FRB: February 2008 Statistical Supplement--Terms of Lending at Commercial Banks, Survey of Loans Made, November 5-9, 2007--Continued

Statistical Supplement | February 2008

Statistical Supplement to the Federal Reserve Bulletin, February 2008

4.23 Terms of Lending at Commercial Banks, Survey of Loans Made, November 5-9, 2007--Continued
F. Commercial and industrial loans by date pricing terms were set and commitment status
Date pricing terms were set and commitment status		Weighted-average effective loan rate⁴ (percent)	Amount of loans (millions of dollars)	Average loan size (thousands of dollars)	Weighted-average risk rating³	Weighted-average maturity repricing interval²	Percent of amount of loans
Date pricing terms were set and commitment status		Weighted-average effective loan rate⁴ (percent)	Amount of loans (millions of dollars)	Average loan size (thousands of dollars)	Weighted-average risk rating³	Days	Secured by collateral	Subject to prepayment penalty	Prime based
	All commercial banks
1	During survey week	5.82	37,170	829	2.7	134	26.2	36.4	13.6
2	Not under commitment	5.47	16,811	784	2.6	99	19.6	40.3	10.9
3	Informal commitment	5.59	13,776	895	2.5	75	13.4	35.1	8.4
4	Formal commitment	7.17	6,584	820	3.2	347	69.8	29.0	31.4

	Prior to survey week⁸
5	Up to 90 days	6.58	8,769	358	2.8	219	45.9	31.6	37.2
6	91 to 365 days	7.15	18,102	372	3.1	119	40.8	15.2	41.7
7	More than 365 days	6.30	15,322	630	3.1	141	50.1	28.5	26.7

	Domestic banks
8	During survey week	6.64	13,734	323	2.9	328	62.6	13.1	35.9
9	Not under commitment	5.95	6,890	333	2.3	220	43.5	10.6	26.6
10	Informal commitment	7.38	1,976	141	3.2	421	91.0	2.8	58.0
11	Formal commitment	7.31	4,868	626	3.5	442	78.2	20.6	40.0

	Prior to survey week⁸
12	Up to 90 days	7.01	6,399	265	3.2	254	57.8	16.1	49.5
13	91 to 365 days	7.37	14,626	307	3.2	138	42.3	11.1	49.9
14	More than 365 days	6.42	11,767	509	3.1	177	50.6	27.4	32.3

	Large domestic banks
15	During survey week	6.25	9,014	668	3.0	257	50.7	18.4	25.6
16	Not under commitment	5.59	5,038	580	2.4	140	30.8	13.1	19.1
17	Informal commitment	6.86	346	131	2.9	106	74.7	8.1	40.8
18	Formal commitment	7.11	3,629	1,672	3.7	435	76.1	26.7	33.1

	Prior to survey week⁸
19	Up to 90 days	6.84	5,022	338	3.2	163	51.6	17.5	48.1
20	91 to 365 days	7.36	13,306	439	3.2	143	39.2	11.7	49.0
21	More than 365 days	6.37	11,053	704	3.1	184	49.5	29.1	30.7

	Small domestic banks
22	During survey week	7.38	4,720	163	2.7	462	85.3	2.9	55.5
23	Not under commitment	6.92	1,852	154	2.1	439	78.0	4.1	47.0
24	Informal commitment	7.50	1,630	143	3.3	487	94.5	1.6	61.6
25	Formal commitment	7.89	1,239	221	2.9	463	84.2	2.8	60.2

	Prior to survey week⁸
26	Up to 90 days	7.63	1,377	148	3.2	587	80.3	11.0	54.5
27	91 to 365 days	7.52	1,320	76	3.2	88	73.6	5.4	59.1
28	More than 365 days	7.32	714	97	3.3	69	67.1	2.4	57.6

	Foreign banks
29	During survey week	5.33	23,436	9,986	2.6	21	4.8	50.0	.6
30	Not under commitment	5.14	9,921	13,350	2.7	15	3.0	60.8	.0
31	Informal commitment	5.29	11,800	8,726	2.3	17	.4	40.5	.2
32	Formal commitment	6.78	1,716	6,823	2.4	80	45.9	52.8	7.1

	Prior to survey week⁸
33	Up to 90 days	5.43	2,370	7,268	1.9	126	13.9	73.7	4.0
34	91 to 365 days	6.24	3,476	3,546	2.5	38	34.7	32.3	7.3
35	More than 365 days	5.90	3,555	2,933	2.9	22	48.6	32.2	8.3

Note. 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. The data in this table also appear in the Board's E.2 statistical release.

1. As of March 31, 2003, assets of the large banks were at least $3.7 billion. Median total assets for all insured banks were roughly $93 million. Assets at all U.S. branches and agencies averaged $3.3 billion.

2. 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. Return to table

3. A complete description of these risk categories is available on the Board's website under Reporting Forms. The category "Moderate risk" includes the average loan, under average economic conditions, at the typical lender. The "Other" category includes loans rated "Acceptable" as well as special mention or classified loans. The weighted-average risk rating published for loans in rows 31-36 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 31-36 are not rated for risk. Return to table

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 commercial and industrial loans in the current survey (line 1, column 1) is 0.19 percentage point. 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. Return to table

5. Average maturities are weighted by loan amount and exclude loans with no stated maturities.

6. For loans made under formal commitments, the average time interval between the date on which the loan pricing was set and the date on which the loan was made, weighted by the loan amount. For loans under informal commitment, the time interval is zero.

7. Prime-based loans are based on the lending bank's own prime rate, any other lender's prime rate, a combination of prime rates, or a publicly reported prime rate. Loans with "other" base rates include loan rates expressed in terms of any other base rate (e.g., the federal funds rate or LIBOR) and loans for which no base rate is used to determine the loan rate.

8. For loans made under formal commitments. Return to table

* The number of loans was insufficient to provide a meaningful value.

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Last update: March 19, 2008