Federal Reserve Bulletin

Profits and Balance Sheet Developments at U.S. Commercial Banks in 2005

Figure 19. Net percentage of selected domestic banks reporting increased spreads of rates on C&I loans over cost of funds, by size of borrower, 1990-2006. Data plotted as curves. The net percentage for large and middle-market borrowers starts a bit above 10 percent in 1990, rises to about 60 percent in early 1991, declines on balance to reach about negative 60 percent in late 1993, rises on balance to about negative 30 percent in early 1998, rises to about positive 50 percent by late 1998, drops to reach about positive 5 percent in early 1999, rises to about 55 percent by late 2000 and holds at about that level through late 2001, drops to the 30 percent to 40 percent level for 2002, then falls on balance to about negative 70 percent in 2005. The net percentage for small borrowers generally matched that for large and middle-market borrowers during periods of increase and decrease; however, the peaks for small borrowers were somewhat lower and the valleys somewhat less deep than those for large and middle-market borrowers.

Note: Refer to figure 5, general note and source note.  Return to article