Greenbook/Tealbook

Prefatory Note The attached document represents the most complete and accurate version available based on original copies culled from the files of the FOMC Secretariat at the Board of Governors of the Federal Reserve System. This electronic document was created through a comprehensive digitization process which included identifying the bestpreserved paper copies, scanning those copies, 1 and then making the scanned versions text-searchable. 2 Though a stringent quality assurance process was employed, some imperfections may remain. Please note that some material may have been redacted from this document if that material was received on a confidential basis. Redacted material is indicated by occasional gaps in the text or by gray boxes around non-text content. All redacted passages are exempt from disclosure under applicable provisions of the Freedom of Information Act. 1 In some cases, original copies needed to be photocopied before being scanned into electronic format. All scanned images were deskewed (to remove the effects of printer- and scanner-introduced tilting) and lightly cleaned (to remove dark spots caused by staple holes, hole punches, and other blemishes caused after initial printing). 2 A two-step process was used. An advanced optical character recognition computer program (OCR) first created electronic text from the document image. Where the OCR results were inconclusive, staff checked and corrected the text as necessary. Please note that the numbers and text in charts and tables were not reliably recognized by the OCR process and were not checked or corrected by staff. Content last modified 6/05/2009. CONFIDENTIAL (FR) SUPPLEMENT CURRENT ECONOMIC AND FINANCIAL CONDITIONS Prepared for the Federal Open Market Committee By the Staff Board of Governors of the Federal Reserve System September 5, 1969 SUPPLEMENTAL NOTES The Domestic Nonfinancial Economy Labor market. Employment rose in August, but at a sharply slower pace than in the first half of the year. After declining in July, nonfarm employment rose by only 167,000 in August. Well over half of that increase was in the auto industry and was an outgrowth of an early model changeover. Consequently, it should be matched by a comparable decline next month. Employment declines were reported in construction, several consumer-goods manufacturing industries, and Employment growth continued in the capital-goods Federal employment. industries and there was a sizable increase in the service industries, where job growth had lagged below its normal rise during the spring. NONFARM PAYROLL EMPLOYMENT (In Thousands, Seasonally Adjusted) DecemberMarch Total Government Private industry Manufacturing Nonmanufacturing * Average Monthly Change MarchJuneJune July JulyAugust 278 197 -31 167* 33 245 42 154 -10 -21 -4 171* 55 190 25 129 -12 - 9 120* 51 The August figures include an increase of 95,000 in the transportation equipment industry, which is attributable to inadequate seasonal adjustment factors for the early model changeover in the auto industry. The average workweek of factory production workers edged down one-tenth of an hour to 40.6 hours in August. Although down slightly -2- from the recent March high of 40.9 hours, the workweek was near its average level of the past two years. Total unemployment was little changed between July and August but a rounding effect did result in the rate sliding back down to 3.5 per cent. Although higher than last winter, joblessness has not shown a sustained increase, nor do the insured unemployment figures suggest rising layoffs late in August. Retail sales. Retail sales for the last week in August raised our estimate for the month as a whole. Instead of the Greenbook estimated increase of about 1 per cent, it is possible that sales could rise around 2 per cent above the July level. Part of the strength, however, seems to be attributable to the automotive products group of stores and thus may not be consistent with the slight decline indicated in unit automobile sales for the month. Our estimated August level of sales is 1-1/4 per cent above the April peak in the series, but only 3.5 per cent above a year ago. Dealer deliveries of new domestic autos for August as a whole were at a seasonally adjusted annual rate of 8.1 million units, 9 per cent below a year earlier and 1 per cent below a month ago. - 3 The Domestic Financial Situation Corporate and municipal bond markets continued to weaken this week with yields in both markets advancing to new peaks. While new issues generally met with favorable responses from investors, market participants, nonetheless, seemed to be highly concerned over the uncertain economic outlook, the supply of new corporate bond offerings, and unfolding pressures in the municipal market stemming from factors noted in the Greenbook. BOND YIELDS New Corporate Aaaj/ Bond Yields Long-term State 2 , and Local Bonds 1968 Low High 6.13 (8/30) 6.92 (12/13) 4.07 (8/9) 4.85 (12/29) 6.90 (1/10) 7.90 (9/5) 4.82 (12/24) 6.37 (9/5) 1 7.75 5.93 8 15 22 29 7.57 7.53 7.61 7.82 5.80 5.91 6.02 6.26 7.90 6.37 1969 Low High Week of: August September 5 1/ 2/ With call protection (includes some issues with 10-year call protection). Bond Buyer (mixed qualities). -4- Late this week the calendar of corporate bonds began to build up--headed by a $150 million industrial offering. Rumors of other large offerings also arose as underwriters reported some borrowers have apparently depleted alternative sources of funds and new bank commitments were not available. In light of this changed market atmosphere, the volume of corporate bonds estimated for September has been revised upward $200 million, to $1.2 billion. This estimate explicitly assumes that a large proportion of the $600 million of convertible bond offerings tentatively scheduled for September will be postponed, continuing a pattern evident since June. CORPORATE SECURITY OFFERINGS-1 Monthly or Monthly Averages (Millions of dollars) Public Bond Offerings 1968 1969 Private Bond Offerings 1968 1969 Stos Stocks 1968 Total 1969 1968 1969 Year 894 -- 554 -- 382 -- 1,830 QI 821 886 574 513 330 674 1,726 2,073 1,035 1,136 548 526 319 709 1,902 2,371 869 1,087e 454 517e 389 467e 1,711 2,071e 1,244 1,360e 528 500e 372 500e 2,144 2,360e August 637 70 0e 400 500e 396 400e 1,433 1,600e September 727 1,200e 433 550e 398 500e 1,556 2,050e Jan.-July 973 l,016e 556 517e 331 644e 1,861 2,242e Aug.-Sept. 682 950e 417 525e 397 450e 1,495 1,925e QII QIII July Memo: e/.stmaed.i e/ Estimated. D... . 1/ ,r gross prces Data are gross proceeds. -5The estimated volume of municipal bond offerings in September has been revised downward $100 million, to $750 million. Postponements and cancellations of municipal bond issues accelerated sharply this week, and it now appears they will exceed our earlier implicit allowance for this factor. STATE AND LOCAL GOVERNMENT OFFERINGS Monthly or Monthly Averages (Millions of dollars) Long-Term 1968 1969 Net Short-Term/ 1969 1968 Total 1968 1969 Year 1,381 - - 38 n.a. 1,343 n.a. QI 1,246 930 - 56 328 1,190 1,258 QII 1,285 1,208 5 394e 1,290 1,602 QIII 1,537 - 38 n.a. 1,499 n.a. 523 190e 1,992 1,253e 1,425e 888e July 1,469 August 1,699 850e 204 575e 1,963 September 1,444 750e -902 n.a. 542 e/ 1/ 2/ 3/ 1,063 n.a. Estimated. Data are for principal amounts of new issues. EXCLUDES note offerings of Housing Assistance Administration and Renewal Assistance Administration. Combines GROSS long-term and NET short-term issues. - 6KEY INTEREST RATES 1969 Lows Highs AuP 11 Spptq- 4 Short-Term Rates Federal funds (weekly averages) 5.95 (1/1) 9.57 (9/3) 9.57 (8/6) 9.57 (9/3) 3-months Treasury bills (bid) Bankers' acceptances Euro-dollars Federal agencies Finance paper CD's (prime NYC) Highest quoted new issue Secondary market 6-months Treasury bills (bid) Bankers' acceptances Commercial paper Federal agencies CD's (prime NYC) Highest quoted new issue Secondary 1-year Treasury bills (bid) Prime municipals 7.15 8.50 12.50 (1/2) 7.81 (3/28) (3/11) 8.25 5.87 (4/30) 6.38 7.14 6.03 6.13 (2/17) 7.01 8.00 (6/10) 10.26 7.58 (7/23) (7/30) 8.00 (8/27) (7/9) 7.04 8.13 11.36 7.54 7.63 6.00 6.40 (4/30) 6.00 8.70 (7/23) 6.00 8.50 6.00 8.25 (4/30) (2/17) 7.38 (7/15) 8.62 (7/9) 8.75 (7/9) 8.14 (7/30) 7.23 7.82 7.25 8.25 8.25 7.96 6.25 6.50 (1/30) 6.25 9.00 (7/23) 6.25 8.50 6.25 8.30 5.86 (1/16) 3.90 (1/2) 7.47 (7/1) 5.75 (9/3) 7.39 5.30 (8/6) 7.36 5.75 (9/3) 6.11 (1/20) 5.91 (6/5) 7.26 (9/3) 6.46 (5/28) 7.04 6.18 7.25 6.42 6.56 (1/2) 7.26 (2/3) 7.10 (7/16) 7.94 (9/3) 6.98 7.83 7.04 (9/3) 7.94 (9/3) 7.03 (1/23) 7.80 (6/18) 7.90 (9/3) 7.57 (8/6) 7.90 4.57 (1/2) 6.37 (9/4) 5.80 (9/4) 5.80 (8/6) 5.70 (8/6) 6.37 5.80 7.66 (1/6) 8.47 (7/7) 8.29 8.34 (9/2) 5.96 6.50 6.25 6.32 (1/7) (1/16) 8.12 8.38 Intermediate and Long-Term Treasury coupon issues 5-years 20-years Corporate Seasoned Aaa Baa New Issue Aaa No call protection Call protection Municipal Bond Buyer Index Moody's Aaa 6.90 (2/20) 4.82 (1/23) 7.90 (9/3) Mortgage--implicit yield in FNMA weekly auction 1/ 1/ Yield on 6-month forward commitment after allowance for commitment fee and required purchase and holding of FNMA stock. Assumes discount on 30-year loan amortized over 15 years. APPENDIX A: BANK LENDING PRACTICES SURVEY. AUGUST 1969* About one-half of the respondent banks in the August 15 Bank Lending Practices Survey indicated that the demand for business loans had remained unchanged during the preceding three months, while nearly 40 per cent of the banks thought it had strengthened. Moreover, almost 65 per cent felt that the demand for business loans would remain about the same over the next three months, but about 20 per cent anticipated further strengthening. Most banks firmed further their terms and conditions on loans to nonfinancial businesses, while no banks eased lending policies to business borrowers. Nearly 80 per cent of the respondents indicated that they had raised interest rates on loans to businesses--probably reflecting the May increase in the prime rate--and almost 70 per cent tightened policies with regard to compensating balance requirements. Moreover, two-thirds to four-fifths of the banks followed more restrictive policies when reviewing credit lines or loan applications of new or nonlocal service area customers, and scrutinized loan applications more closely with regard to such factors as the intended use of the loan or the value of the applicant as a depositor or source of collateral business. In addition, 40-50 per cent stiffened lending terms to established or local service area customers, as well as with regard to the maturity of term loans and standards of credit worthiness. Lending terms and conditions for "noncaptive finance companies" also were tightened further. Over 60 per cent of the respondents indicated a reduced willingness to establish new or larger credit lines to finance companies, and about one-half raised interest rates on finance company loans. Moreover, about 40 per cent of the banks tightened compensating balance requirements and adopted more strict enforcement of these requirements. Bank willingness to make other types of loans also was reduced As in the preceding survey, banks further in the past three months. were particularly unwilling to make term loans, as indicated by about 65 per cent of the banks. Mortgage loans, loans to brokers, and participation loans to correspondent banks also came under increasing pressure, with 40-50 per cent of the banks more reluctant to make these loans. Moreover, about 30 per cent of the banks were even somewhat less willing to make loans in the relatively profitable consumer instalment area. * - Prepared by Marilyn Connors, Research Assistant, Banking Section, Division of Research and Statistics. A- 2 There was little size of bank variation in the responses, with respect to either current or anticipated loan demand or to most lending terms and conditions (Table 2). However, a higher percentage of larger banks (deposits of $1 billion or more) did firm policies regarding compensating balances than was the case with smaller banks (deposits of less than $1 billion). But smaller banks showed a greater trend toward restraint of consumer loans than larger banks. No other responses differed significantly with respect to size of banks. The reasons given by banks for firmer lending policies changed somewhat from those given in the last survey. Most banks that tightened lending policies continued to cite deposit outflows and the high cost of borrowing funds as major reasons for firming. However, nearly every one of these banks also indicated that their liquidity positions were extremely thin, in contrast to only a few banks that gave this as an explanation in the previous survey. Moreover, fewer banks mentioned strong loan demands than was the case in the previous survey. NOT FOR QUOTATION OR PUBLICATION TABLE 1 PAGE 01 QUARTERLY SURVEY OF CHANGES IN BANK LENDING PRACTICES AT SELECTED LARGE BANKS IN THE U.S. 1/ (STATUS OF POLICY ON AUGUST 15, 1969 COMPARED TO THREE MONTHS EARLIER) (NUMBER OF BANKS & PERCENT OF TOTAL BANKS REPORTING) MUCH STRONGER TOTAL BANKS PCT BANKS PCT MODERATELY STRONGER ESSENTIALLY UNCHANGED MODERATELY WEAKER BANKS BANKS BANKS PCT PCT PCT MUCH WEAKER BANKS PCT STRENGTH OF DEMAND FOR COMMERCIAL AND INDUSTRIAL LOANS (AFTER ALLOWANCE FOR BANK'S USUAL SEASONAL VARIATION) COMPARED TO THREE MONTHS AGO ANTICIPATED DEMAND IN NFXT 3 MONTHS 124 100.0 42 33.9 64 51.6 11 8.9 0 0.0 124 100.0 24 19.4 79 63.7 19 15.3 0 0.0 ANSWERING QUFSTION BANKS LENDING TO NONFINANCIAL PCT MUCH FIRMER POLICY BANKS PCT MODERATELY FIRMER POLICY ESSENTIALLY UNCHANGED POLICY MODERATELY EASIER POLICY BANKS BANKS BANKS PCT PCT PCT BUSINFSSES TERMS ANO CONDITIONS: INTEREST RATES CHARGED 100.0 32.3 46.0 21.7 COMPENSATING OR SUPPORTING BALANCES 100.0 29.3 39.0 31.7 STANDARDS OF CREDIT WORTHINESS 100.0 15.4 25.2 59.4 100.0 21.1 21.1 57.8 MATURITY OF TERM LOANS REVIEWING CREDIT LINES OR LOAN APPLICATIONS ESTABLISHED CUSTOMERS 100.0 19 15.3 36.3 48.4 NEW CUSTOMERS 100.0 69 55.6 25.8 18.6 100.0 16 13.0 35.8 51.2 100.0 53 43.4 25.4 31.2 LOCAL SERVICE AREA CUSTOMERS NONLOCAL SERVICE AREA CUSTOMERS 1/ SURVEY OF LENDING PRACTICES AUGUST 15, 1969. AS OF AT 125 LARGE BANKS REPORTING IN THE FEDERAL RESERVE QUARTERLY INTEREST RATE SURVEY MUCH EASIER POLICY BANKS PCT NOT FOR QUOTATION OR PUBLICATION TABLE 1 ANSWERING QUESTION BANKS PCT (CONTINUED) MUCH FIRMER POLICY BANKS PAGE 02 MODERATELY FIRMER POLICY ESSENTIALLY UNCHANGED POLICY MODERATELY EASIER POLICY PCT BANKS BANKS BANKS PCT PCT PCT MUCH EASIER POLICY BANKS PCT FACTORS RELATING TO APPLICANT 2/ VALUP AS DEPOSITOR OR SOURCE OF COLLATERAL BUSINESS 123 100.0 39 31.7 41 33.3 43 35.0 0 0.0 0 0.0 INTENDED USE OF 124 100.0 48 38.7 37 29.8 39 31.5 0 0.0 0 0.0 INTEREST RATES CHARGED 123 100.0 30 24.4 29 23.6 64 52.0 0 0.0 0 0.0 COMPENSATING OR SUPPORTING BALANCES 123 100.0 16 13.0 27 22.0 80 65.0 0 0.0 0 0.0 ENFORCEMENT OF BALANCE REQUIREMENTS 123 100.0 24 19.5 28 22.8 71 57.7 0 0.0 0 0.0 ESTABLISHING 121 100.0 55 45.5 20 16.5 46 38.0 0 0.0 0 0.0 THE LOAN LENDING TO "NONCAPTIVE" FINANCE COMPANIES TERMS AND CONDITIONS: NEW OR LARGER CREOIT LINES ANSWERING QUESTION BANKS WILLINGNESS PCT CONSIDERABLY LESS WILLING BANKS PCT MODERATELY LESS WILLING ESSENTIALLY UNCHANGED MODERATELY MORE WILLING BANKS BANKS BANKS PCT PCT PCT CONSIDERABLY MORE WILLING BANKS PCT TO MAKE OTHER TYPES OF LOANS TERM LOANS TO BUSINESSES 123 100.0 35 28.5 46 37.4 42 34.1 0 0.0 0 0.0 123 100.0 4 3.3 31 25.2 86 69.9 2 1.6 0 0.0 SINGLE FAMILY MORTGAGE LOANS 121 100.0 25 20.7 36 29.8 59 48.7 1 0.8 0 0.0 MULTI-FAMILY MORTGAGE LOANS 120 100.0 40 33.3 30 ?5.0 50 41.7 0 0.0 0 0.0 ALL OTHER MORTGAGE LOANS 120 100.0 37 30.8 38 31.7 45 37.5 0 0.0 0 0.0 PARTICIPATION LOANS WITH CORRESPONDENT BANKS 124 100.0 17 13.7 44 35.5 62 50.0 1 0.8 0 0.0 LOANS TO BROKERS 123 100.0 33 26.8 40 32.5 50 40.7 0 0.0 0 0.0 CONSUMER INSTALMENT LOANS 2/ FOR THESE FACTORS, FIRMER MEANS THE FACTORS WERF CONSIDERED MORF CREDIT REQUFSTS, AND FASIER MEANS THFY WERE LESS IMPORTANT. IMPORTANT IN MAKING DECISIONS FOR APPROVING NOT FOR QUOTATION OR COMPARISON PUBLICATION TABLE 2 PAGE 03 OF QUARTERLY CHANGES IN BANK LENDING PRACTICES AT BANKS GROUPED BY SIZE OF TOTAL DEPOSITS (STATUS OF POLICY ON AUGUST 15, 1969, COMPARED TO THREE MONTHS EARLIER) (NUMBER OF BANKS IN EACH COLUMN AS PER CENT OF TOTAL BANKS ANSWERING QUESTION) SIZE TOTAL UNDER $1 $1 & OVER OF BANK MUCH STRONGER $1 6 OVER UNDER $1 -- TOTAL DEPOSITS I IN BILLIONS MODERATELY STRONGER ESSENTIALLY UNCHANGED MODERATELY WEAKER $1 & OVER $1 & OVER St & OVER UNDER $1 UNDER $1 UNDER $1 MUCH WEAKER $1 & OVER UNDER $1 STRENGTH OF DEMAND FOR COMMERCIAL AND INDUSTRIAL LOANS (AFTFR ALLOWANCE FOR BANK'S USUAL SEASONAL VARIATION) COMPARED TO THREE MONTHS AGO 100 100 ANTICIPATED DEMAND IN NEXT 100 100 3 MONTHS TOTAL MUCH FIRMER $1 C OVER MODERATELY FIRMER ESSENTIALLY UNCHANGED MODERATELY WEAKER $1 & OVER $1 & OVER $1 & OVER $1 & OVER UNDER $1 100 100 100 100 STANDARDS OF CREDIT WORTHINFSS 100 100 MATURITY OF TERM LOANS 100 100 ESTABLISHED CUSTOMERS 100 100 0 0 NEW CUSTOMERS 100 100 0 0 100 100 0 0 100 100 0 0 UNDER $1 UNDER $1 UNDER $1 UNDER $1 MUCH WEAKER $1 & OVER LENDING TO NONFINANCIAL BUSINESSES TERMS AND CONDITIONS: INTEREST RATES CHARGED COMPENSATING OR REVIEWING CREDIT LOCAL SERVICE NONLOCAL SUOPORTING BALANCES LINFS OR LOAN APPLICATIONS AREA CUSTOMFRS SERVICE AREA CUSTOMERS 47 LARGE BANKS (DEPOSITS OF $1 BILLION OR MORE) AND 1/ SURVEY OF LENDING PRACTICES AT $1 BILLION) REPORTING IN THE FEDERAL RESERVE QUARTERLY INTEREST RATE SURVEY AS OF 78 SMALL BANKS (DEPOSITS OF LESS AUGUST 15, 1969. THAN UNDER $1 Ln NOT FOR QUOTATION OR PUBLICATION TABLE 2 (CONTINUED) SIZE NUMBER ANSWERING QUESTION $1 & OVER UNDER $1 OF BANK MUCH FIRMER POLICY $1 E OVER UNDER $1 PAGE 04 -TOTAL DEPOSITS IN BILLION!S MODERATELY ESSENTIALLY MODERATELY FIRMER UNCHANGED EASTER POLICY POLICY POLICY $1 & OVFR UNDER $1 t$1 OVER UNDER $1 $1 & OVER UNDER $1 MUCH EASIER POLICY $1 & OVER UNDER $1 FACTORS RELATING TO APPLICANT 2/ VALUE AS DEPOSITOR OR SOURCE OF COLLATERAL BUSINFSS LOO 100 O 0 O 0 INTENDED USE OF THE LOAN 100 100 0 0 0 0 INTEREST RATES CHARGED 0 0 0 0 COMPENSATING OR SUPPORTING BALANCES 0 0 0 0 ENFORCEMENT OF BALANCE REQUIRFMENTS 0 0 0 0 ESTABLISHING NEW OR LARGER CREDIT LINES 0 0 0 0 LENDING TO "NONCAPTIVE" FINANCE COMPANIES TERMS AND CONDITIONS: NUMBER ANSWERING QUESTION $1 & OVER WILLINGNESS TERM TO MAKE UNDER $1 CONSIDERABLY LESS WILLING l$ E OVER UNDER $1 MODERATELY LESS WILLING $1 E OVER UNDER $S ESSENTIALLY UNCHANGED $1 t OVER UNDER $1 MODERATELY MORE WILLING $1 E OVER UNDER $1 OTHER TYPES OF LOANS LOANS TO BUSINESSFS CONSUMER INSTALMENT LOANS SINGLE FAMILY MORTGAGE LOANS MULTI-FAMILY MORTGAGE LOANS ALL OTHER MORTGAGE LOANS PARTICIPATION LOANS WITH CORRFSPONDENT BANKS LOANS TO BROKERS 2/ FOR THESE FACTORS, FIRMER MEANS THE FACTORS WERE CONSIDERED MORE IMPORTANT IN MAKING DECISIONS FOR APPROVING CREDIT REQUESTS, AND EASIFR MEANS THEY WERE LESS IMPORTANT. CONSIDERABLY MORE WILLING $1 & OVER UNDER $1 A-7 TABLE 2-A NET RESPONSES OF BANKS IN LENDING PRACTICES SURVEYS (In per cent) Strength of loan demand(compared to 3 months ago) Anticipated demand in next 3 months LENDING TO NONFINANCIAL BUSINESSES Aug. 1967 Nov. 1967 Feb. 1968 May 1968 Aug. 1968 Nov. 1968 Feb. May 1969 1969 Aug. 1969 20.2 63.2 18.8 71.2 -8.0 50.0 64.8 66.4 -2.4 -- 25.6 20.8 54.4 49.2 60.0 41.8 30.6 5.7 21.6 20.8 12.0 5.6 30.4 25.0 8.9 12.1 34.4 16.1 7.3 1.6 93.6 56.8 32.8 32.8 0.8 4.8 4.8 1.6 -27.2 10.4 4.8 1.6 86.2 64.3 32.8 30.3 91.0 75.6 41.4 42.3 78.3 68.3 40.6 42.2 1.6 16.8 0.8 16.1 6.4 21.6 6.5 18.9 -0.8 10.5 2.5 11.6 28.0 64.8 30.0 56.9 -5.6 -5.6 -5.6 10.6 -1.6 6.4 -4.1 15.4 32.5 61.7 30.9 49.5 47.2 80,2 46.7 71.3 51.6 81.4 48.8 68.8 25.6 10.4 20.0 14.4 19.2 12.0 54.4 44.4 12.8 8.1 16.0 6.4 58.6 54.5 67.2 71.6 65.0 68.5 6.4 9.6 14.4 13.7 10.4 11.2 17.6 14.4 22.4 5.6 12.8 7.2 60.5 25.0 32.3 53.2 2.4 2.4 8.1 15.3 -26.4 2.4 3.2 4.8 53.3 22.9 29.5 54.9 50.8 27.9 42.6 62.4 48.0 35.0 42.3 62.0 6.4 -16.1 - 4.0 49.6 -22.6 -0.8 - 4.9 32.0 9.0 9.8 11.2 -16.1 4.1 14.0 14.0 7.4 36.4 -- 43.4 4.8 - 0.8 -11.3 -15.3 -14.1 - 3.3 8.2 4.1 3.4 1.7 48.8 4.2 30.8 40.1 42.5 64.3 17.2 45.5 57.5 62.0 65.9 26.9 49.7 58.3 62.5 - 6.4 - 4.8 8.8 1.6 16.0 23.4 -- 18.7 1.6 34.2 38.4 40.0 48.4 59.3 2/ Terms and Conditions Interest rates charged Compensating or supporting balances Standards of credit worthiness Maturity of term loans Reviewing Credit Lines Established customers New customers Local service area customers Non-local service area customers Factors Relating to Applicant (Net percentage indicating more important) Value of depositor as source of business Intended use of loan LENDING TO NONCAPTIVE FINANCE COMPANIES2/ Terms and Conditions Interest rates charged Compensating or supporting balances Enforcement of balance requirements Establishing new or larger credit lines WILLINGNESS TO MAKE OTHER LOANS- / Term loans to businesses Consumer instalment loans Single-family mortgage loans Multi-family mortgage loans All other mortgage loans Participation loans with correspondent banks Loans to brokers - 8.2 1.6 3.2 1.6 6.5 1/ Per cent of banks reporting stronger loan demand minus per cent of banks reporting weaker loan demand. Positive number indicates net stronger loan demand, negative number indicates net weaker loan demand. 2/ Per cent of banks reporting firmer lending policies minus per cent of banks reporting weaker lending policies. Positive number indicates net firmer lending policies, negative number indicates net easier lending policies. 3/ Per cent of banks reporting less willingness to make loans minus per cent of banks more willing to make loans. Positive number indicates less willingness, negative number indicates more willingness. NOTE: 133 banks participated in the February 1967 Survey; 125 banks have participated in the surveys since that time. 

Federal Reserve (1969, September 8). Greenbook/Tealbook. Greenbooks, Federal Reserve. https://whenthefedspeaks.com/doc/greenbook_19690909_part3

@misc{wtfs_greenbook_19690909_part3,
  author = {Federal Reserve},
  title = {Greenbook/Tealbook},
  year = {1969},
  month = {Sep},
  howpublished = {Greenbooks, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/greenbook_19690909_part3},
  note = {Retrieved via When the Fed Speaks corpus}
}