 100.0 , 3,047,996 17,915 1.3 39,9 16.4 7.5 7.5 5.8 3.7 2.6 1.7 3.1 10.3 100.0 3,238,664 20,205 1.2 2.4 ' 2.8 3.5 3. 1 7.5 5.5 7.5 3.1 3.7 2.4 8. 1 7.9 8.7 13.2 42.8 8.6 12.6 45.4 100. 0 100.0 24,776 6,138 -27,452 6,702 0.9 6.3 6. 6 4.6 9.8 10.2 10.5 6.8 7.4 7.2 0.7 19.5 18.6 10.6 9.4 8.1 6.8 6. 1 . 7.6 3t.5 12.3 •11.2 7.1 7.8 4.5 3.7 3.4 100.0 236,576 7,634 281,686 8,452 520,046 2,735 0.7 17.6 16.7 ' 11.4 11.7 7.1 $500,000-$999,999 $1,000.000 and , Revi sed Revised -Series Former Series 0.8 31.7 25.5 10.8 5.2 5.4 5*2 2.9 Series 0.8 100.0 100.0 29.8 24.0 10.4 5.9 5.8 . 4/2 3.7 1.7 3.5 10.3 100.0 585,879 3,077 385,424 626 410,058, 663 6. 6 4.8 3.2 3.9 16.4 • 1.8 3.0 7.6 • 1.7 55.9 . 17.0 • 5.5 5. 1 4.5 2.6 1.0. 1.0 1.8 3.8 100.0 ,881,174 782 WEIGHTED AVERAGE RATES (per cent per annum) 35 centers New York City 7 Other- Northeast 8 North Central 7 Southeast 8 Southwest 4 West Coast 6.75 8.05 8.12 6.26 6.80 6. 65 6.88 6.59 6.63 • 6.27 7.18 6.83 7.04 6.72 6.81 7.76 8.27 7.76 » 8.23 7.83 8.38 7.60 8.34 7.77 8.20 7.89 8.61 7.49 7.65 7.20 7.10 7.75 8.05 7.28 7.40 7.72 7.73 7.22 7.38 ' 8.04 7.77 rly Survey of Interest Rates on Business Loans was revised. June Federal Reaerve Bulleti • - Dollar amounts in 6.58 - thousands. 6.91 -7.02 6.57 6.50 7.11 7.36 7.82 7.05 7.00 7.05 6.82 6.83 7.15 7.30 A description of the 6:. 64 6.35 6.97 6.57 6.69 6. 63 6.77 revised 6.68 6.35 6.18 6.31 6.40 7.13 6.54 6.65 -6.66 6.55 6.25 6.64 6.32 6.91 series is planned 6.41 6.16 6.39 6.70" 6.51 6,26 6.32 for the * " ; E.2 ... - Table 2 B a n k R a t e s on L o n g - t e r m B u s i n e s s Loans — F e b r u a r y 1971 Interest rate (per cent per annum) Less 6.00 6.01 6.50 6.51 7 • 00 7.01 '7.50 7.51 8.00 Over than 6.00 - 6.49 - 6.99 - 7.49 . - 7.99 —i-... - .. 8.OP Total per cent Total - Dollar amount* Percentage distr ibution of dollar amount by si S10,000-$99,999 $100;00Q-$499,999 Revised J F o r m e r Revised Former Revised F o r m e r Revised 0.8 14.0 11.0 32.1 7.0 12.1 6.5 6.1 0.9 4.9 4.4 100.0 0.8 13.9 10.9 31.9 7.0 12-.6 6.4 6.1 0.9 4.9 4.4 100.0 4.0 •6.0 1.3 14.2 4.2 3.3 0.9 12.9 100.0 5.7 4.1 13.5 34,6 1.7 16.9 4.4 8.2 • - < 2.6 8.3 __ 17.4 12.3 .'32.98.1 1.1.3 7.8 5.3 0.7 4.2 100.0 100.0 100.0 : 100.0 17.4 12.3 "" 32.9 8.1 11.3 7.8 5.3 0.7 . 4.2 100.0 10,089 10,231 36,202 36,652 29,131 30,031 170,182 170,182 624 632 114 115 250 253 161 164 42 43 57 57 , thousands . 100.0 0.4 5.9 7.3 4.2 4.2 " 13.9 30.2 35.7 6.7 1.7 14.9 14.4 ' 2.5 4.5 5.0 -;s.5 1.8 9.0 2.7 8.5 17.9 ~ 559 6.81 6.90 6.81 7.09 6.92 7.22 6.99 6,46 6.81 7 i 00 6.96. 7.22 7.04 6.57 0 WEIGHTED .AVERAGE RATES 8.42 8.38 7.08 10.36 7.56 8.37 6.90 7.64 7.01 9.85 7.61 8.10 6.96 7.62 7.58 . 6.75 7.97 7.39 7.62 . 7.84 7.21 (per cent per annum) " 7.55 7.32 , 7.37 6.91 6.98 6.64 6.76 6.82 8.02 7.41 7.61 7.66 7.19 6.80 7.62 7.28 7.59 8.06 7.41 6.78 7.55 7.29 7.44 7.90 7.30 6.56 6.80 7.52 6.50 6.82 6.81 6.56 6.80 7.52 6.50 6.84 6.81 6.83 6.72 6.77 7.00 6.71 6.32 6.83 6.72 6.77 7.00 6.71 6.32 series is planned Beginning February 1 9 7 1 the Quarterly Survey of Interest Rates on Business Loans was revised. * - Dollar amounts in • 551 35 centers Federal Reserve Bulletin. 0.4 7.4 ,4.3 30.6 6.5 14.1 2.5 5.1 1.8 9.1 18.1 247,655 - 1/ 100.0 0.4 0.4 7.8 7.7 4.9 5.0 15.8 15.6 5.8 5.6 12.8 13.7 , 4.6 4.5 16.2 15.9 2.4 2.4 . 8-6 ' , 8.5 20.8 20. 7 100.0', 100.0 $1,000,000 and over Revised Former 246,155 Total - Number of loans New York City 7 Other Northeast 8 North Central 7 Southeast 8 Southwest 4 W e s t Coast 1j5 14.0 37.9 4.0 5.9 2.7 14.0 4.1 3.2 1.8 12.8 0.5 13.8 37.4 '$500,000-5999,999 Revised Former 4 A d e s c r i p t i o n of t h e revised " 1 for the June Table 3 Bank Rates on R e v o l v i n g Credit F e b r u a r y 1971 Interest rote (per cent per annum) Less 6.00 6.01 6.50 6.51 7.00 7.01 7.50 7.51 8.00 Over than $1.000Revised 0. 1 6.00 51.5 • 16.9 13.1 6.7 3.7 1.5 2.8 - 6.49 - 6.99 - 7.49 0.1 - 7.99 1.8 8.00 Total.pet cent • Dollar amount* • Number of loans 1.8 100.0 Former 0.1 48.5 16.-0 12.4 6. 6 4.8 2.1 Revised 0.5 14.2 8.5 2.4 < Business loans- Percentage distribution of OOO fid non fnn n ™ $9.999 $10,000-$99.999 Former Revised Former Series ...Series . -0.5 0,8 10.4 18.0 12.8 6.2 10.6 7.6 2.6 13.3 10.4 9.5 10.0 8.6 1.1 2.1 2.9 8.4 7.» 1.6 2.5 3.8 33.6 16.7 4.6 24.7 28.7 14.4 100.0 10.2 6.7 11.9 2.7 5.9 22.9 100.0 100.0 LOO. 0 100.0 3.3 , 1,156,684 1,228,033 1.334 •1.72n 825 198 6.1 7.0 3:2 6.1 4.6 3.1 6.3 1,122 15,262 21,628 254 402 591 dollar amount by size of 1 - . „„ 1! . - 1 l~ : $ 100,000-$499.999 $500,000-$999. 999 Revised Revised Series 0.6 37.1 13.8 15.. 4 4.3 9.3 2.3 4.8 1.1 „ 2.9 28.1 10.8 12.5 4.0 44.2 13.2 19.1 3.7 7.9 4.0 3.2 0.5 37.1 11.1 16.4 4.9 12.3 4.8 6.2 6. 34 6.25 6.57 6.48 6.47 7.51 7.98 6.26 6. 65 6.64 6.80 8.53 7.76 6.59 6.53 6.65 6.89 6. S 2 V 8.00 8.01 . 6.74 6.90 7.26 7.54 6.30 6.48 • 8.25 Beginning February. 1971 the ( Quarterly Survey of Interest: Rates on Business Federal Reserve Bulletin. • Dollar amounts in thousands. 7.06 7.54 6.88 6.89 7.87 6.90 8.97 7.30 7.68 7.95 6.67 7.91 7.03 7.14 54&0 ' 17.7 12.3 7.1 2.7 1.1 2.5 9.2 2.7 14.5 4.3 100.0 100.0 1.8 0.7 100.0 6.2 100.0 52.8 17.3 12.0 7.0 2,8 1.4 -2.4 1.2 2.2 0.8 100.0 100.0 103,641 123,362 963,037 " . 73,-919 ' .A3. 6 5.7 7.0 1.2 97,383 212_ — A 1 L . 0.4 , LLZ- LS5_ WEIGHTED AVERAGE RATES (per cent per annnm) New York City 7 Other Northeast 8 North Central 7 Southeast 8 Southwest 1 4 West Coast $1,000.000 < 6.54 6. 56 6.49 7.22 '7.63 6.64 2Ml 6.98 6.43 6.54 6.54 6.93 ' 6.27 6.28 6.57 6.27 6.70 6.59 6.24 6.28 6.12 6.87 6.47 series is planned 6.81 8.19 7,59 7.04 6.28 6. 65 6.42 A d e s c r i p t i o n of the revised 6.60 6.60 6.46 6.25 for the June