FEDERAL RESERVE statistical release

E.2

For Immediate Release
December 15, 1997

SURVEY OF TERMS OF BUSINESS LENDING MADE DURING AUGUST 4-8, 1997
TABLE 1
Commercial and Industrial loans made by all commercial banks1
Risk2 and
maturity/repricing
interval3 of loans

WeightedAverage
Effective
Loan Rate4
(percent)

Percent of Amount of Loans
Amount of
Loans
($ millions)

Average
Loan Size
($ thousands)

WeightedAverage
Maturity5

Secured by
Collateral

Callable

Subject to
Prepayment
Penalty

Made Under
Commitment

Most
Common
Base
Pricing Rate6

Days
1 All C&I loans
2
Minimal risk
3
Low risk
4
Moderate risk
5
Acceptable risk

6.81
6.08
6.29
6.94
7.50

141,231
11,855
36,714
54,458
20,698

882
1,365
1,866
798
554

266
75
193
299
338

29.5
23.0
18.1
31.9
41.8

19.9
35.0
12.4
29.0
9.2

31.8
63.1
30.1
31.8
22.5

73.4
75.0
60.4
82.1
78.5

Fed Funds
Fed Funds
Fed Funds
Fed Funds
Foreign

6 Zero interval
7
Minimal risk
8
Low risk
9
Moderate risk
10 Acceptable risk

8.16
7.63
7.81
8.41
8.91

27,561
336
3,895
10,078
4,759

332
127
534
265
207

614
458
561
879
539

41.2
46.8
22.1
47.4
55.5

15.3
17.2
30.5
18.4
16.0

18.2
6.6
5.1
6.6
27.2

80.3
95.9
96.0
92.4
96.5

Prime
Prime
Prime
Prime
Prime

11 Daily
12 Minimal risk
13 Low risk
14 Moderate risk
15 Acceptable risk

6.22
5.94
6.01
6.36
6.60

64,941
9,850
21,578
23,189
5,416

4,053
22,644
8,396
4,284
1,992

39
17
23
44
75

19.7
22.2
14.1
22.9
17.1

25.6
40.7
12.0
40.4
4.4

33.8
69.2
28.3
34.3
5.0

62.6
72.7
42.0
75.8
54.2

Fed Funds
Fed Funds
Fed Funds
Fed Funds
Fed Funds

16 2 to 30 days
17 Minimal risk
18 Low risk
19 Moderate risk
20 Acceptable risk

6.72
6.44
6.12
6.71
7.40

21,527
744
5,050
9,058
5,058

1,254
2,752
2,887
1,274
858

239
303
283
127
281

30.7
30.8
24.4
25.0
47.3

15.9
7.0
6.7
30.1
3.6

33.9
50.2
36.4
39.0
24.4

81.0
80.9
78.0
85.6
78.3

Foreign
Foreign
Foreign
Foreign
Other

21 31 to 365 days
22 Minimal risk
23 Low risk
24 Moderate risk
25 Acceptable risk

6.70
6.60
6.32
6.69
7.13

23,616
859
5,466
10,281
5,040

795
201
895
835
1,683

387
374
369
329
469

35.6
14.2
24.7
34.3
47.4

12.7
2.1
6.6
15.4
12.0

44.3
30.3
52.5
49.6
36.2

91.4
89.4
90.8
92.7
87.7

Foreign
Foreign
Foreign
Foreign
Foreign

65.5
44.2
17.7
84.4
68.6

3.3
6.8
3.1
2.5
1.7

3.6
0.5
3.4
3.8
5.1

35.0
62.3
58.0
18.3
68.9

Prime
Other
Other
Prime
Prime

83.0
68.1
40.2
19.9

30.8
24.0
13.8
21.3

5.2
15.1
31.4
34.5

74.9
86.4
78.8
70.0

Prime
Prime
Foreign
Fed Funds

Months
26 Over 365
27 Minimal risk
28 Low risk
29 Moderate risk
30 Acceptable risk

8.44
7.72
7.54
8.72
8.91

2,686
55
650
1,593
268

240
57
378
348
174

WeightedAverage Risk
Rating2

Size and base rate

52
43
50
54
43
WeightedAverage
Maturity/
Repricing
Interval3
Days

31
32
33
34

Size ($thousands)
1 - 99
100 - 999
1,000 - 9,999
10,000+

9.73
8.74
7.23
6.37

2,594
10,518
33,639
94,481

3.1
3.2
3.0
2.5

141
79
46
33

Average Size
($thousands)
Base rate6
35
36
37
38
39

Prime7
Fed funds
Other domestic
Foreign
Other

Footnotes appear on the last page.

9.06
6.02
6.13
6.67
6.82

24,187
50,391
13,315
39,020
14,078

3.1
2.4
2.6
2.8
3.0

104
7
23
33
103

60.0
19.7
6.3
33.0
24.6

21.6
29.6
37.0
6.3
4.6

9.5
41.0
34.8
42.4
4.2

73.7
56.4
75.0
92.9
77.7

213
10,333
2,767
4,280
503

E.2

For Immediate Release
December 15, 1997

SURVEY OF TERMS OF BUSINESS LENDING MADE DURING AUGUST 4-8, 1997
TABLE 2
Commercial and Industrial loans made by large domestic banks1

Risk2 and
maturity/repricing
interval3 of loans

WeightedAverage
Effective
Loan Rate4
(percent)

Percent of Amount of Loans
Amount of
Loans
($ millions)

Average
Loan Size
($ thousands)

WeightedAverage
Maturity5

Secured by
Collateral

Callable

Subject to
Prepayment
Penalty

Made Under
Commitment

Most
Common
Base
Pricing Rate6

Days
1 All C&I loans
2
Minimal risk
3
Low risk
4
Moderate risk
5
Acceptable risk

7.05
6.24
6.47
7.07
7.45

57,683
1,014
11,758
22,148
12,339

1,057
1,844
3,304
1,018
670

392
401
449
439
321

31.4
9.8
23.6
37.0
39.0

19.0
0.9
34.6
24.7
7.3

8.9
59.8
16.4
7.8
6.1

65.3
97.0
70.3
66.1
68.4

Prime
Domestic
Domestic
Prime
Prime

6 Zero interval
7
Minimal risk
8
Low risk
9
Moderate risk
10 Acceptable risk

8.18
7.33
7.47
8.13
8.88

15,246
91
2,740
4,990
2,449

492
353
1,833
387
220

591
748
496
700
676

39.0
29.3
14.5
50.4
59.7

15.1
4.1
34.3
15.6
17.7

3.7
24.0
3.7
4.3
7.1

68.4
99.9
98.0
91.9
96.2

Prime
Prime
Prime
Prime
Prime

11 Daily
12 Minimal risk
13 Low risk
14 Moderate risk
15 Acceptable risk

6.36
6.52
6.01
6.45
6.73

20,442
311
4,286
8,494
3,551

2,196
2,747
5,141
2,649
2,081

107
327
147
110
98

26.3
1.6
39.0
33.0
17.5

33.6
1.5
58.6
44.1
5.0

4.1
50.3
7.4
3.8
0.4

52.6
90.4
39.7
48.1
37.2

Fed Funds
Domestic
Fed Funds
Fed Funds
Fed Funds

16 2 to 30 days
17 Minimal risk
18 Low risk
19 Moderate risk
20 Acceptable risk

6.80
5.88
6.18
6.78
7.35

11,709
406
2,516
4,231
3,626

1,460
4,678
4,282
1,358
1,091

270
208
399
164
314

25.5
10.4
21.2
21.5
37.7

9.1
0.0
11.3
15.3
3.7

16.5
71.2
34.1
9.2
10.7

75.4
99.9
80.9
75.6
72.5

Other
Foreign
Domestic
Other
Other

21 31 to 365 days
22 Minimal risk
23 Low risk
24 Moderate risk
25 Acceptable risk

6.70
6.07
6.22
6.72
7.09

7,887
180
1,667
2,984
2,427

2,168
2,263
3,033
1,769
2,740

538
630
723
640
273

29.8
14.1
9.8
26.0
49.3

7.5
-17.7
6.8
2.2

21.7
76.7
38.1
25.1
6.6

84.9
100.0
88.1
84.6
78.5

59.5
-0.7
83.2
57.1

0.8
--1.2
0.1

3.7
-2.4
4.1
4.6

33.5
-65.3
13.6
73.7

Prime
-Other
Prime
Prime

82.2
66.1
39.3
20.7

36.5
21.3
13.2
21.1

6.0
9.6
10.8
8.0

89.1
87.5
70.7
58.5

Prime
Prime
Prime
Fed Funds

Foreign
Foreign
Foreign
Foreign
Foreign

Months
26 Over 365
27 Minimal risk
28 Low risk
29 Moderate risk
30 Acceptable risk

8.21
-7.20
8.61
8.56

2,147
-513
1,376
183

1,908
-8,597
2,754
446

WeightedAverage Risk
Rating2

Size and base rate

47
-40
50
39
WeightedAverage
Maturity/
Repricing
Interval3
Days

31
32
33
34

Size ($thousands)
1 - 99
100 - 999
1,000 - 9,999
10,000+

9.40
8.77
7.46
6.51

950
5,354
16,844
34,535

3.5
3.3
3.1
2.9

41
52
55
75

Average Size
($thousands)
Base rate6
35
36
37
38
39

Prime7
Fed funds
Other domestic
Foreign
Other

Footnotes appear on the last page.

8.91
6.19
6.10
6.69
6.62

14,831
11,359
9,890
9,882
11,721

3.2
3.0
2.6
3.1
3.0

149
14
14
52
69

57.0
32.4
6.4
35.0
15.9

18.1
40.0
31.8
5.1
2.7

5.2
2.6
21.6
14.7
3.8

67.0
40.4
67.8
73.9
77.8

337
8,615
6,242
3,101
2,639

E.2

For Immediate Release
December 15, 1997

SURVEY OF TERMS OF BUSINESS LENDING MADE DURING AUGUST 4-8, 1997
TABLE 3
Commercial and Industrial loans made by small domestic banks1

Risk2 and
maturity/repricing
interval3 of loans

WeightedAverage
Effective
Loan Rate4
(percent)

Percent of Amount of Loans
Amount of
Loans
($ millions)

Average
Loan Size
($ thousands)

WeightedAverage
Maturity5

Secured by
Collateral

Callable

Subject to
Prepayment
Penalty

Made Under
Commitment

Most
Common
Base
Pricing Rate6

Days
1 All C&I loans
2
Minimal risk
3
Low risk
4
Moderate risk
5
Acceptable risk

8.10
7.75
7.22
8.20
8.85

12,910
666
2,979
5,304
1,986

136
85
219
127
118

531
239
474
612
633

56.4
66.5
33.6
57.5
78.5

18.7
18.3
9.4
20.5
12.1

29.2
6.0
37.0
26.0
30.2

64.0
63.8
49.7
68.4
77.7

Prime
Prime
Fed Funds
Prime
Prime

6 Zero interval
7
Minimal risk
8
Low risk
9
Moderate risk
10 Acceptable risk

9.12
8.60
8.93
8.97
9.64

4,810
140
741
2,560
981

98
59
137
107
88

766
288
816
901
602

74.0
82.2
55.8
72.1
93.3

24.8
27.4
24.1
23.3
15.5

6.6
0.4
3.6
3.9
18.8

87.4
90.1
87.3
85.9
92.6

Prime
Prime
Prime
Prime
Prime

11 Daily
12 Minimal risk
13 Low risk
14 Moderate risk
15 Acceptable risk

6.87
5.97
5.99
6.24
6.86

3,226
170
1,076
1,066
310

694
1,040
1,180
763
383

134
306
28
68
160

26.1
58.6
1.5
9.3
23.0

1.4
1.2
0.2
1.0
1.7

82.2
12.1
90.7
85.5
70.3

16.1
87.9
7.4
12.8
27.6

Fed Funds
Foreign
Fed Funds
Fed Funds
Fed Funds

16 2 to 30 days
17 Minimal risk
18 Low risk
19 Moderate risk
20 Acceptable risk

7.64
7.90
6.86
8.10
8.47

1,904
198
486
632
287

260
1,506
785
199
129

250
16
288
254
510

58.0
54.0
50.9
70.4
75.6

23.4
26.4
1.3
35.7
13.6

17.1
-11.8
29.1
10.7

75.8
52.6
65.6
88.5
76.1

Prime
Prime
Other
Prime
Prime

21 31 to 365 days
22 Minimal risk
23 Low risk
24 Moderate risk
25 Acceptable risk

7.75
8.70
7.33
8.07
8.41

2,198
120
511
677
286

98
29
107
76
215

500
168
598
292
1,113

50.2
75.1
36.7
51.4
83.8

21.4
14.7
7.2
16.2
6.9

19.5
16.1
8.2
26.1
56.4

75.2
24.2
71.6
70.2
85.3

Foreign
Prime
Foreign
Other
Foreign

91.1
83.5
80.6
96.4
96.2

14.0
12.9
15.9
11.4
6.0

1.8
--1.8
7.3

37.0
28.9
25.0
45.7
51.5

Other
Other
Other
Other
Other

84.4
78.9
65.3
16.9

27.3
27.3
17.8
8.4

3.8
8.8
31.7
55.0

65.5
80.4
70.5
42.9

Prime
Prime
Prime
Fed Funds

Months
26 Over 365
27 Minimal risk
28 Low risk
29 Moderate risk
30 Acceptable risk

9.41
9.29
8.88
9.43
9.82

507
29
127
207
72

51
31
76
51
65

WeightedAverage Risk
Rating2

Size and base rate

77
36
94
82
56
WeightedAverage
Maturity/
Repricing
Interval3
Days

31
32
33
34

Size ($thousands)
1 - 99
100 - 999
1,000 - 9,999
10,000+

9.98
9.14
8.09
6.44

1,583
3,571
3,740
4,016

3.0
3.0
2.8
2.6

205
139
55
22

Average Size
($thousands)
Base rate6
35
36
37
38
39

Prime7
Fed funds
Other domestic
Foreign
Other

Footnotes appear on the last page.

9.48
5.98
7.14
6.98
8.05

6,091
2,894
411
1,621
1,894

3.0
2.7
2.2
2.8
2.6

35
17
310
61
343

79.5
6.6
36.8
48.5
69.1

24.6
7.6
52.5
9.1
17.5

14.2
84.6
-28.6
2.6

76.2
16.1
78.3
92.1
71.3

92
2,792
141
1,255
81

E.2

For Immediate Release
December 15, 1997

SURVEY OF TERMS OF BUSINESS LENDING MADE DURING AUGUST 4-8, 1997
TABLE 4
Commercial and Industrial loans made by U.S. branches and agencies of foreign banks1

Risk2 and
maturity/repricing
interval3 of loans

WeightedAverage
Effective
Loan Rate4
(percent)

Percent of Amount of Loans
Amount of
Loans
($ millions)

Average
Loan Size
($ thousands)

WeightedAverage
Maturity5

Secured by
Collateral

Callable

Subject to
Prepayment
Penalty

Made Under
Commitment

Most
Common
Base
Pricing Rate6

Days
1 All C&I loans
2
Minimal risk
3
Low risk
4
Moderate risk
5
Acceptable risk

6.38
5.95
6.07
6.59
7.17

70,639
10,174
21,977
27,006
6,373

6,558
32,761
8,710
5,732
2,970

126
33
37
136
286

23.0
21.5
13.0
22.6
35.6

20.8
39.5
1.0
34.2
12.1

50.6
67.1
36.5
52.6
51.8

81.7
73.6
56.5
97.9
98.3

Fed Funds
Fed Funds
Fed Funds
Foreign
Foreign

6 Zero interval
7
Minimal risk
8
Low risk
9
Moderate risk
10 Acceptable risk

7.51
-8.05
8.40
8.43

7,505
-414
2,527
1,329

2,593
-1,125
2,039
1,759

562
-783
1,537
227

24.8
-11.6
16.4
20.0

9.8
-16.9
18.9
13.0

55.1
-16.9
13.7
70.4

99.9
-98.6
100.0
100.0

Fed Funds
-Prime
Foreign
Foreign

11 Daily
12 Minimal risk
13 Low risk
14 Moderate risk
15 Acceptable risk

6.11
5.92
6.01
6.32
6.25

41,273
9,369
16,216
13,630
1,556

19,978
59,072
19,655
16,819
7,628

4
2
1
10
4

15.9
22.3
8.3
17.6
15.0

23.6
42.8
0.4
41.3
3.7

44.1
70.9
29.7
49.2
2.6

71.2
71.8
44.9
98.0
98.5

Fed Funds
Fed Funds
Fed Funds
Fed Funds
Fed Funds

16 2 to 30 days
17 Minimal risk
18 Low risk
19 Moderate risk
20 Acceptable risk

6.39
6.00
5.85
6.43
7.28

7,914
140
2,049
4,195
1,145

4,340
2,695
3,776
5,110
3,330

189
875
123
74
132

31.8
57.4
22.1
21.6
70.6

24.2
-2.4
44.3
0.7

63.5
60.2
45.0
70.5
71.2

90.6
65.7
77.4
95.1
97.2

Foreign
Foreign
Foreign
Foreign
Foreign

21 31 to 365 days
22 Minimal risk
23 Low risk
24 Moderate risk
25 Acceptable risk

6.53
6.32
6.22
6.53
7.01

13,531
559
3,288
6,620
2,327

3,752
6,994
4,217
3,786
2,975

283
336
155
194
593

36.7
1.3
30.4
36.2
41.0

14.2
-0.9
19.2
22.8

61.3
18.4
66.7
63.0
64.7

97.8
100.0
95.2
98.7
97.6

Foreign
Foreign
Foreign
Foreign
Foreign

60.4
-----

------

30.1
-----

100.0
-----

Prime
-----

56.5
50.4
34.1
19.6

32.9
25.5
13.4
22.4

30.7
47.5
57.6
49.0

96.4
96.6
91.7
78.9

Months
26 Over 365
27 Minimal risk
28 Low risk
29 Moderate risk
30 Acceptable risk

8.53
-----

32
-----

673
-----

WeightedAverage Risk
Rating2

Size and base rate

34
----WeightedAverage
Maturity/
Repricing
Interval3
Days

31
32
33
34

Size ($thousands)
1 - 99
100 - 999
1,000 - 9,999
10,000+

8.61
7.75
6.69
6.27

61
1,593
13,055
55,930

3.1
3.1
2.9
2.4

14
36
33
7

Prime
Foreign
Foreign
Fed Funds
Average Size
($thousands)

Base rate6
35
36
37
38
39

Prime7
Fed funds
Other domestic
Foreign
Other

Footnotes appear on the last page.

8.98
5.97
6.09
6.65
6.88

3,265
36,139
3,015
27,517
463

2.9
2.2
2.5
2.7
2.9

12
4
13
25
30

37.1
16.8
2.1
31.4
64.2

31.7
28.4
52.2
6.6
--

20.5
48.7
82.9
53.1
19.6

99.8
64.6
98.2
99.7
100.0

1,028
14,331
9,424
5,933
4,137

NOTES
The Survey of Terms of Business Lending collects data on gross loan extensions made during the first full
business week in the mid-month of each quarter. The authorized panel size for the survey is 348
domestically chartered commercial banks and 50 U.S. branches and agencies of foreign banks. The sample
data are used to estimate the terms of loans extended during that week at all domestic commercial banks
and all U.S. branches and agencies of foreign banks. Note that the terms on loans extended during the
survey week may differ from those extended during other weeks of the quarter. The estimates reported here
are not intended to measure the average terms on all business loans in bank portfolios.

1. As of December 31, 1996, assets of most of the large banks were at least $7.0 billion. Median total
assets for all insured banks were roughly $62 million. Assets at all U.S. branches and agencies
averaged 1.3 billion.
2. A complete description of these risk categories is available from the Banking and Money Market
Statistics Section, mail stop 81, the Federal Reserve Board, Washington, DC 20551. The category
"Moderate risk" includes the average loan, under average economic conditions, at the typical lender.
The category "Acceptable risk" may include a small volume of special mention or classified loans. The
weighted-average risk ratings published for loans in rows 31-39 are calculated by assigning a value of
"1" to minimal risk loans; "2" to low risk loans; "3" to moderate risk loans, "4" to acceptable risk loans;
and "5" to special mention and classified loans. These values are weighted by loan amount and exclude
loans with no risk rating. Some of the loans in table rows 1, 6, 11, 16, 21, 26 and 31 to 39 are not rated
for risk.
3. The "maturity/repricing" interval measures the period from the date the loan is made until it first may be
repriced or matures. For floating-rate loans that are subject to repricing at any time--such as many
prime-based loans--the "maturity/ repricing" interval is zero. For floating-rate loans that have a
scheduled repricing interval, the "maturity/repricing" interval measures the number of days between the
date the loan is made and the date on which it is next scheduled to reprice. For loans having rates that
remain fixed until the loan matures (fixed-rate loans), the "maturity/repricing" interval measures the
number of days between the date the loan is made and the date on which it matures. Loans that reprice
daily mature or reprice on the business day after they are made. Owing to weekends and holidays, such
loans may have "maturity/repricing" intervals in excess of one day; such loans are not included in the 2
to 30 day category.
4. Effective (compounded) annual interest rates are calculated from the stated rate and other terms of the
loans and weighted by loan amount. The standard error of the loan rate for all C&I loans in the current
survey (line 1, column 1) is 0.15 percentage points. The chances are about two out of three 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 the universe of all banks.
5. Average maturities are weighted by loan amount and exclude loans with no stated maturities.
6. The most common base pricing rate is that used to price the largest dollar volume of loans. Base pricing
rates include the prime rate (sometimes referred to as a bank’s "base" or "reference" rate); the federal
funds rate; domestic money market rates other than the prime rate and the federal funds rate; foreign
money market rates; and other base rates not included in the foregoing classifications.
7. For the current survey, the average reported prime rate, weighted by the amount of loans priced relative
to a prime base rate, was 0.01 percent for all banks; 0.01 percent for large domestic banks 0.01
percent for small domestic banks; and 0.01 percent for U.S. branches and agencies of foreign banks.