Figure 15. Changes in supply conditions at selected banks for consumer lending and for consumer installment loans, 1996-2008.
Data are plotted as curves. There are two panels. In the top panel, the curve for credit card loans begins in 1996 at about 25 percent, rises to reach about 50 percent in late 1996, and declines, on balance, to reach about negative 3 percent in late 2000. It rises to reach 20 percent by 2001 and then moves in a range of between 10 and 20 percent through mid-2003. It declines, on balance, to about negative 8 percent in mid-2005 and then fluctuates between positive and negative 5 percent through early 2007, when it drops to negative 11 percent, reverses, and begins to trend sharply up. It peaks at nearly 67 percent in the second quarter of 2008, then drops slightly to end 2008 at about 58 percent. The curve for consumer loans other than credit card loans begins in the first quarter of 1996 at about 15 percent, rises to a peak of about 25 percent in late 1996, then declines, on balance, to about zero in the third quarter of 1999. It rises to reach about 19 percent in early 2001, then moves in a range of between about 10 and 20 percent through mid-2003, when it declines to about 2 percent. Continuing this downward trend, it declines, on balance, to reach negative 10 percent in mid-2005; it rises to zero in early 2006, moving in a range between zero and negative 5 percent through early 2007 and rising steeply, to peak at about 67 percent in mid-2008, and ending the year at about 47 percent.
NOTE: The note and the source are the same as for figure 7, which states that the data are drawn from a survey generally conducted four times per year; the last observation is from the January 2009 survey, which covers 2008:Q4. Net percentage is the percentage of banks reporting an increase in demand or a tightening of standards less, in each case, the percentage reporting the opposite. The definition for firm size suggested for, and generally used by, survey respondents is that large and middle-market firms have annual sales of $50 million or more.
SOURCE: Federal Reserve Board, Senior Loan Officer Opinion Survey on Bank Lending Practices.
