FEDERAL RESERVE statistical release

E.2

For Immediate Release
March 11, 1998

SURVEY OF TERMS OF BUSINESS LENDING, FEBRUARY 2-6, 1998
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

6.87
6.10
6.32
7.04
7.33

124,225
12,286
32,793
41,859
23,328

693
1,743
1,436
579
608

351
157
328
444
281

37.8
36.0
38.6
35.9
35.1

10.8
1.9
8.4
15.5
9.8

30.9
67.4
47.5
19.8
16.2

74.5
81.3
67.7
78.6
78.8

Foreign
Foreign
Foreign
Foreign
Fed Funds

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

8.62
7.19
7.50
8.60
9.57

19,903
711
2,809
7,687
4,149

249
372
377
204
174

609
369
421
863
637

53.4
22.7
38.1
60.6
70.5

14.9
4.9
16.8
19.7
17.0

8.4
44.7
8.0
10.7
8.1

74.7
69.8
91.8
93.8
95.2

Prime
Prime
Prime
Prime
Prime

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

6.27
6.00
5.98
6.50
6.42

49,265
7,112
15,773
14,008
8,915

1,796
5,933
6,769
1,299
2,340

113
18
37
258
85

33.9
39.2
47.6
29.5
11.9

9.5
0.5
9.9
15.8
4.3

32.9
73.1
54.0
11.1
5.2

62.2
72.8
52.5
65.6
56.6

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

6.58
5.97
6.24
6.55
7.19

37,169
3,283
9,527
13,879
6,625

1,521
3,128
2,770
2,069
1,545

283
86
325
267
230

31.4
36.3
26.2
23.6
38.2

10.8
3.3
4.5
14.4
12.2

41.2
71.5
53.9
30.2
30.5

88.7
99.4
81.7
86.3
92.8

Foreign
Foreign
Foreign
Foreign
Foreign

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

6.86
6.38
6.58
7.00
7.04

13,777
1,044
3,605
4,350
3,153

431
485
468
398
833

468
1,168
300
394
390

35.9
23.7
21.3
35.9
41.5

8.4
4.6
5.4
12.5
9.6

34.2
30.5
43.7
35.1
26.4

81.2
91.9
71.8
80.5
89.2

Foreign
Foreign
Foreign
Foreign
Foreign

74.8
69.6
78.5
73.9
69.7

3.7
12.8
3.8
2.0
2.0

13.2
18.9
12.2
11.1
33.8

62.3
10.7
89.7
45.2
81.7

Prime
Other
Prime
Prime
Prime

83.9
69.2
38.7
30.8

29.6
22.6
13.2
7.2

4.3
14.4
29.3
35.2

76.7
87.6
82.6
68.7

Prime
Prime
Foreign
Fed Funds

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

8.33
8.96
7.93
8.46
8.89

3,354
43
1,010
1,643
367

252
66
576
317
197

WeightedAverage Risk
Rating2

Size and base rate

86
39
148
62
56
WeightedAverage
Maturity/
Repricing
Interval3
Days

31
32
33
34

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

9.70
8.64
7.24
6.33

3,074
11,111
34,334
75,707

3.1
3.2
2.9
2.6

155
93
81
47

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

Prime7
Fed funds
Other domestic
Foreign
Other

Footnotes appear on the last page.

9.08
6.14
6.16
6.47
6.95

22,039
33,767
13,294
38,958
16,167

3.1
2.8
2.5
2.5
2.7

153
9
14
38
161

67.3
22.8
9.2
46.7
30.7

20.3
5.4
28.1
6.3
5.8

9.4
29.5
27.8
53.6
10.1

79.4
46.5
74.8
95.4
75.2

187
7,273
2,972
3,730
387

E.2

For Immediate Release
March 11, 1998

SURVEY OF TERMS OF BUSINESS LENDING, FEBRUARY 2-6, 1998
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
6.11
6.22
7.12
7.63

59,650
4,056
11,774
24,649
10,316

934
5,248
2,978
896
562

434
398
300
590
352

31.9
7.5
21.6
37.3
38.5

12.5
0.7
17.4
14.1
7.6

12.1
36.3
19.6
10.0
7.7

72.6
88.9
74.1
76.8
74.0

Prime
Other
Domestic
Prime
Prime

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

8.33
6.57
7.02
8.34
9.19

14,516
485
1,953
5,469
2,556

477
1,831
1,202
390
208

584
341
430
877
558

47.4
8.2
30.7
56.7
67.5

9.8
0.8
10.9
14.0
14.4

7.0
32.0
8.1
11.7
3.4

69.3
59.0
91.0
97.2
96.2

Prime
Prime
Other
Prime
Prime

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

6.48
5.98
5.97
6.80
6.65

19,459
1,427
4,564
7,339
3,690

1,253
6,134
4,492
908
1,483

229
51
121
450
110

24.7
0.4
23.1
38.1
16.7

19.3
1.4
33.2
21.7
4.8

5.0
30.6
4.8
2.7
1.8

60.1
84.0
57.5
59.6
41.6

Fed Funds
Other
Domestic
Domestic
Fed Funds

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

6.61
5.99
6.06
6.51
7.38

17,433
1,382
3,514
8,339
2,722

1,522
9,873
5,049
3,514
1,566

316
162
338
320
328

23.1
17.6
11.6
18.7
34.8

10.4
0.0
7.5
9.7
5.6

19.8
54.1
35.3
12.6
12.8

85.9
100.0
83.3
81.2
91.1

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

6.75
6.33
6.16
6.80
7.61

5,835
668
1,377
1,931
1,059

1,777
10,139
3,514
1,230
1,432

612
1,660
306
575
593

31.5
1.8
22.5
34.5
45.3

4.4
-0.8
9.1
3.6

23.1
13.7
44.1
21.3
20.0

87.2
96.7
81.7
88.7
84.3

Foreign
Foreign
Foreign
Foreign
Foreign

63.9
-48.5
68.4
64.4

1.0
-0.0
0.1
0.2

18.2
-29.0
13.0
41.0

53.9
-73.8
40.6
92.5

Prime
-Other
Prime
Prime

80.7
68.1
39.5
20.7

39.2
20.9
12.4
10.2

5.5
9.2
12.7
12.5

91.1
90.0
76.6
67.2

Prime
Prime
Prime
Domestic

Foreign
Domestic
Domestic
Foreign
Foreign

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

8.02
-6.76
8.24
8.89

1,974
-330
1,346
213

1,218
-2,999
1,996
358

WeightedAverage Risk
Rating2

Size and base rate

56
-38
62
48
WeightedAverage
Maturity/
Repricing
Interval3
Days

31
32
33
34

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

9.45
8.71
7.51
6.48

1,126
5,851
17,161
35,512

3.4
3.3
3.0
2.7

41
52
50
86

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

Prime7
Fed funds
Other domestic
Foreign
Other

Footnotes appear on the last page.

8.89
6.14
6.13
6.72
6.76

14,446
9,712
10,863
11,225
13,405

3.2
3.0
2.5
2.8
2.7

132
8
13
47
120

63.7
19.4
8.7
34.9
22.9

13.9
16.4
23.7
7.2
3.8

9.2
1.8
18.5
20.2
9.5

73.2
42.6
73.4
91.1
77.5

313
7,774
5,405
3,043
1,242

E.2

For Immediate Release
March 11, 1998

SURVEY OF TERMS OF BUSINESS LENDING, FEBRUARY 2-6, 1998
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

8.12
7.95
7.38
8.69
8.40

11,902
479
3,797
3,337
2,339

114
88
230
81
140

837
568
1,266
665
659

64.6
49.4
42.9
71.7
91.4

15.9
39.3
11.7
22.9
6.2

18.9
8.2
31.3
16.5
19.7

74.7
71.8
63.5
75.6
91.4

Prime
Prime
Prime
Prime
Prime

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

9.17
8.23
8.57
9.21
9.69

3,739
74
751
1,614
874

80
51
135
71
84

650
525
373
739
814

80.3
55.8
58.7
82.9
96.8

21.3
23.8
27.5
24.1
9.2

8.9
4.8
6.8
7.2
18.5

84.9
77.8
94.5
80.0
88.3

Prime
Prime
Prime
Prime
Prime

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

7.22
8.16
6.20
8.15
8.56

2,466
89
1,378
341
138

254
122
2,103
168
174

209
681
48
399
475

31.1
59.9
3.4
51.6
83.0

9.6
20.7
0.5
21.0
5.6

45.8
20.0
71.7
34.5
4.8

52.6
79.6
27.9
63.2
90.8

Fed Funds
Prime
Fed Funds
Prime
Prime

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

7.35
6.87
6.71
7.44
7.98

2,057
151
473
505
501

233
269
271
165
319

254
138
147
362
350

47.2
22.0
40.2
44.1
80.2

15.0
66.0
4.4
24.5
1.8

19.7
5.2
19.2
29.1
31.5

85.4
89.3
61.0
86.7
95.4

Foreign
Foreign
Foreign
Foreign
Foreign

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

7.64
8.41
7.99
8.22
6.82

2,231
129
537
541
669

83
64
77
62
260

385
686
298
267
476

73.8
60.1
59.4
61.3
94.4

16.4
37.4
31.8
21.1
1.7

15.4
7.9
9.9
29.8
16.5

72.3
58.8
72.0
63.1
98.2

Foreign
Prime
Foreign
Other
Foreign

94.8
85.9
96.9
98.3
97.5

8.0
11.7
5.9
11.2
5.6

2.7
-0.3
2.5
20.1

73.2
12.8
97.4
64.3
55.6

Prime
Other
Prime
Other
Other

87.0
82.4
65.3
23.9

23.9
24.2
12.5
4.4

2.5
7.7
17.0
48.6

67.5
80.1
88.7
50.4

Prime
Prime
Foreign
Fed Funds

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

8.81
9.82
8.50
9.51
9.04

1,292
33
651
285
116

113
51
421
63
99

WeightedAverage Risk
Rating2

Size and base rate

134
47
207
60
72
WeightedAverage
Maturity/
Repricing
Interval3
Days

31
32
33
34

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

9.89
9.02
7.53
6.59

1,871
3,364
4,102
2,565

2.9
3.0
2.7
2.6

223
178
361
27

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

Prime7
Fed funds
Other domestic
Foreign
Other

Footnotes appear on the last page.

9.35
6.27
7.65
6.73
8.04

5,273
1,407
104
2,605
2,513

2.9
2.2
1.8
3.0
2.8

252
17
214
80
394

83.1
8.4
47.1
55.7
67.4

24.8
4.5
47.5
9.9
8.4

6.9
83.6
1.8
22.8
4.6

87.7
7.6
77.5
97.7
60.9

77
1,190
51
1,579
81

E.2

For Immediate Release
March 11, 1998

SURVEY OF TERMS OF BUSINESS LENDING, FEBRUARY 2-6, 1998
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

6.39
5.99
6.15
6.49
6.81

52,674
7,751
17,222
13,873
10,673

4,586
9,176
7,164
3,801
3,299

158
10
144
149
132

38.3
50.1
49.2
24.8
19.4

7.9
0.2
1.6
16.2
12.7

54.2
86.4
70.1
37.9
23.6

76.5
78.0
64.3
82.6
80.6

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

9.89
8.63
8.81
9.35
10.76

1,648
152
105
604
720

595
810
411
610
638

903
1,021
789
1,235
700

45.4
52.6
28.7
36.2
49.2

44.8
4.7
49.9
58.9
35.8

19.0
92.3
14.7
10.9
12.5

99.3
100.0
88.6
100.0
100.0

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

6.04
5.97
5.96
6.07
6.19

27,340
5,595
9,831
6,328
5,086

12,528
24,058
14,915
9,411
9,636

31
2
4
56
57

40.6
48.8
65.2
18.2
6.6

2.9
0.0
0.4
8.7
3.8

50.4
84.8
74.4
19.6
7.6

64.6
69.8
53.6
72.7
66.6

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

6.47
5.89
6.31
6.53
6.93

17,679
1,749
5,540
5,035
3,402

4,271
5,041
5,552
3,942
3,477

255
22
333
171
128

37.9
52.4
34.3
29.7
34.8

10.6
0.5
2.6
21.3
19.0

64.6
91.0
68.6
59.6
44.4

91.8
99.9
82.5
94.8
93.9

Foreign
Foreign
Foreign
Foreign
Foreign

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

6.67
5.45
6.48
6.86
6.71

5,712
246
1,691
1,878
1,424

2,985
3,467
4,499
2,788
3,046

354
87
296
245
202

25.5
63.7
8.3
29.9
13.8

9.0
-0.7
13.5
17.7

52.4
87.7
54.0
50.3
35.7

78.5
96.3
63.7
77.1
88.7

Foreign
Foreign
Foreign
Foreign
Foreign

22.3
-4.5
-14.6

------

57.0
-95.5
-37.4

90.7
-100.0
-100.0

Prime
-Foreign
-Prime

52.3
49.4
29.3
40.9

29.8
24.9
14.4
4.7

29.4
42.4
54.5
54.8

91.5
93.3
88.7
71.4

Foreign
Foreign
Foreign
Fed Funds
Fed Funds
Prime
Prime
Prime
Prime
Prime

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

8.26
-8.33
-8.50

88
-29
-38

414
-309
-373

WeightedAverage Risk
Rating2

Size and base rate

51
-60
-59
WeightedAverage
Maturity/
Repricing
Interval3
Days

31
32
33
34

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

8.61
7.76
6.80
6.17

77
1,896
13,071
37,630

3.1
3.1
2.9
2.5

86
69
36
13

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.

9.68
6.12
6.25
6.33
--

2,321
22,648
2,327
25,129
--

3.2
2.8
2.5
2.3
--

48
9
9
29
--

53.4
25.1
10.1
51.0
--

48.1
1.4
47.5
5.5
--

16.4
36.3
72.6
71.8
--

99.1
50.6
81.5
97.1
--

625
10,242
5,501
4,919
--

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 0.13 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 8.55 percent for all banks; 8.50 percent for large domestic banks 8.72
percent for small domestic banks; and 8.50 percent for U.S. branches and agencies of foreign banks.