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Federal

LIBRARY

Reserve £

-^LtSuJinancial Data
°K~t

2

198B---------------------------------------------------------------------------------------------------------------------------------------------------------------

November 28, 1986
Over two-thirds of commercial bank business loans are made to creditworthy
firms at interest rates below the prime bank loan rate. According to two 1986
Federal Reserve System surveys of the terms of commercial bank lending, more
than 93 percent of these are short-term loans, either at fixed or at floating interest
rates. As the table on the back page indicates, most (74 percent) are fixed-rate
loans with discounts of 75 basis points or more from the prime rate and average
maturities of less than three weeks. Floating-rate loans have relatively longer
maturities, well over two months on average.
Since floating-rate loans adjust with interest rate changes, floating-rate
borrowers may not be as concerned about their initial discount as are fixed-rate
borrowers. It is noteworthy that the prime rate declined from 9.50 percent during
the February survey to 8.50 percent just before the May survey. Perhaps as
a result of this decline and borrowers’ strong negotiating position during the
weak business loan growth of the first half of 1986, the average discount from
the prime rate increased sharply for the fixed-rate loans, while remaining roughly
unchanged for floating-rate loans.
—Mack Ott
(continued on back page)

tiik

KIDKRVI

KRSKRVE

A
/iLlVkof

nr ST. IOI1S

Views expressed do not necessarily reflect official positions of the Federal Reserve System.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

2

ADJUSTED MONETARY BASE
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED BY THIS BANK

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
256

BILLIONS.
_
252

SEP.

254

10
252

—OCT.
NOV.

5

250
248
246
244
242
240
238
236
234
232

0 29

9 20
NOV

4 10
DEC

I

15 29 12 26 12 20
FEB
MAR

0 29

7 21

4 19

2 IS 30 IS 27 10 24
AUG
SEP

LATEST PLOTTED RESERVE MAINTENANCE PERIOD ENDINGt NOVEMBER 19,

S 22

5 10

9 17 91

1986

S OF FINANCIAL INSTITUTIONS AT FEDERAL
THE PUBLIC AND IN THE VAULTS OF ALL
BANK.

A DETAILED DESCRIPTION OF THE ADJUSTED MONETARY BASE IS AVAILABLE FROM THIS BANK.

RECENT DATA ARE PRELIMINARY.
ADJUSTED MONETARY BASE
COMPOUNDED ANNUAL RATES OF CHANGE,
AVERAGE OF TWO MAINTENANCE PERIODS ENDINGt

4/23/86
5/21/86
6/18/86
7/16/86
8/13/86
9/24/86
10/22/86
11/19/86

11/20/85

2/12/86

4/23/86

5/21/86

6/18/86

7/16/86

8/13/86

9/24/86

7.7
8.3
9.0
8.6
8.3
8.3
8.2
8.5

8.8
9.8
9.1
8.6
8.5
8.4
8.7

12.5
10.3
9.1
8.9
8.6
9.1

9.8
8.3
8.3
8.1
8.7

5.7
6.9
6.9
7.8

7.2
7.1
8.2

7.8
0.0

9.5


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MONEY STOCK ( Ml )
AVLKAUtS OP DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
730 =--------1---------- 1---------

ILL IONS OF DOLLARS
---------- -----------3 730

703.4
713.3
712.3

OCT

NOV
1985

DEC

JAN

FEB

MAR

APR

90 14
JUL

MAY

LATEST DATA PLOTTED WEEK ENDlNGt NOVEMBER 17,

I 29
AUG

8 22

6 20
OCT

9 IT
NOV

1

19 29

1986

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.

DEPoilTSEANDMTR*viLERiNCHECKS? ** T*

PUe*-IC' DE“"® DEPOSITS, OTHER CHECKABLE

MONEY STOCK 1 Ml 1
COMPOUNDED ANNUAL RATES OF CHANGE
1/18/85

2/17/86

4/14/86

5/19/86

AVERAGE OF FOUR WEEKS ENDING.

6/16/86

7/M/B8

8/18/88

O/IS/88

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
4/M/86
5/19/86
6/18/86
7/14/86
8/18/86
9/15/86
10/20/86
11/17/86

10.3
12.6
13.9
13.5
14.4
14.8
14.4
14.8


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

17.6
18.7
17.2
17.8
18.0
16.9
17.2

22.7
19.0
19.3
19.4
17.6
18.0

16.7
18.0
18.4
16.5
17.0

16. 1
17.1
15.2
16.1

19.9
16.4
17.Z

14.3
16.1

H.6

PREPARED BT FEDERAL RESERVE BANK OF ST. LOUIS

3

4
MONEY MULTIPLIER^
CURRENCY COMPONENT OF MONEY STOCK u
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

1986
EP.
CT.
BV.

7 21
OCT

8
22
6
20
3
17

4 18
NOV

RATIO
2,784
2.794
2.797
2.794
2.793
2.828

Ml MULTIPLIER

2 16 30 13 27 10 24 10 24
JAN
FEB

7 21

8 19

2 16 30 14 26 11 25
JUL
AUG

LATEST DATA PLOTTED TWO 9€EKS ENDINGt NOVEMBER 17,

6 22

6 20
OCT

3 17
NOV

1

18 29

1980

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
184

COMPOUNDED ANNUAL RATES
___ OF CHANGE, AVERAGE OF
---------------- a--------- v EN0|NG
986 FROM
NOVEMBER 17
THE FOUR
l ENDINGt
SEP.

1

— JUN
— NOV.

1986
1986
1986
1986

8.0
7.6
8.0
7.2

182

180

178

CURRENCY

18

176

174

172

iM BILLIONS
OCT.

13

170
181.4

182.1
7 21
OCT

4 IS
NOV

2 16 90 13 27 10 24 10 24
JAN
FEB

7 21
APR

8 19
MAY

LATEST DATA PLOTTED WEEK ENDINGt NOVEMBER 17,

1111
2 16 90 14 26 II

I 1 I I I I I I I I I I I I I 1 I.
8 22

6 20
OCT

9 17
NOV

1

15 29

1986

1/ RATIO OF MONEY STOCK (Ml ) TO ADJUSTED MONETARY BASE
2/ CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.6 RELEASE.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

TOTAL CHECKABLE DEPOSITS
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
540 E------- ,---------- 1--------

BILLIONS OF DOLLARS

BILLIONS
OCT.

13
514.3
515.6
515.7
525.0
523.7

11 I I I I
4

OCT

IS

NOV
1985

2 16 30 19 27 10 24 10 24

DEC

JAN

FEB

MAR

7 21

5 10

APR

MAY

LATEST DATA PLOTTED WEEK ENDING* NOVEMBER 17,
DEPOSITORY^^NSTITUT?ONS? IS TH£ SUU

2 16 30 14 28 |1 23

JUL

0 22

AUG

6 20

3 17

OCT

NOV

I

15 20

I960

DEUAND DEPOSITS Af® OTHER CHECKABLE DEPOSITS AT ALL

TOTAL CHECKABLE DEPOSITS
COMPOUNDED ANNUAL RATES OF CHANGE ,
11/18/85

2/17/86

4/14/86

5/19/86

AVERAGE OF FOUR WEEKS ENDING:

6/16/86

7/14/86

8/18/86

9/15/86

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
4/14/80
5/19/86
6/16/86
7/14/86
8/18/86
9/15/86
10/20/86
11/17/86

11.5
14.8
16.5
16. 1
17.2
17.9
17. 1
17.8


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

22.1
23.5
21 .5
22.1
22.5
20.7
21.2

29.0
24.0
24.2
24.2
21.7
22.2

20.7
22.2
22.8
20.0
20.8

19.5
21.1
18.2
19.5

24.6
19.6
20.9

16.9
19.5

17.2

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

5

6

YIELDS ON SELECTED SECURITIES
AVERAGES OF DAILY RATES

PERCENT

12.0

PRIME
LOAN

MUNIC

6.0

4

18

I

15 2fl 13 27 10 24

7 21

FEB

4

MAR

18

2

16 50 13 27

APR

JUN

II

25

8 22

5 10

3 17 31

JUL

14 28

NOV

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING: NOVEMBER 28,

1986
OCT.

NOV.

DEC.

3
10
17
24
31
7
14
21
28 X
5
12
19
26

90 DAY
CD'S

30-DAY
COMMERCIAL
PAPER

90-DAY
BANKERS'
ACCEPTANCES

CORPORATE
Aaa BONDS

5.77
5.59
5.69
5.78
5.68
5.69
5.81
5.80
5.75

5.83
5.67
5.73
5.78
5.74
5.77
5.83
5.87
5.88

5.66
5.45
5.62
5.69
5.60
5.61
5.73
5.71
5.71

8.90
8.86
8.88
8.89
8.80
8.73
8.77
8.65
8.56

CORPORATE
Baa BOWS
10.23
10.24
10.25
10.26
10. 19
10.09
10. 12
10.04
9.99

12 28

DEC
1986.

MUNICIPAL
BOWS XX
7. 19
7.06
7.08
7. 1 1
6.94
6.94
6.92
6.78
N.A.

NOTE: CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS* H.15 RELEASE.
X AVERAGES OF RATES AVAILABLE
XX BOND BUYER'S AVERAGE INDEX OF 20 MUNICIPAL BOWS. THURSDAY DATA
N.A. - NOT AVAILABLE


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

SELECTED

INTEREST RATES

AVERAGES OF DAILY RATES

PERCENT

PERCENT
11.0

—|

5-YEAR
TREASURY SECURITIES

DISCOUNT RATE

3-MONTH
TREASURY BILL

OCT

DEC

JAN

FEB

MAR

APR

MAY

1985

JON

JUL

AUG

IeP

3OCT
17 31

14 20 12 26

NOV

1986

DEC

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING, NOVEMBER 28, I

1986
OCT.

3
10
17
24
31
NOV.
7
14
21
^ 28 *
DEC.
5
12
19
26

FEDERAL
funds

m

6.08
5.75
5.83
5.91
5.86
6.02
5.98
6.13
6.00

«rHy
BILL

6-MONTH
TREASURY
BILL «BK

1-YEAR
TREASURY
BILL

5-YEAR
TREASURY
SECURITIES

LONG-TERM
TREASURY
SECURITIES

5.19
5.05
5.20
5.29
5.19
5.26
5.41
5.36
5.39

5.37
5.13
5.22
5.39
5.21
5.30
5.54
5.44
5.39

5.47
5.27
5.41
5.49
5.43
5.45
5.56
5.47
5.45

6.93
6.72
6.88
6.92
6.80
6.76
6.85
6.75
6.68

8.05
7.99
8. 18
8. 16
7.98
7.88
7.95
7.75
7.72

njyPWE&'PMI1”

mflUrat.

*»“uC!MONYAVERAGEEfDISCOUNT1) E,OING ™° DAYS EARLIER THAN DATE SHOWN


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

PREPARED BY FEDERAL RESERVE BANC OF ST. LOUIS

7

8
COMMERCIAL BANK
SMALL TIME DEPOSITS^
LARGE TIME DEPOSITS 2/
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
415

TTTT

415

OCT.

-

NO V.

13

368.7

27
3
10
17

388.3
385.3
384.3
384.2

1

I

1 1 1

—-—1--------- 1----------—1---------“
1986
BILLIONS

SMALL TIME 1 JEPOSI TS

IN I

IN I

395

385

-

---

375

M il

M IL

375

-LLl2
'111 -LLL Mil- J_LL

1 1 1

-LILL -LLL

1 1 1

LATEST DATA PLOTTED WEEK ENDING* NOVEMBER 17,

1 1 1 L -LLL _LLL 1 1 IL -LLL

1 1 1

1988
BILLIONS OF DOLLARS

279.9
281.3

i?

i_ L

279.0

- NO

aw

1 1

I OCT. 13
295

M il

--------1--------1---------- 1-------I
ISfifi. BILLIONS

—V

-

\

c
r

-----w

LARGE TIME IEPOS TS

7^
-LLL m i
OCT

NOV
1985

DEC

1 1 1

111

JUL
1986

AUG

111

111

1111

111

111

MIL

JAN

FEB

MAR

APR

MAY

JUN

LATEST DATA PLOTTED WEEK ENDING. NOVEMBER 17,

A

280

IN I.

280

Mil -LLL -LLL MIL
SEP

OCT

NOV

DEC

1988

1/ TIME DEPOSITS ISSUED IN DENOMINATIONS OF LESS THAN $100,000
2/ TIME DEPOSITS ISSUED IN DENOMINATIONS OF $100,000 OR MORE


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

290

TTTT

w 'N

in r

:

.

f

290

PREPARED BY FEDERAL RESERVE BANK OF ST, LOUIS

^

IT

f

2

11

l
11

805

1—
BILLIONS
792.5
791.7
793.3
794.4
796.1
796.2

l l

i
i

M il.

795

:

IN I
810

805

\
-

VJS

vH
V\

J

' TTTT

1
L

815

r
■/—

T

800

N il

810

-1
1
~ lSSft
“ OCT. 13
—
20
>V. 273
10
17

C

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

l

COMMERCIAL BANK
TOTAL TIME DEPOSITS

V

790

I

----7

785

780
780

*1 1 1 -LI 1 1111 ■1.11 -LLL .1111
111 111 -Li 1 1 111 111 Jill -LLL -LLL ■1 1 1 l'8
7 21 4 18 2 is y
SEP

1985

OCT

NOV

DEC

1986

LATEST DATA PLOTTED WEEK ENDING; NOVEMBER 17,

1986

TOTAL TIME IS THE SUM OF SAVINGS DEPOSITS, SMALL TIME DEPOSITS AND LARGE TIME DEPOSITS.

total time

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
4/14/86
5/19/86
6/16/86
7/14/06
8/18/86
9/15/86

-2.0

-2.3
-1.7

-6.3
-4.1
-3.0
-1 .9
-2.2
-1.5

-2. 1
-0.8
-i .5
-0.7

0.4

-oil
0.6

-0.5
0.4

1


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-3.6
-4.5
-3.4
-2.8

<
Dh-

11/17/86

6.5
4. 1
2.5
2.3
2.0
2. 1
1.5
1.6

00

10/20/86

DEPOSITS

COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS
ENDING,
11/18/85
2/17/86 4/14/86 5/19/86 6/16/86 7/14/86 8/18/86
9/15/86

-0.4

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

9

10

BORROWINGS FROM FEDERAL RESERVE BANKS
BILLIONS OF DOLLARS

AVERAGES OF DAILY FIGURES

BILLIONS

of dollars

0.0
1986

TOTAL BORROWINGS

LATEST DATA PLOTTED WEEK ENDING. NOVEWEH 26,

MILLIONS

5

1082

26

639

1986
BILLIONS OF DOLLARS
—l---------- 1------------- 2-5

BILLIONS OF DOLLARS
2-5 ------------1/II
OCT.

22

^SwTnI!*50^

2 16 90 19 27 11 29 8 22
OCT
NOV
DEC
JAN
1985

8 19
FEB

5 19
MAR

2 ie 30 M 28 II 25
APR
MAY
JUN
1

LATEST DATA PLOTTED WEEK END INOi NOVEMBER 26,

9 29

6 20
AUG

9 IT
SEP

1986

1/ 93.767 FOR 11/27/65


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

COMMERCIAL PAPER OF NONFINANCIAL COMPANIES
NOT SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

95 ----------- ,---------,-----

- JLSK
OCT.IS
NOV.

5

2 IS SO II 27 II 25 9 22
OCT
NOV
DEC
JAN
1885

1 It
FEB

» n
MAR

Ml N 14 a II U 9 25
APR
MAY
JUN
JUL
,980

LATEST DATA PLOTTED WEEK ENDINGi NOVEMBER 19,

6 20
AUG

3 17
SEP

1

15 29 12 29 10 24

ISSB

BUSINESS LOANS v
( COMMERCIAL AND INDUSTRIAL )
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

’HE FOUR
NOVEMBER
THE FOUR
— SEP. 17,
_ JUN.
MAY
FEB.
NOV.

18,
21,
19,
20,

BILLIONS OF DOLLARS

——n--------- 264

ANNUAL RATES
AVERAGE OF
'EKS ENDING
I. 1086 FROM
lEKS ENDING-.
1086
1986
1986
1986

6.1

-

6.7
3.3
2.7
1.7

2.0
2.3

OCT. 15

260,277
258,301
263,877

2 le 30 15 27 II 28 8 22
OCT
NOV
DEC
JAN
1985

6 19
FEB

5 19
MAR

2 10 30 14 21 II
APR
MAY
JUN
|

LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 19,

0 28

6 20
AUG

111 1 I
3 17 I
SEP

-LL1-LLJ

18 20 12 26 10 24

1986

1/ BUSINESS LOANS INCLUDE BANKERS' ACCEPTANCES AND COMMERCIAL PAPER.
2/ BANKS WITH DOMESTIC ASSETS GREATER THAN 01.4 BILLION


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

11

Characteristics of Short-Term Commercial and Industrial
Loans Made by Commercial Banks at Below Prime Rate

Loan type

Percent of
below-primerate loans
made

Average
maturity
(days)

Average
discount
from prime
(basis points)

February 3-7 Survey:
Fixed rate
Floating rate

74.5%
19.7,

18
78

76
75

May 5-9 Survey:
Fixed rate
Floating rate

74.3
18.8

17
68

100
77


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Federal Reserve Bank of St. Louis