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Authorized for public release by the FOMC Secretariat on 2/3/2021
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE 5YSTEM
WASHINGTON,
D.C. 205551
March 9, 1976
TO:
Federal Open Market Committee
FROM:
Arthur L. Broida
Attached,
for your information, is
a report on changes
in bank lending practices, based on a study conducted on February
15,
1976.
Attachment
Authorized for public release by the FOMC Secretariat on 2/3/2021
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Office Correspondence
To
From
Mr.
Date
Subject:
Ettin
March 5,
Changes in
1976
Bank Lending
Practices February 15, 1976
Virginia Lewis
Responses to the Survey of Bank Lending Practices conducted on
February 15, 1976, suggest that for the most part banks did not anticipate
the further erosion in business loan volume that occurred over the NovemberDecember period.
A comparison with the survey taken in mid-November reveals
that the commercial loan demand, as forecast in November by the respondents
for the next three months, did not materialize.
While 28 per cent of the
panel in November had been hopeful of a moderate increase in loan demand
in the November-February interval, in February only 7 per cent reported
actually experiencing somewhat stronger borrowing demands.
In addition,
64 per cent had anticipated in November, that demand would remain weak
between the two surveys, but in February, loan demand was reported to have
deteriorated further at 44 per cent of the banks and had continued to be
slack at an equal proportion.
However, a significant proportion of the 121 large commercial
banks reporting on the current survey are still expressing optimism for
an upturn in the demand for commercial and industrial loans.
Over one-
third of the respondents are expecting, after allowance for normal seasonal
variation, a moderate firming of business loan demand over the next
quarter.
The remaining 65 per cent see little or no change in new credit
demands for the same period.
(See Table 1, page 1.)
Although almost one-half of the banks did report a moderate
easing in their interest rates charged to nonfinancial businesses and
about 16 per cent a loosening of compensating balances requirements, this
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softening of price and nonprice terms of lending seems to be a reaction
to the steep drop in the volume of business loans at these banks and is
in line with the steady decline in the prime rate charged by most banks
during the November to February interval.
In general, however, non-price
terms of lending, which had become quite restrictive over the past two
years, still continued to be quite stringent for the February survey
period.
(See Table 1, pages 1 and 2.)
Probably in response to the continued overall weakness in loan
demand over recent quarters, and the improved liquidity condition of most
banks, the respondents did indicate a greater willingness to make all
categories of loans included in the survey.
About one-third of the banks
are more willing to make terms loans to businesses and to make consumer
loans.
In addition, more banks are seeking participations with correspondent
banks and loans to brokers, in an effort, ostensibly, to replace declining
business loan portfolios.
Very few banks are more willing to make multi-
family mortgage family loans, although 12 per cent reported they were more
willing to make single family mortgage loans.
Despite some increased indication that banks were more willing
lenders in February, several banks commented that they are not willing to
relax standards of credit worthiness in order to increase loan volume. One
of the significant unknowns for coming months is whether or not bankers-more willing to make loans after several quarters of loan contraction and
improved liquidity--will begin to relax such standards in order to expand
their loan portfolios.
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NOT FOR QUOTATION OR PUBLICATION
PAGE 01
TABLE 1
QUARTERLY
(STATUS
SURVEY OF CHANGES IN BANK LENDING PRACTICES
AT SELECTED LARGE BANKS IN THE U.S. ¹
OF POLICY ON
FEBRUARY 15, 1976 COMPARED TO THREE MONTHS EARLIER)
(NUMBER OF BANKS & PERCENT OF TOTAL BANKS REPORTING)
MUCH
STRONGER
TOTAL
BANKS
PCT
BANKS
PCT
MODERATELY
STRONGER
BANKS
PCT
ESSENTIALLY
UNCHANGED
BANKS
PCT
MODERATELY
WEAKER
BANKS
PCT
MUCH
WEAKER
BANKS
PCT
STRENGTH OF DEMAND FOR COMMERCIAL AND
INDUSTRIAL LOANS (AFTER ALLOWANCE FOR
BANK'S USUAL SEASONAL VARIATION)
COMPARED TO THREE MONTHS AGO
121
100.0
0
0.0
ANTICIPATED DEMAND IN NEXT 3 MONTHS
121
100.0
0
0.0
ANSWERING
QUESTION
BANKS
PCT
MUCH
FIRMER
POLICY
BANKS
PCT
9
42
7.4
56
46.3
53
43.8
34.7
66
54.6
12
9.9
MODERATELY
FIRMER
POLICY
BANKS
PCT
ESSENTIALLY
UNCHANGED
POLICY
MODERATELY
EASIER
POLICY
BANKS
BANKS
PCT
PCT
LENDING TO NONFINANCIAL BUSINESSES
TERMS AND CONDITIONS:
100.0
47.9
49.6
100.0
81.8
15.7
100.0
90.9
0.8
100.0
89.3
8.3
ESTABLISHED CUSTOMERS
100.0
85.1
11.6
NEW CUSTOMERS
100.0
77.7
16.5
100.0
88.4
8.3
100.0
78.6
10.7
INTEREST RATES CHARGED
COMPENSATING
STANDARDS
OR SUPPORTING
BALANCES
OF CREDIT WORTHINESS
MATURITY OF TERM LOANS
REVIEWING CREDIT LINES OR LOAN APPLICATIONS
LOCAL SERVICE AREA
CUSTOMERS
NONLOCAL SERVICE AREA CUSTOMERS
¹
SURVEY OF LENDING PRACTICES AT 123 LARGE BANKS REPORTING IN THE FEDERAL RESERVE QUARTERLY INTEREST RATE SURVEY
AS OF FEBRUARY 15, 1976.
3
2.5
1
0.8
MUCH
EASIER
POLICY
BANKS
PCT
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NOT FOR QUOTATION OR PUBLICATION
PAGE 02
TABLE 1 (CONTINUED)
ANSWERING
QUESTION
BANKS
PCT
MUCH
FIRMER
POLICY
BANKS
PCT
MODERATELY
FIRMER
POLICY
BANKS
PCT
ESSENTIALLY
UNCHANGED
POLICY
BANKS
PCT
MODERATELY
EASIER
POLICY
BANKS
PCT
MUCH
EASIER
POLICY
BANKS
PCT
FACTORS RELATING TO APPLICANT 2/
VALUE AS DEPOSITOR OR
SOURCE OF COLLATERAL BUSINESS
121
100.0
104
86.0
INTENDED USE OF THE LOAN
121
100.0
105
86.7
LENDING TO "NONCAPTIVE" FINANCE COMPANIES
TERMS AND CONDITIONS:
INTEREST RATES CHARGED
100.0
98
81.0
16.5
COMPENSATING OR SUPPORTING BALANCES
100.0
117
96.7
0.8
ENFORCEMENT OF BALANCE REQUIREMENTS
100.0
115
95.0
1.7
ESTABLISHING NEW OR LARGER CREDIT
100.0
101
83.4
5.8
LINES
ANSWERING
QUESTION
BANKS
WILLINGNESS TO MAKE OTHER TYPES OF
TERM LOANS
CONSUMER
SINGLE FAMILY
MULTI-FAMILY
ALL OTHER
PARTICIPATION
CORRESPONDENT
LOANS
2/
LOANS
BANKS
TO BROKERS
BANKS
PCT
MODERATELY
MORE
WILLING
BANKS
BANKS
PCT
PCT
65.3
30.6
100.0
67.5
28.3
100.0
85.9
10.0
100.0
90.9
2.5
100.0
90.9
5.8
121
100.0
76.1
24
19.8
121
100.0
81.0
21
17.4
LOANS
MORTGAGE LOANS
MORTGAGE
PCT
ESSENTIALLY
UNCHANGED
100.0
LOANS
MORTGAGE
BANKS
MODERATELY
LESS
WILLING
LOANS
TO BUSINESSES
INSTALMENT
PCT
CONSIDERABLY
LESS
WILLING
LOANS
WITH
FOR THESE FACTORS, FIRMER MEANS THE FACTORS WERE CONSIDERED MORE IMPORTANT IN MAKING DECISIONS
CREDIT REQUESTS, AND EASIER MEANS THEY WERE LESS IMPORTANT.
FOR
APPROVING
CONSIDERABLY
MORE
WILLING
BANKS
PCT
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NOT FOR QUOTATION OR PUBLICATION
COMPARISON
TABLE 2
PAGE 03
OF QUARTERLY CHANGES IN BANK LENDING PRACTICES AT BANKS GROUPED BY SIZE OF TOTAL DEPOSITS ¹
FEBRUARY 15, 1976, COMPARED TO THREE MONTHS EARLIER)
(STATUS OF POLICY ON
(NUMBER UF BANKS IN EACH COLUMN AS PER CENT OF TOTAL BANKS ANSWERING QUESTION)
SIZE
TOTAL
13F BANK
MUCH
STRONGER
$1 & UNDER
OVER
$1
-
TOTAL DEPOSITS IN BILLIONS
MODERATELY
STRONGER
ESSENTIALLY
UNCHANGED
MODERATELY
WEAKER
$1 &
OVER
$1 &
OVER
$1 &
OVER
UNDER
$1
UNDER
$1
UNDER
$1
MUCH
WEAKER
$1 &
OVER
$1 &
OVER
UNDER
$1
UNDER
$1
COMPARED TO THREE MONTHS AGO
100
100
0
0
8
7
55
40
37
49
0
4
ANTICIPATED DEMAND IN NEXT 3 MONTHS
100
100
0
0
37
33
53
56
10
10
0
1
STRENGTH OF DEMAND FOR COMMERCIAL AND
INDUSTRIAL LOANS (AFTER ALLOWANCE FOR
BANK'S USUAL SEASONAL VARIATION)
TOTAL
$1 &
OVER
UNDER
$1
MUCH
FIRMER
$1 &
OVER
UNDER
$1
MODERATELY
FIRMER
ESSENTIALLY
UNCHANGED
MODERATELY
EASIER
$1 &
OVER
$1
$1 &
OVER
$l &
OVER
UNDER
UNDER
$1
UNDER
$1
MUCH
EASIER
$1 &
OVER
UNDER
$1
LENDING TO NONFINANCIAL BUSINESSES
TERMS AND CONDITIONS:
INTEREST RATES CHARGED
100
100
0
0
2
3
54
43
44
54
0
0
COMPENSATING OR SUPPORTING BALANCES
100
100
0
0
0
4
85
80
15
16
0
0
STANDARDS OF CREDIT WORTHINESS
100
100
2
1
6
7
90
92
2
0
0
0
MATURITY OF TERM LOANS
100
100
0
1
0
1
90
89
8
9
2
0
ESTABLISHED CUSTOMERS
100
100
0
1
0
4
85
86
15
9
0
0
NEW CUSTOMERS
100
100
0
1
0
9
79
77
21
13
0
0
LOCAL SERVICE AREA CUSTOMERS
100
100
0
1
0
4
87
91
13
4
0
0
NONLOCAL SERVICE AREA CUSTOMERS
100
100
0
1
6
13
81
77
13
9
0
0
REVIEWING CREDIT LINES OR LOAN APPLICATIONS
¹
SURVEY OF LENDING PRACTICtS AT
53 LARGE BANKS (DEPOSITS OF $1 BILLION OR MORE) AND
70 SMALL BANKS (DEPOSITS OF
$1 BILLION) REPORTING IN THE FEDERAL RESERVE QUARTERLY INTEREST RATE SURVEY AS OF
FEBRUARY 15, 1976.
LESS THAN
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NOT
FOR QUOTATION OR PUBLICATION
TABLE
2
(CONTINUED)
SIZE
NUMBER
ANSWERING
QUESTION
$1 &
OVER
UNDER
$1
OF BANK
MUCH
FIRMER
POLICY
$1 &
OVER
UNDER
$1
PAGE 04
--
TOTAL DEPOSITS IN BILLIONS
MODERATELY
FIRMER
POLICY
ESSENTIALLY
UNCHANGED
POLICY
MODERATELY
EASIER
POLICY
$1 &
OVER
$1 &
OVER
$1 &
OVER
UNDER
$1
UNDER
$1
UNDER
$1
MUCH
EASIER
POLICY
$1 &
OVER
UNDER
$1
FACTORS RELATING TO APPLICANT 2/
VALUE AS DEPOSITOR OR
SOURCE OF COLLATERAL BUSINESS
100
100
INTENDED USE OF THE LOAN
100
100
LENDING TO "NONCAPTIVE" FINANCE COMPANIES
TERMS AND CONDITIONS:
INTEREST RATES CHARGED
COMPENSATING OR SUPPORTING BALANCES
ENFORCEMENT OF BALANCE REQUIREMENTS
ESTABLISHING NEW OR LARGER CREDIT LINES
NUMBER
ANSWERING
QUESTION
$1 &
OVER
UNDER
$1
CONSIDERABLY
LESS
WILLING
$1 &
OVER
UNDER
$1
MODERATELY
LESS
WILLING
ESSENTIALLY
UNCHANGED
$1 &
OVER
$1 &
OVER
UNDER
$1
UNDER
$1
MODERATELY
MORE
WILLING
$l
&
OVER
UNDER
$1
WILLINGNESS TO MAKE OTHER TYPES OF LOANS
²
TERM LOANS TO BUSINESSES
0
6
77
56
CONSUMER INSTALMENT LOANS
0
4
67
68
SINGLE FAMILY MORTGAGE LOANS
0
1
88
85
MULTI-FAMILY MORTGAGE LOANS
2
9
98
86
ALL OTHER MORTGAGE LOANS
0
4
98
86
PARTICIPATION LOANS WITH
CORRESPONDENT BANKS
100
100
8
1
79
74
LOANS TO BROKERS
100
100
0
1
75
86
FOR THESE FACTORS, FIRMER MEANS THE FACTORS WERE CONSIDERED MORE
CREDIT REQUESTS
AND EASIER MEANS THEY WERE LESS IMPORTANT.
IMPORTANT IN MAKING DECISIONS
FOR APPROVING
CONSIDERABLY
MORE
WILLING
$1 &
OVER
UNDER
$1
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TABLE
FOR QUOTATION OR PUBLICATION
PAGE 05
3
QUARTERLY SURVEY OF CHANGES IN BANK LENDING PRACTICES AT SELECTED LARGE BANKS IN THE U.S. 1/
STATUS OF POLICY ON FEBRUARY 15, 1976 COMPARED TO THREE MONTHS EARLIER
(NUMBER OF BANKS)
ALL
OSTS
NEW YORK
BOSTON
TOTAL CITY OUTSIDE
PHILADEL.
CLEVELAND
RICHMOND
ATLANTA
CHICAGO
ST.
LOUIS
MINNEAPOLIS
KANS.
CITY
DALLAS
SAN
FRAN
STRENGTH OF DEMAND FOR COMMERCIAL AND
INDUSTRIAL LOANS (AFTER ALLOWANCE FOR
BANK'S USUAL SEASONAL VARIATION)
COMPARED TO 3 MONTHS AGO
121
MUCH STRONGER
MODERATELY STRONGER
ESSENTIALLY UNCHANGED
MODERATELY WEAKER
MUCH WEAKER
0
9
56
53
3
ANTICIPATED DEMAND NEXT
THREE MONTHS
121
MUCH STRONGER
MODERATELY STRONGER
ESSENTIALLY UNCHANGED
MODERATELY WEAKER
MUCH WEAKER
0
42
66
12
1
0
0
2
5
1
0
1
6
9
0
0
0
4
4
0
0
1
2
5
0
0
0
6
0
0
0
0
3
8
0
0
0
4
6
2
0
1
3
6
0
0
2
9
4
0
0
1
4
4
0
0
0
1
2
0
0
2
4
3
0
0
1
5
3
0
0
1
9
3
0
0
3
3
2
0
0
4
12
0
0
0
1
7
0
0
0
3
5
0
0
0
3
3
0
0
0
2
8
1
0
0
2
6
3
1
0
1
8
1
0
0
10
5
0
0
0
5
4
0
0
0
0
3
0
0
0
3
3
3
0
0
4
3
2
0
0
5
6
0
0
0
0
5
3
0
0
1
10
5
0
0
0
6
2
0
0
3
3
0
0
3
8
0
0
6
6
0
1
4
5
0
0
1
8
6
0
0
0
4
5
0
0
0
2
1
0
0
0
5
4
0
0
5
4
0
0
3
10
0
0
1
7
0
0
0
1
13
2
0
0
0
8
0
0
0
1
9
0
0
0
13
2
0
0
0
7
2
0
0
0
2
1
0
0
0
8
1
0
LENDING TO NONFINANCIAL
BUSINESSES
TERMS AND CONDITIONS
INTEREST RATES CHARGED
MUCH FIRMER POLICY
MODERATELY FIRMER POLICY
ESSENTIALLY UNCHANGED POLICY
MODERATELY EASIER POLICY
MUCH EASIER POLICY
COMPENSATING BALANCES
MUCH FIRMER POLICY
MODERATELY FIRMER POLICY
ESSENTIALLY UNCHANGED POLICY
MODERATELY EASIER POLICY
MUCH EASIER POLICY
¹
121
0
3
58
60
0
1
4
3
0
0
121
0
3
99
19
0
0
1
5
2
0
0
0
4
2
0
O
0
8
3
0
O
0
12
0
0
SURVEY OF LENDING PRACTICES AT 123 LARGE BANKS REPORTING IN THE FEDERAL RESERVE QUARTERLY INTEREST RATE SURVEY
FEBRUARY 15, 1976.
AS OF
0
0
7
2
0
O
0
9
4
0
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NOT FOR QUOTATION OR PUBLICATION
TABLE
ALL
DSTS
BOSNEW YORK
TON TOTAL CITY OUTSIDE
3
PAGE 06
(CONTINUED)
PHILADEL.
CLEVELAND
RICHMOND
ATLAN- CHICST.
TA
AGO
LOUIS
MINNE- KANS.
APOLIS
CITY
DALLAS
SAN
FRAN
LENDING TO NONFINANCIAL
BUSINESSES
TERMS AND CONDITIONS
STANDARDS OF CREDIT WORTHINESS
121
MUCH FIRMER POLICY
MODERATELY FIRMER POLICY
ESSENTIALLY UNCHANGED POLICY
MODERATELY EASIER POLICY
MUCH EASIER POLICY
2
8
110
1
0
MATURITY OF TERM LOANS
MUCH FIRMER POLICY
MODERATELY FIRMER POLICY
ESSENTIALLY UNCHANGED POLICY
MODERATELY EASIER POLICY
MUCH EASIER POLICY
0
0
8
0
0
1
4
11
0
0
0
O
8
0
0
1
4
3
0
0
0
0
6
0
0
0
1
10
0
0
1
1
10
0
0
0
10
0
0
0
0
15
0
0
0
9
0
0
0
0
3
0
0
0
0
9
0
0
0
0
9
0
0
0
2
10
1
0
0
0
8
0
0
0
1
14
1
0
0
0
8
0
0
0
1
6
1
0
0
0
4
2
0
0
0
10
1
0
1
0
11
0
0
0
0
10
0
0
0
15
0
0
0
7
2
0
0
0
3
0
0
0
0
7
2
0
0
8
1
0
0
0
11
1
1
0
0
8
0
0
0
1
12
3
0
0
0
7
1
0
0
1
5
2
0
0
0
6
0
0
0
0
9
2
0
1
1
9
1
0
0
1
9
0
0
0
0
13
2
0
0
0
9
O
0
0
0
2
1
0
0
0
9
0
0
0
0
6
3
0
0
0
11
2
0
0
0
6
2
0
0
4
8
4
0
0
0
7
1
0
0
4
1
3
0
0
0
6
0
0
0
0
7
4
0
1
1
10
0
0
0
1
9
0
0
0
0
12
3
0
0
0
9
0
0
0
0
3
0
0
0
0
7
2
0
0
7
2
0
0
0
10
3
0
0
0
8
0
0
0
2
12
2
0
0
0
7
1
0
0
2
5
1
0
0
0
6
0
0
0
0
10
1
0
1
1
10
0
0
0
10
0
0
0
8
1
0
0
0
3
0
0
0
0
9
0
0
0
0
7
2
0
0
0
11
2
0
121
1
1
108
10
1
0
0
REVIEWING CREDIT LINES OR LOANS
ESTABLISHED CUSTOMERS
MUCH FIRMER POLICY
MODERATELY FIRMER POLICY
ESSENTIALLY UNCHANGED POLICY
MODERATELY EASIER POLICY
MUCH EASIER POLICY
NEW CUSTOMERS
1
3
103
14
0
121
MUCH FIRMER POLICY
MODERATELY FIRMER POLICY
ESSENTIALLY UNCHANGED POLICY
MODERATELY EASIER POLICY
MUCH EASIER POLICY
LOCAL SERVICE
121
AREA CUSTOMERS
MUCH FIRMER POLICY
MODERATELY FIRMER POLICY
ESSENTIALLY UNCHANGED POLICY
MODERATELY EASIER POLICY
MUCH EASIER POLICY
1
6
94
20
0
0
121
1
3
107
10
0
0
0
0
0
13
2
0
Authorized for public release by the FOMC Secretariat on 2/3/2021
NOT FOR QUOTATION OR PUBLICATION
TABLE
ALL
DSTS
BOSNEW YORK
TON
TOTAL CITY OUTSIDE
PAGE 07
3 (CONTINUED)
PHILADEL.
CLEVE- RICHLAND
MONd
ATLAN- CHICST.
TA
AGO LOUIS
MINNE- KANS.
CITY
APOLIS
DALLAS
SAN
FRAN
LENDING TO NONFINANCIAL
BUSINESSES
REVIEWING CREDIT LINES OR LOANS
NONLOCAL SERVICE AREA CUST
MUCH FIRMER POLICY
MODERATELY FIRMER POLICY
ESSENTIALLY UNCHANGED POLICY
MODERATELY EASIER POLICY
MUCH EASIER POLICY
121
1
12
95
13
0
0
0
8
0
0
0
4
10
2
0
0
0
7
1
0
0
4
3
1
0
0
0
6
0
0
0
0
9
2
0
1
2
9
0
0
0
0
0
13
2
0
0
0
8
1
0
0
0
3
0
0
0
0
7
2
0
0
1
5
3
0
0
1
11
1
0
0
1
7
0
0
1
2
13
0
0
0
0
8
0
0
1
2
5
0
0
0
0
6
0
0
0
1
10
0
0
0
1
11
0
0
0
1
9
0
0
0
1
12
2
0
0
1
8
0
0
0
1
2
0
0
0
0
9
0
0
0
0
7
2
0
0
0
10
3
0
0
0
7
1
0
0
2
14
0
0
0
0
8
0
0
0
2
6
0
0
0
0
5
1
0
0
1
10
0
0
0
1
9
2
0
0
1
9
0
0
0
0
13
2
0
0
0
9
0
0
0
0
3
0
0
0
1
8
0
0
0
0
8
1
0
0
0
10
3
0
0
15
1
0
0
0
7
1
0
0
0
8
0
0
0
1
5
0
0
0
0
8
3
0
0
0
10
2
0
0
0
12
3
0
0
00
3
0
0
0
8
1
0
0
0
1
8
1
0
0
0
8
1
0
0
0
10
3
0
0
4
6
0
FACTORS RELATING TO APPLICANT 2/
VALUE AS DEPOSITOR OR SOURCE
OF COLLATERAL BUSINESS
MUCH FIRMER POLICY
MODERATELY FIRMER POLICY
ESSENTIALLY UNCHANGED POLICY
MODERATELY EASIER POLICY
MUCH EASIER POLICY
INTENDED USE OF LOAN
MUCH FIRMER POLICY
MODERATELY FIRMER POLICY
ESSENTIALLY UNCHANGED POLICY
MODERATELY EASIER POLICY
MUCH EASIER POLICY
121
1
9
104
7
0
121
0
6
105
10
0
LENDING TO "NONCAPTIVE"
FINANCE COMPANIES
TERMS AND CONDITIONS
INTEREST RATES CHARGED
MUCH FIRMER POLICY
MODERATELY FIRMER POLICY
ESSENTIALLY UNCHANGED POLICY
MODERATELY EASIER POLICY
MUCH EASIER POLICY
121
0
3
98
20
0
0
0
6
2
0
² FOR THESE FACTORS, FIRMER MEANS THE FACTORS WERE CONSIDERED MORE IMPORTANT IN MAKING DECISIONS FOR APPROVING
CREDIT REQUESTS, AND EASIER MEANS THEY WERE LESS IMPORTANT.
5
3
0
Authorized for public release by the FOMC Secretariat on 2/3/2021
PAGE 08
TABLE 3 (CONTINUED)
NOT FOR QUOTATION OR PUBLICATION
ALL
DSTS
NEW YORK
BOSTOTAL CITY OUTSIDE
TON
PHILADEL.
CLEVE- RICHMOND
LAND
ST.
ATLAN- CHICLOUIS
AGO
TA
MINNE- KANS.
CITY
APOLIS
DALLAS
SAN
FRAN
LENDING TO "NONCAPTIVE"
FINANCE COMPANIES
TERMS AND CONDITIONS:
SIZE OF COMPENSATING BALANCES
MUCH FIRMER POLICY
MODERATELY FIRMER POLICY
ESSENTIALLY UNCHANGED POLICY
MODERATELY EASIER POLICY
MUCH EASIER POLICY
ENFORCEMENT OF
BALANCE REQUIREMENT
MUCH FIRMER POLICY
MODERATELY FIRMER POLICY
ESSENTIALLY UNCHANGED POLICY
MODERATELY EASIER POLICY
MUCH EASIER POLICY
ESTABLISHING NEW OR LARGER
CREDIT LINES
MUCH FIRMER POLICY
MODERATELY FIRMER POLICY
ESSENTIALLY UNCHANGED POLICY
MODERATELY EASIER POLICY
MUCH EASIER POLICY
121
0
3
117
1
0
0
0
8
0
0
0
1
15
0
0
0
1
7
0
0
0
0
8
0
O
0
0
6
0
0
0
0
11
0
0
0
0
12
0
0
0
2
8
0
0
0
0
15
0
0
0
0
8
1
0
0
0
3
0
0
0
0
9
0
0
0
0
9
0
0
0
0
13
0
0
0
1
7
0
0
0
0
16
0
0
0
0
8
0
0
0
0
8
0
0
0
0
6
0
0
0
0
10
1
0
0
1
11
0
0
0
1
9
0
0
0
0
15
0
0
0
0
8
1
0
0
0
3
0
0
0
0
9
0
0
0
0
9
0
0
0
1
12
0
0
0
1
7
0
0
0
13
3
0
0
0
0
6
2
0
0
0
7
1
0
0
0
6
0
0
1
1
9
0
0
1
3
8
0
0
0
2
8
0
0
0
14
1
00
0
0
9
0
0
0
0
3
0
0
1
6
2
0
0
1
8
0
0
0
2
10
1
0
0
0
4
4
0
0
1
12
3
0
0
0
8
0
0
0
1
4
3
0
0
0
4
2
0
0
0
8
3
0
0
1
8
3
0
0
2
6
2
0
0
0
13
2
0
0
0
5
4
0
0
0
2
1
0
0
0
4
5
0
0
0
4
5
0
0
0
9
3
1
0
0
7
1
0
0
0
11
3
1
0
0
6
1
0
0
0
5
2
1
0
0
3
3
0
0
0
8
3
0
0
0
8
3
1
0
2
4
4
0
0
0
11
4
0
0
0
6
3
0
0
0
3
0
0
0
0
7
2
0
0
1
5
3
0
0
0
8
5
0
121
O
4
115
2
0
121
2
11
101
7
0
WILLINGNESS TO MAKE OTHER
TYPES OF LOANS
TERM LOANS TO BUSINESSES
CONSIDERABLY LESS WILLING
MODERATELY LESS WILLING
ESSENTIALLY UNCHANGED
MODERATELY MORE WILLING
CONSIDERABLY MORE WILLING
CONSUMER INSTALMENT LOANS
CONSIDERABLY LESS WILLING
MODERATELY LESS WILLING
ESSENTIALLY UNCHANGED
MODERATELY MORE WILLING
CONSIDERABLY MORE WILLING
121
0
4
79
37
1
120
0
3
81
34
2
Authorized for public release by the FOMC Secretariat on 2/3/2021
NOT
FOR QUOTATION OR
PAGE 09
TABLE 3 (CONTINUED)
PUBLICATION
ALL
DSTS
NEW YORK
BOSTON TOTAL CITY OUTSIDE
PHILADEL.
CLEVE- RICHLAND MOND
ATLAN- CHICST.
LOUIS
TA
AGO
MINNE- KANS.
CITY
APOLIS
DALLAS
SAN
FRAN
WILLINGNESS TO MAKE OTHER
TYPES OF LOANS
SINGLE FAMILY MORTGAGE LOANS
120
CONSIDERABLY LESS WILLING
MODERATELY LESS WILLING
ESSENTIALLY UNCHANGED
MODERATELY MORE WILLING
CONSIDERABLY MORE WILLING
1
1
103
13
2
MULTIFAMILY MORTGAGE LOANS
CONSIDERABLY LESS WILLING
MODERATELY LESS WILLING
ESSENTIALLY UNCHANGED
MODERATELY MORE WILLING
CONSIDERABLY MORE WILLING
ALL OTHER MORTGAGE LOANS
CONSIDERABLY LESS WILLING
MODERATELY LESS WILLING
ESSENTIALLY UNCHANGED
MGDLRATELY MORE WILLING
CONSIDERABLY MORE WILLING
PARTICIPATION LOANS WITH
CORRESPONDENT BANKS
CONSIDERABLY LESS WILLING
MODERATELY LESS WILLING
ESSENTIALLY UNCHANGED
MODERATELY MORE WILLING
CONSIDERABLY MORE WILLING
LOANS TO BROKERS
CONSIDERABLY LESS WILLING
MODERATELY LESS WILLING
ESSENTIALLY UNCHANGED
MODERATELY MORE WILLING
CONSIDERABLY MORE WILLING
NUMBER OF BANKS
0
0
8
0
0
0
0
15
0
0
0
0
8
0
0
0
0
8
0
0
0
0
7
0
0
7
4
0
0
0
9
2
1
1
0
9
0
0
0
0
14
1
0
0
0
8
1
0
0
0
3
0
0
0
1
6
2
0
0
0
9
0
0
0
0
10
3
0
0
0
0
0
5
00
1
0
2
12
1
0
0
0
7
0
0
0
2
5
1
0
0
0
6
0
0
0
1
10
0
0
0
0
11
1
0
1
2
7
0
0
0
1
14
0
0
0
1
7
1
0
0
0
3
0
0
0
0
9
0
0
0
0
9
0
0
0
0
13
0
0
0
2
12
1
0
0
7
0
0
2
5
1
0
0
0
6
0
0
11
0
0
0
0
10
1
0
9
0
0
0
13
2
0
0
1
7
1
0
0
0
3
0
0
0
0
9
0
0
0
0
9
0
0
0
0
12
1
0
0
0
12
0
0
0
0
8
2
0
0
13
2
0
0
00
0
7
2
0
0
0
3
0
0
0
6
3
0
0
2
7
00
0
2
9
2
0
0
0
10
2
0
0
0
9
1
0
0
0
14
1
0
0
0
6
3
0
0
0
8
1
0
0
0
7
2
0
0
0
11
1
1
0
0
0
8
0
120
1
7
109
3
0
120
1
3
109
7
0
0
0
0
121
0
5
92
24
0
0
0
5
3
0
0
2
12
2
0
0
0
6
2
0
0
2
6
0
0
0
1
4
1
0
0
0
11
0
0
0
7
1
0
0
1
11
4
0
0
0
4
4
0
0
1
7
0
0
0
0
5
1
0
0
0
8
3
0
0
0
121
0
1
98
21
1
123
0
0
2
1
0
Authorized for public release by the FOMC Secretariat on 2/3/2021
NOT FOR QUOTATION OR PUBLICATION
PAGE 10
TABLE 4
COMPARISON OF SELECTED RESPONSES IN THE NOVEMBER
NOV. 15, 1975
NUMBER
OF BANKS
FEBRUARY SURVEYS
AND
FEBRUARY 15, 1976
NUMBER OF BANKS
STRONGER UNCHANGED
WEAKER
STRENGTH OF DEMAND FOR COMMERCIAL AND
INDUSTRIAL LOANS
COMPARED TO THREE MONTHS AGO
STRONGER
UNCHANGED
WEAKER
7
60
56
0
ANTICIPATED DEMAND THREE MONTHS HENCE
STRONGER
UNCHANGED
WEAKER
34
78
11
19
21
2
ANTICIPATED DEMAND THREE MONTHS HENCE
STRONGER
UNCHANGED
WEAKER
34
78
11
LENDING TO NONFINANCIAL BUSINESSES
INTEREST RATES CHARGED
FIRMER
UNCHANGED
EASIER
COMPENSATING OR SUPPORTING BALANCES
FIRMER
UNCHANGED
EASIER
STANDARDS OF CREDIT WORTHINESS
FIRMER
UNCHANGED
EASIER
MATURITY OF TERM LOANS
FIRMER
UNCHANGED
EASIER
4
12
49
5
3
6
4
COMPARED TO THREE MONTHS AGO
15
3
16
38
33
5
8
2
1
FIRMER
UNCHANGED
EASIER
Authorized for public release by the FOMC Secretariat on 2/3/2021
NOT FOR QUOTATION OR PUBLICATION
TABLE 4
NOV. 15,
1975
NUMBER
OF BANKS
REVIEWING CREDIT LINES OR LOAN APPLICATION
ESTABLISHED CUSTOMERS
FIRMER
UNCHANGED
EASIER
1
108
14
NEW CUSTOMERS
FIRMER
UNCHANGED
EASIER
LOCAL SERVICE AREA CUSTOMERS
FIRMER
UNCHANGED
EASIER
NONLOCAL
SERVICE AREA CUSTOMERS
FIRMER
UNCHANGED
EASIER
9
97
17
2
107
14
8
104
11
FACTORS RELATING TO APPLICANT
VALUE AS DEPOSITOR OR
SOURCE OF COLLATERAL BUSINESS
FIRMER
UNCHANGED
EASIER
9
109
5
INTENDED USE OF THE LOAN
FIRMER
UNCHANGED
EASIER
3
114
6
LENDING TO "NONCAPTIVE"
PAGE 11
(CONTINUED)
FINANCE COMPANIES
TERMS AND CONDITIONS:
INTEREST RATES CHARGED
FIRMER
UNCHANGED
EASIER
3
103
16
COMPENSATING OR SUPPORTING BALANCES
FIRMER
UNCHANGED
EASIER
5
116
1
FEBRUARY 15,
1976
NUMBER OF BANKS
FIRMER
UNCHANGED
EASIER
Authorized for public release by the FOMC Secretariat on 2/3/2021
NOT
TABLE 4
FOR QUOTATION OR PUBLICATION
(CONTINUED)
NOV. 15,
1975
NUMBER
OF BANKS
PAGE 12
FEBRUARY 15, 1976
NUMBER OF BANKS
FIRMER
UNCHANGED
EASIER
LENDING TO "NONCAPTIVE" FINANCE COMPANIES
TERMS AND CONDITIONS:
ENFORCEMENT OF BALANCE REQUIREMENTS
FIRMER
UNCHANGED
EASIER
ESTABLISHING NEW OR LARGER CREDIT LINES
FIRMER
UNCHANGED
EASIER
9
113
0
20
99
4
LESS
WILLINGNESS TO MAKE OTHER TYPES OF LOANS
TERM LOANS TO BUSINESSES
LESS
UNCHANGED
MORE
4
98
21
CONSUMER INSTALMENT LOANS
LESS
UNCHANGED
MORE
1
89
32
SINGLE FAMILY MORTGAGE LOANS
LESS
UNCHANGED
MORE
6
104
11
MULTI-FAMILY MORTGAGE LOANS
LESS
UNCHANGED
MORE
9
109
2
ALL OTHER MORTGAGE LOANS
LESS
UNCHANGED
MORE
11
104
6
PARTICIPATION
LOANS WITH CORRESPONDENT BANKS
LESS
5
UNCHANGED
105
MORE
12
LOANS TO BROKERS
LESS
UNCHANGED
MORE
UNCHANGED
MORE
Authorized for public release by the FOMC Secretariat on 2/3/2021
NOT FOR QUOTATION OR PUBLICATION
PAGE 13
TABLE 5
CROSS-CLASSIFICATION OF SELECTED RESPONSES IN THE
FEB. 15, 1976
NUMBER
OF BANKS
FEBRUARY SURVEY
FEBRUARY 15, 1976
NUMBER OF BANKS
ESSENTIALLY
FIRMER
UNCHANGED
EASIER
ENDING TO NONFINANCIAL BUSINESSES
INTEREST RATES CHARGED
FIRMER
ESSENTIALLY UNCHANGED
EASIER
3
58
60
COMPENSATING OR SUPPORTING BALANCES
2
1
0
4
53
1
0
45
15
FIRMER
ESSENTIALLY UNCHANGED
EASIER
7
94
20
ESTABLISHED
3
1
0
VALUE AS DEPOSITOR OR
SOURCE OF COLLATERAL BUSINESS
FIRMER
ESSENTIALLY UNCHANGED
EASIER
10
104
7
NEW CUSTOMERS
INTENDED
3
3
0
CUSTOMERS
3
90
10
USE OF THE
7
96
2
1
3
10
LOAN
ENDING TO "NONCAPTIVE" FINANCE COMPANIES
INTEREST RATES CHARGED
FIRMER
ESSENTIALLY UNCHANGED
EASIER
3
98
20
COMPENSATING OR SUPPORTING BALANCES
0
2
1
2
95
1
0
20
0
COMPENSATING OR SUPPORTING BALANCES
FIRMER
ESSENTIALLY UNCHANGED
EASIER
3
117
1
ENFORCEMENT OF BALANCE REQUIREMENTS
0
2
1
3
113
1
0
0
1
COMPENSATING OR SUPPORTING BALANCES
FIRMER
ESSENTIALLY UNCHANGED
EASIER
ESTABLISHING NEW OR LARGER CREDIT LINES
0
2
1
7
98
12
0
1
0
Authorized for public release by the FOMC Secretariat on 2/3/2021
NOT FOR QUOTATION OR PUBLICATION
PAGE 14
TABLE 5 (CONTINUED)
CROSS-CLASSIFICATION OF SELECTED RESPONSES IN THE
FEB. 15, 1976
NUMBER
OF BANKS
FEBRUARY SURVEY
FEBRUARY 15, 1976
NUMBER OF BANKS
ESSENTIALLY
LESS
UNCHANGED
MORE
WILLINGNESS TO MAKE OTHER TYPES OF LOANS
TERM LOANS TO
BUSINESSES
LESS
ESSENTIALLY UNCHANGED
MORE
SINGLE FAMILY MORTGAGE LOANS
LESS
ESSENTIALLY
MORE
UNCHANGED
FAMILY MORTGAGE LOANS
MATURITY
1
1
0
OF TERM LOANS
3
77
28
0
1
10
LOANS
MULTI-FAMILY MORTGAGE LOANS
0
1
1
95
1
7
13
2
0
LESS
ESSENTIALLY UNCHANGED
MORE
ALL OTHER MORTGAGE LOANS
1
1
3
96
0
12
TERM LOANS TO
BUSINESSES
LESS
ESSENTIALLY UNCHANGED
MURE
CONSUMER INSTALMENT LOANS
0
3
1
2
55
21
15
0
23
TERM LOANS TO
BUSINESSES
LESS
ESSENTIALLY
MORE
PARTICIPATION LOANS WITH
CORRESPONDENT BANKS
0
3
4
67
22
1
SINGLE
TERM LOANS TO
UNCHANGED
BUSINESSES
LESS
ESSENTIALLY UNCHANGED
MORE
LOANS TO BROKERS
0
3
1
66
0
29
12
Authorized for public release by the FOMC Secretariat on 2/3/2021
NOT FOR QUOTATION OR PUBLICATION
TABLE
A CROSS-CLASSIFICATION OF SELECTED RESPONSES
FEB.
15, 1976
NUMBER
OF BANKS
STRENGTH OF DEMAND FOR COMMERCIAL
INDUSTRIAL LOANS
IN THE
FEBRUARY SURVEY
FEBRUARY 15,
1976
NUMBER OF BANKS
ESSENTIALLY
FIRMER
UNCHANGED
EASIER
AND
COMPARED TO THREE MONTHS AGO
STRONGER
ESSENTIALLY UNCHANGED
WEAKER
COMPARED TO
PAGE
5 (CONTINUED)
THREE MONTHS AGO
STRONGER
ESSENTIALLY UNCHANGED
WEAKER
INTEREST RATES CHARGED
TO NONFINANCIAL BUSINESSES
1
5
3
0
30
26
2
23
31
COMPENSATING OR SUPPORTING BALANCES
7
1
COMPARED TO THREE MONTHS AGO
STRONGER
ESSENTIALLY UNCHANGED
WEAKER
STANDARDS OF CREDIT
1
8
52
4
COMPARED TO THREE MONTHS AGO
STRONGER
ESSENTIALLY UNCHANGED
WEAKER
MATURITY OF TERM LOANS
0
6
0
51
2
51
COMPARED TO THREE MONTHS AGO
STRONGER
ESSENTIALLY UNCHANGED
WEAKER
NEW CUSTOMERS
0
2
COMPARED TO THREE MONTHS AGO
STRONGER
ESSENTIALLY UNCHANGED
WEAKER
COMPARED TO THREE MONTHS AGO
STRONGER
ESSENTIALLY UNCHANGED
WEAKER
5
WORTHINESS
0
0
42
("NONCAPTIVE FINANCE COMPANIES")
ENFORCEMENT OF BALANCE REQUIREMENTS
9
0
0
1
54
1
3
52
1
("NONCAPTIVE FINANCE COMPANIES")
ESTABLISHING NEW OR LARGER CREDIT LINES
0
8
1
5
47
4
15
Authorized for public release by the FOMC Secretariat on 2/3/2021
NOT FOR QUOTATION OR PUBLICATION
TABLE
5
PAGE
(CONTINUED)
A CROSS-CLASSIFICATION OF SELECTED RESPONSES IN THE
FEB. 15, 1976
NUMBER
OF BANKS
FEBRUARY SURVEY
FEBRUARY 15, 1976
NUMBER OF BANKS
ESSENTIALLY
LESS
UNCHANGED
MORE
STRENGTH OF DEMAND FOR COMMERCIAL AND
INDUSTRIAL LOANS
WILLINGNESS TO MAKE
TERM LOANS TO BUSINESSES
COMPARED TO
THREE MONTHS AGO
STRONGER
ESSENTIALLY UNCHANGED
WEAKER
COMPARED TO
THREE MONTHS AGO
STRONGER
ESSENTIALLY UNCHANGED
WEAKER
WILLINGNESS TO MAKE
CONSUMER INSTALMENT LOANS
0
7
2
17
37
1
17
37
2
COMPARED TO
THREE MONTHS AGO
STRONGER
ESSENTIALLY UNCHANGED
WEAKER
WILLINGNESS TO MAKE
SINGLE FAMILY MORTGAGE LOANS
0
8
1
0
49
6
2
46
8
COMPARED TO
THREE MONTHS AGO
STRONGER
ESSENTIALLY UNCHANGED
WEAKER
WILLINGNESS TO MAKE
MULTI-FAMILY MORTGAGE LOANS
0
9
0
4
50
1
4
50
2
COMPARED TO
THREE MONTHS AGO
STRONGER
ESSENTIALLY UNCHANGED
WEAKER
WILLINGNESS TO MAKE
ALL OTHER MORTGAGE LOANS
0
9
1
51
49
3
COMPARED TO
THREE MONTHS AGO
STRONGER
ESSENTIALLY UNCHANGED
WEAKER
COMPARED TO THREE MONTHS AGO
STRONGER
ESSENTIALLY UNCHANGED
WEAKER
WILLINGNESS TO MAKE
PARTICIPATION LOANS WITH
CORRESPONDENT BANKS
WILLINGNESS TO MAKE
LOANS TO BROKERS
0
7
16
Authorized for public release by the FOMC Secretariat on 2/3/2021
NOT FOR QUOTATION OR PUBLICATION
TABLE 5
PAGE 17
(CONTINUED)
CROSS-CLASSIFICATION OF SELECTED RESPONSES
FEB. 15, 1976
NUMBER
OF BANKS
IN THE
FEBRUARY SURVEY
FEBRUARY 15, 1976
NUMBER OF BANKS
ESSENTIALLY
FIRMER
UNCHANGED
EASIER
STRENGTH OF DEMAND FOR COMMERCIAL AND
INDUSTRIAL LOANS
OR SUPPORTING BALANCES
35
6
53
11
2
11
ANTICIPATED DEMAND IN NEXT 3 MONTHS
STRONGER
ESSENTIALLY UNCHANGED
WEAKER
COMPENSATING
1
2
0
ANTICIPATED DEMAND IN NEXT 3 MONTHS
STRONGER
ESSENTIALLY UNCHANGED
WEAKER
STANDARDS OF CREDIT WORTHINESS
4
37
1
4
62
0
0
11
2
ANTICIPATED DEMAND IN NEXT 3 MONTHS
STRONGER
ESSENTIALLY UNCHANGED
WEAKER
MATURITY OF TERM LOANS
37
1
0
59
12
1
ANTICIPATED DEMAND IN NEXT 3 MONTHS
STRONGER
ESSENTIALLY UNCHANGED
WEAKER
NEW CUSTOMERS
1
29
3
56
3
9
ANTICIPATED DEMAND IN NEXT 3 MONTHS
STRONGER
ESSENTIALLY UNCHANGED
WEAKER
("NONCAPTIVE
ESTABLISHING
3
5
5
LESS
ANTICIPATED DEMAND IN NEXT 3 MONTHS
STRONGER
ESSENTIALLY UNCHANGED
WEAKER
4
7
0
12
7
1
FINANCE COMPANIES")
NEW OR LARGER CREDIT LINES
35
4
58
3
0
8
ESSENTIALLY
UNCHANGED
MORE
WILLINGNESS TO MAKE
TERM LOANS TO BUSINESSES
9
32
1
23
41
2
1
6
6
@FedFRASER