Full text of E.2 Survey of Terms of Business Lending : September 29, 1983

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#

I

FEDERAL RESERVE statistical release
For immediate release
SEPTEMBER 29. 1 9 8 3

SURVEY OF TERMS OF BANK LENDING MADE DURING AUGUST 1 - 5 , 1983
Table 1
SHORT-TERM COMMERCIAL AND INDUSTRIAL LOANS (OTHER THAN CONSTRUCTION AND LAND DEVELOPMENT)
Size class of loans (thousands)
aW sizes

$1-24

$25-49

$50-99

$100-499

$500-999

$1000 and over

ALL B A N K S 1
Amount of loans (thousands)
Number of loans
Weighted average maturity (months) 2
Loans w i t h fixed rates
Loans w i t h floating rates

$36,819,86d
171,400
1. 2
.7
2. 1

$949,559
115,850
3.7
3.3
4.6

$668,400
20.397
4.3
4.2
4.5

$1,094,777
17,109
3.4
2.6
4.7

$2,138,132
12,274
4.0
3.5
4.3

$986,449
1,478
3.9
2.8
4.5

$30,982,550
4,291
.8
. 4
1.5

Weighted average interest rate ( % ) 3
Standard error 4
Interquartile r a n g e s
Loans w i t h f i x e d rates
Loans w i t h f l o a t i n g rates

11.09
.15
10.'52-11.07
11.01
11.23

13.99
. 18
13. 1 0 - 1 4 . 9 3
14.41
13.28

13.56
.23
12.25-14.50
1 3 . 98
12.87

12.73
.27
11.85-13.65
12.97
12.50

11.89
. 12
11.02-12.53
12. 0 8
11.80

11.81
. 17
1 1.02-12.46
11. 90
11.77

10.81
. 14
10.52-11.01
10.76
10.92

J6.2
64. 3
11.3
38.0

37.o
32.9
11.2
. 1

38.3
33.2
15.7
. 1

50.4
45.9
24.7
.2

66. 0
51.8
25. 2
.6

71.7
65. 7
36.4
.9

48 LARGE B A N K S 1
A m o u n t of loans (thousands)
Number of loans
Weighted average maturity (months) 2
Loans w i t h fixed rates
Loans w i t h floating rates

$27,927,123
16,857
.7
.4
1. 3

$62,270
5,906
4. 1
3.0
4.5

$78,689
2,334
4. 1
2.6
4.5

$138,124
2.137
3.8
2.4
4.1

$564,380
2,877
3.7
2.0
4.3

$388,974
578
4.2
2.5
4.8

$26,694,685
3,025
.6
4
1.1

Weighted average interest rate ( % ) 3
Standard error4
Interquartile range 5
Loans w i t h fixed rates
Loans w i t h floating rates

10.85
.03
10.52-11.02
10.80
10.95

12.88
.04
1 2 . 0 5 - 1 3 . 50
13.46
12.67

12.41
. 13
1 1 . 8 5 - 1 3 . 10
12.66
12.36

12.24
.05
1 1 . 6 3 - 1 2 . 75
12.38
12.21

11.80
.01
11.02-12.25
11.50
11.87

1 1.48
.04
11.02-12.01
11.09
11.59

10.81
.03
10.52-11.01
10.79
10.84

3 3. 2
67. t
0.5
46.0

74.3
59.0
23.2
. 3

82. 1
67. 1
29.3
.3

82.8
68.9
30.9
.3

80. 1
67.9
35.9
1.5

77.4
69.6
35.2
1.6

31. 1
67. 1
7.3
48.0

OTHER BANKS
A m o u n t of loans (thousands)
Number of loans
Weighted average maturity (months) 2
Loans w i t h fixed rates
Loans w i t h f l o a t i n g rates

S8,892,746
154,542
3.0
2. 1
4. 4

$887,289
109,944
3. 7
3.3
4.6

$589,711
19,063
4.3
4.2
4.6

$956,653
14,972
3.4
2.6
4.8

$1,573,752
9,397
4. 0
3.7
4. 3

$597,475
900
3.7
3.0
4.3

$4,287,866
1,267
2. 1
.7
4.3

Weighted average interest rate ( % ) 3
Standard error 4
Interquartile r a n g e s
Loans w i t h fixed rates
Loans w i t h f l o a t i n g rates

11.84
. 1ft
10.66-12.90
11.82
11.86

14.06
. 17
13.24-14.97
14.44
13.37

13.71
. 18
1 2 . 6 8 - 1 4 . 75
14.03
13.04

12.81
.25
11.85-13.68
13.00
12.58

11.93
. 12
10.96-12.68
12. 18
11.77

12.02
. 16
1 1 . 0 2 - 1 2 . 75.
12. 28
11.90

10.85
. 14
10.52-11.05
1 0 . 52
11.33

35.0
31. 1
10. 4
. 1

32.5
28.7
13.9
. 1

45.7
42.6
23.8
. 1

Percentage of a m o u n t of loans:
W i t h floating rates
Made under c o m m i t m e n t
W i t h no stated maturity
W i t h one-day maturity

Percentage of amount of loans:
W i t h floating rates
Made under c o m m i t m e n t
W i t h no s t a t e d maturity
W i t h one-day maturity

Percentage of a m o u n t of loans:
W i t h f l o a t i n g rate
Made under c o m m i t m e n t
W i t h n o s t a t e d maturity
W i t h one-day maturity

See last page for footnotes.




45.5
55.2
19.9
12.9

61.0
•6.0
21.4
.3

67.9
63.2
37.2
.4

32.4
67.4
8.9
45.0

40.7
68.9
26.5

Table 2
LONG-TERM COMMERCIAL AND INDUSTRIAL LOANS (OTHER THAN CONSTRUCTION AND LAND DEVELOPMENT)
Size class of loans (thousands)
all sizes

S1-9B

$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

$4,491,493
2 6 , 332
5S.3
c 1. d
53.7

$531,982
23,262
48.8
54.2
38.3

$386,952
2,176
68.5
112.8
46.5

$151,196
228
40.0
53. 1
37.7

$3,421,363
667
55.5
52.6
55.9

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

11. 83
.24
1 0 . 9 2 - 1 2 . 40
13.00
11.53

14.53
.61
12.68-15.60
15.54
12.59

12.06
.23
11.02-12.96
12.05
12.07

11.66
.24
1 1 . 0 2 - 1 2 . 13
11.77
11.64

11.39
.20
10.92-11.73
11. 17
11.42

79.8
66.0

34.1
17. 1

66.8
43.8

85.4
72.3

88. 1
75.8

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

$3,031,864
2, 590
53. b
42.4
55.0

$38,689
1,439
35.8
45.4
32.3

$118,115
578
39.2
41.5
38.8

$82,843
124
36.3
39.8
35.7

$2,792,217
449
55.0
42. 4
56.5

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

11.43
.12
10. 9 2 - 1 1 . 7 0
11.45
11.43

13.05
.06
12. 1 3 - 1 3 . 80
14.47
12.55

11.97
.03
11.06-12.54
12.65
11.87

11.59
.08
1 1 . 0 2 - 1 2 . 12
12.47
11.44

11.38
. 12
1 0 . 9 2 - 1 1 . 57
11. 2 5
11.40

89.0
80.8

73.7
54.7

87. 1
80.5

85.2
83.6

89.4
81.1

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

$1,459,628
23,743
58.8
73.0
49.5

$493,292
21,823
49.8
54.5
39.5

$268,837
1,597
81.4
122.4
51.6

$68,353
104
44.5
69.8
40.2

$629,146
218
57.7
79.8
52.9

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

12.65
.20
11.07-13.50
13.89
11.84

14. 65
.60
1 2 . 6 8 - 1 5 . 87
15.57
12.60

12. 10
.23
11.00-13.24
11.97
12.20

11.74
.22
1 1 . 0 7 - 1 2 . 19
10.89
11.89

11. 4 0
. 16
10.92-12.13
10.95
11. 50

60.7
35.3

31.0
14.2

58.0
27.7

85.6
58.7

82.4
52 . 5

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.




Table 3
CONSTRUCTION AND LAND DEVELOPMENT LOANS (SECURED AND UNSECURED BY REAL ESTATE)
Size class of loans (thousands)
all sizes
ALL BANKS1
Amount of loans (thousands)
Number of loans
Weighted average maturity (months) 2
Loans w i t h fixed rates
Loans w i t h floating rates
Weighted average interest rate (%)3
Standard error 4
Interquartile range5
Loans w i t h fixed rates
Loans w i t h floating rates
Percentage of amount of loans:
W i t h floating rates
Secured by real estate
Made under commitment
Made for construction
1-4 family
Multifamily
Nonresidential
W i t h no stated maturity
W i t h one-day maturity
48 LARGE BANKS 1
Amount of loans (thousands)
Number of loans
Weighted average maturity (months) 2
Loans w i t h fixed rates
Loans w i t h floating rates
Weighted average interest rate (%)3
Standard error 4
Interquartile range 5
Loans w i t h fixed rates
Loans w i t h floating rates
Percentage of amount of loans:
W i t h f l o a t i n g 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 w i t h fixed rates
Loans w i t h floating rates
Weighted average interest rate (%)3
Standard error 4
interquartile rangeS
Loans w i t h fixed rates
Loans w i t h 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
W i t h no stated maturity
With one-day maturity

See last page for notes to tables.




$1-24

$25-49

$50-99

$100-499

$500 and over

$1.340,014
23,395
15. 5
14. 1
16. 5

3166,917
18,146
5.4
3.2
10. 1

$85,626
2,401
10. 4
10.9
a. i

$47,270
726
11.5
9.4
12.3

$481,527
2,485
19. 7
22.9
14. 0

$558,674
237
17.0
4.5
18.4

12.99
. 30
12. 1 3 - 1 3 . 6 1
14.18
12.33

14.91
1.00
13.24-15.51
15.57
13.50

13.47
.36
13.50-13.81
13.66
12.81

12.70
.27
12. 1 3 - 1 3 . 2 4
13.10
12.56

12.97
. 44
1 1 . 0 7 - 1 4 . 37
14.08
1 1.93

12.40
. 27
1 1. 6 2 - 1 3 . 24
12.61
12.37

64. 1
80.8
75.4
100.0
23.3
10.5
66.2
10. 1
.4

32. 1
81.8
80. 1
100,0
65.5
7.2
27. 3
1.0
. 1

22.0
97. 5
60.9
100.0
17.0
4.9
78. 1
2.7
.2

73.3
89.5
74.6
100.&
36.2
16.6
47.2
7.6
.8

51.7
96. 3
83. 5
100.0
12. 1
8.2
79. 7
24.8
.3

90.0
63.9
69. 3
100.0
20. 2
13.9
65.9
1.4
.5

$464,472
738
15.0
3.6
16.5

$2,442
246
7.8
3.3
8.5

$2,692
74
10. 1
13.3
9.6

$6,927
103
10.8
16.3
10. 1

$42,983
189
11. 5
21.9
10.3

$409,426
126
15.5

12.48
. 10
11.62- 13.24
12.77
12.44

12.61
. 14
12. 1 3 - 1 3 . 2 4
13.54
12.47

12.55
.21
12. 1 3 - 1 3 . 2 4
11.82
12.64

12.50
. 18
12.01-13.24
13.23
12.41

12.77
. 06
12. 1 3 - 1 3 . 24
13.02
12.74

12.45
. 15
1 1. 5 7 - 1 3 . 24

88. 1
89.6
76.3
100.0
52.4
19.5
28. 1
3. 4
5.6

89.3
74. 0
74.7
100.0
35.4
11.6
53.0
3. 6
.0

89.9

88. 8
56.7
78. 1
too. 0
25.5
ti. 4
66.2
1. 1
.9

87.2
92.3
69.2
100.0
41.9
25.7
32.4
7.9
4.6

17.3

12^41

68.6
100. 0
38. 2

100.0
23.7

3*. 5

.6

i
3875,542
23,257
15.9
15.4
16.5

$164,475
17,901
5.4
3. 2
10.2

$82,933
2,327
10.4
10.9
7.9

340,343
623
11.6
9.0
12.8

$438,544
2,296
20.7
22. 9
15.5

$149,247
111
21.1
19. 2
21.2

13.27
.28
12. 1 9 - 1 4 . 3 7
14.35
12.23

14.94
.98
13.31-15.51
15.58
13.54

13.50
.28
13.50-13.81
13.67
12.83

12.74
. 19
12. 1 3 - 1 3 . 2 5
13. 09
12.59

12.98
.43
11.02-14.37
14. 10
11.78

12. 26
.21
12.01-12.75
11.96
12.28

5 1.0
93. 6
74.0
100. 0
22. 1
11.7
66.2
14.8
.1

31.3
81.7
80.3
100.0
65.9
6.9
27.2
.9
.0

19.9
97.7
60.4
100.0
15.8
4.4
79.7
2.7
.0

70.6
92. 1
74.5
100.0
36.4
17.4
46.2
8. 3
1.0

48.0
97.7
85.0
100.0
9.5
7. 7
82.8
27. 1
.0

93.7
92.6
42.2
100.0
10.5
31.3
58. 1
.0

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 e r r o r 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:
W i t h 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)2
Weighted average interest rate (%)3
Standard error 4
Interquartile ranged
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 B A N K S 6
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
Percentage of amount of loans:
W i t h floating rates
Made under c o m m i t m e n t
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

$ 157,098
44,542
6.7

$153,852
10,599
6. 1

$152,314
4,307
7.0

$129,834
1,987
8.0

$89,163
642
6.4

$259,986
383
8.0

13.72
.22
12.d7-H.49

14.30
.25
13. 4 2 - 1 4 . 8 5

14.U3
.21
1 3 . 4 2 - 1 4 . 57

14. 15
.20
13.50-14.63

13.79
.20
13.00-14.49

13.40
.48
12. 4 3 - 1 4 . 97

12. 94
1.56
11.84-14.49

13.05
14. 14
13.93
14. 26
1 3 . 17

14.35
16.89
14.01
14.55
14.21

14.31
13.90
14.03
13.91
13.88

14. 07
14.70
14.07
14. # 0
13.92

13.91
13.99

11. 57
13.33
13.81

13.74

13.05

13.95

11.67

40.4
41.3

26.9
33. 1

35.5
36.8

29.8
34. 1

32.6
42.6

68.8
36.3

51.9
54. 2

19.5
6.5
58. 1
6. 4
9.6

7. 1
6.5
65. 1
11.4
9.9

11.4
8.9
64.0
7.3
8.3

16.7
6.4
57.3
14.3
5.4

29.7

7.6
13.3
60.2

32.2

48.5
6.1

18.9

$2 J O , 4 7 6
4,087
6. 6

$7,819
2,111
5. 1

$12,841
884
5.4

$14,626
446
6.4

$16,140
249
6.6

$30,568
221
6.9

$148,483
177
6.8

12.20
. 15
11.51-12.68

13.01
.09
12.40-13.47

12.91
. 19
12. 1 6 - 1 3 . 2 5

12.66
. 15
12.09-13.24

12.53
. 10
1 2 . 0 0 - 1 3 . 10

12.24
.23
1 1.58-12.68

12.00
.33
11.41-12.28

11.95
12.77
12.32
12.90
12.31

12.47
13.24
13.03
13.77
12.93

12.04
12.80
12.98

12.48
13.34
12.65

1 2 . 14

11.94

11.93

12.68

1 2 . 18

12.04

12.90

12.41

12.40

12.48

12. 11

84.7
9 1.0

76.3
75.4

75.9
80.6

86.2
81.0

72.3
80.5

79.2
90.6

88.2
94.9

3 8.6
4.5
40.2
. 3
16. 4

3.9
5.3
70.7
1.3
18.7

3.8
5.0
66. 1

9.3
8.6
62.6

14.8

15.2

53.7

45.2

60.9

29. 3

23.5

18.8

30.0

15.0

14.3

$711,770
5 8 , 374
7.3

$149,280
42,431
6. 8

$14 1 , 0 1 1
9,715
6. 1

$137,688
3,861
7.0

$113,694
1,738
8.2

$58,595
422
6. 1

14.21
.16
13. 7 5 - 1 4 . 5 8

14.37
.23
13. 4 2 - 1 4 . 8 8

1 4 . 13
.09
13.72-14.58

14.31
. 13
13.95-14.94

13.97
.17
13.72-14.49

14.31
.42
14. 5 0 - 1 4 . 9 7

14.09
14.41
14. 26
14.28
13.79

14.41
17.05
14.07
14.55
14.34

14.37
13.95
1 4 . 13
13.93
14. 18

1 4 . 16

$94 2 , / 4 6
b2,4d 1
7. 1

14.23
*

26. 1
25.2

24. 3
30.9

31.9
32.8

23.8
29.2

13.3
7. 1
63.9
8. 3
7.4

7.3
6.6
64.8
12.0
9.4

12. 1
9.2
63.9
7.9
6.9

56.7

1 4 . 16
*

*

27.0
37.3

63.3
7.9

17.5
48.9
*

*

12.03

55.0
11.2

Table 5
SHORT-TERM COMMERCIAL AND INDUSTRIAL LOANS MADE BELOW PRIME
Size class of loans (thousands)

ALL B A N K S
Average prime rate 7
Characteristics of loans
made a t rates below prime: 8
A m o u n t of loans (millions)
Number of loans
Average maturity (months) 2
Percent w i t h no stated maturity
Percent w i t h one-day maturity
Average effective Interest rate (%)3
Average nominal interest rate ( % ) 9
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 w i t h n o s t a t e d maturity
Percent w i t h one-day maturity
.

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

OTHER BANKS
Average prime rate 7
Characteristics of loans
made at rates below prime: 8
A m o u n t of loans (millions)
Number of loans
Average maturity (months)2
Percent w i t h no stated maturity
Percent w i t h one-day maturity
Average effective interest rate ( % ) 3
Average nominal interest rate ( % ) 9

See last page for notes to tables.




all sizes

$1-24

$25-49

$50-99

10.6

11.9

12. 1

11.5

10.9

10.7

10. 5

23,735
21,061

78
10,516

92
2,865

168
2,491

443
2,602

119
186

22,835
2,401

0.4
6.6
50.6

3.4
5.8
0.0

3.3
0.4
0.0

2.2
2.8
0.0

4.3
6.8
1.0

2.3
29.9
3.6

0. 3
6. 6
52.6

10.64
10.15

13.82
13.17

13.03
12.44

12.09
11.52

10. 65
10. 18

10.50
10.05

10.61
10. 12

10.5

10.5

10.5

10.5

10.5

10.5

10. 5

20,116
2,0*0

1
71

2
53

3
44

18
77

35
52

20,057
1,742

0.2
5.1
54.9

3.5
19.9
0.0

5.8
0.0
0.0

4.2
29.6
0.0

3. 1
20.9
4.3

2. 0
41.3
5.3

0. 2
5.0
55. 1

1 0 . 63
10.13

8 . J4
7.81

7.26
7.03

7.85
7.56

9 . 34
8 . 94

10. 5 0
10.05

10.63
10. 13

11.0

12.0

12.3

11.6

11.0

10.8

10.5

3,619
19,021

77
10,445

90
2,812

165
2,446

625
2,525

84
134

2,779
659

1.7
15.3
26.7

3.4
5.6

3.2
0.4

2. 2
2.3

4.3
6.2

0.0

0.0

0.0

0.9

2.4
25.1
2.9

10.71
10.30

13.88
13.23

12.17
11.60

10. 70
10.23

10.50
10.05

13. 15
12.56

$100-499

$500-999

$1000 and over

1. 1
17.9
34.5

10.47
10.09

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 3/31 83, average domestic assets of
48 large banks were $13.6 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.