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 June 15, 1973 By the Staff Board of Governors of the Federal Reserve System SUPPLEMENTAL NOTES The Domestic Economy Autos. Seasonally adjusted sales of new domestic-type autos in the first 10 days of June were at an 8.6 million unit annual rate, a little below the same period last year, and appreciably below the 10.1 million average of the first five months of this year. New homes sold by merchant builders dropped further in April to a seasonally adjusted annual rate of 667,000, the lowest in more than a year. While homes available for sale edged down from their recent peak, they equaled a record 7.6 months' supply at the reduced April rate of sales. Partly reflecting upgrading in the mix of demands, however, the median price of homes sold in April advanced further--to $32,800, up more than $6,000 from a year earlier and well above the median price of homes still for sale. The median price of existing homes sold in April was $28,670, little changed from March and about 8 percent higher than in April of last year. Unlike merchant-builder sales of new homes, unit sales of existing homes were quite strong, at a level 13 percent above a year earlier. NEW SINGLE FAMILY HOMES SOLD AND FOR SALE Homes Homes for sale 2/ Sold 1/ (Thousands of units) Median price of homes For sale Sold (Thousands of dollars) 1972 QI 688 318 26.2 26.1 QIII QIV (r) 733 761 386 402 27.9 29.0 27.1 28.3 QI (p) 725 426 30.5 29.4 February (r) March (r) April (p) 728 717 667 426 426 424 29.8 31.4 32.8 29.1 29.4 30.1 1973 1/ SAAR. SA, end of period. 2/ p - Preliminary r - Revised. -2 - The Domestic Financial Situation Nonbank thrift institutions. Estimates of deposits flows into mutual savings banks have been revised upward for the month of May. It now appears that the 5 percent annual growth rate recorded in April was maintained during May. Moreover, data from the New York State mutual savings banks indicate that net deposit flows during the first 5 business days of June were $34 million, about equal to the $37 million inflow in the comparable period in May, although below the $52 million received in early June a year ago. Mortgage rates. Average rates on home mortgages increased slightly further during May. According to the HUD(FHA) field office opinion survey which reflects market conditions toward the end of the month, the average contract interest rate on conventional first newhome mortgages in the primary market rose 5 basis points to 7.95 percent, the highest level since January 1971 and 40 basis points above the recent low in March 1972. The corresponding rate for conventional existing-home mortgages increased by 10 basis points to 8.00 percent. The average yield on FHA/VA mortgages in the private secondary market (including loans eligible for GNMA discount subsidy but excluding loans in the FNMA auction) increased 6 basis points to 7.79 percent--34 basis points above the low in March 1972. Based on data for early May, the average effective interest rate on the limited volume of new commitments being made to prospective homebuyers for FHA/VA home mortgages was up by 7 basis points, according to the HUD series initiated last year. Rates on new-home loan commit- ments increased by more (14 basis points) than rates on existing-home loan commitments (5 basis points). HUD. DATA CONFIDENTIAL UNTIL RELEASED BY -3AVERAGE RATES AND YIELDS ON NEW-HOME MORTGAGES Primary market: Conventional loans Spread Level (basis (percent) points) Secondary market: FHA-insured loans Spread Level (basis Discounts (percent) points) (points) 1971 - Low High 7.55 7.95 -36 52 7.32 7.97 1972 - Low -27 31 2.5e 7.8 7.55 15 7.45 5 High 7.70 61 7.57 48 4.7 Nov. Dec. 7.70 7.70 61 55 7.57 7.56 48 41 4.7 4.6 1973 - Jan. 7.70 32 7.55 17 4.5 Feb. Mar. Apr. May 7.75 7.80 7.90 7.95 35 31 44 44 7.56 7.63 7.73 7.79 16 14 27 28 4.6 5.2 5.9 6.4 3.7 NOTE: FHA series: interest rates on conventional first mortgages (excluding additional initial fees and charges) are rounded by FHA to the nearest 5 basis points. On FHA loans carrying the 7 percent ceiling rate in effect since mid-February 1971, a change of 1.0 points in discount is associated with a change of 12 to 14 basis points in yield. Gross yield spread is average mortgage return, before deducting servicing costs, minus average yield on new Aaa utility bonds. e/ Estimated. CONFIDENTIAL UNTIL RELEASED BY HUD CORRECTION: The May 11, 1973 Supplement had an error in Appendix B, "The Treasury's Proposals for Tax Change". The revenue effect noted on page B-3 that would result from simplification of tax forms should have read "$0.4 billion", instead of "$4 billion". -4Consumer instalment credit delinquencies. The delinquency rate on consumer instalment loans at commercial banks has increased further, according to the ABA series to be released later this month. For loans delinquent 30 to 89 days, the seasonally adjusted delinquency rate was 1.81 percent at the end of April, up from 1.72 percent in February and 1.55 percent a year earlier. Within categories, the rate rose on personal, home appliance, and indirect auto loans, and declined somewhat on direct auto loans. At major finance companies the delinquency rate on auto contracts declined in April for the third consecutive month after seasonal adjustment. Contracts delinquent over 30 days averaged 2.19 percent of the total, approaching the more moderate levels of mid-1972. Other measures of collection experience, such as contracts refinanced, units repossessed, and losses on repossessions sold, were virtually unchanged from a year ago. -5- INTEREST RATES 1973 Highs Lows May 14 June 14 Federal funds (wkly. avg.) 8.17 (6/13) 5.61 (1/3) 7.60 (5/9) 8.17 (6/13) 3-month Treasury bills (bid) Comm. paper (90-119 day) Bankers' acceptances Euro-dollars CD's (prime NYC) 60-89 day Most often quoted new 7.17 (6/14) 7,88 (6/14) 8.13 (6/14) 9.25 (3/2) 5.12 (1/4) 5.63 (1/12) 5.75 (1/11) 5.81 (1/5) 6.17 7.13 7.38 8.44 7.17 7.88 8.13 8.69 7.88 (6/13) 5.38 (1/3) 7.25 (5/9) 7.88 (6/13) 6-month Treasury bills (bid) Comm. paper (4-6 mo.) Federal agencies CD's (prime NYC) 180-269 day Most often quoted new 7.17 (6/14) 7.88 (6/14) 7.47 (6/14) 5.38 (1/4) 5.63 (1/12) 5.64(1/3) 6.40 7.17 7.88 7.63 (6/13) 5.63 (1/3) 7.00 (5/9) 7.63 (6/13) 7.04 (6/4) 7.53 (6/14) 5.40 (1/4) 5.86 (1/2) 6.46 7.08 6.94 7.53 7.25 (6/13) 4.25 (6/6) 5.75 (1/3) 3.20 (1/3) 7.00,(5/9) 4.00 (5/9) 7.25 (6/13) 4.00 (6113) Treasury coupon issues 5-years 20-years 6.92 (3/16) 7.02 (6114) 6.23 (1/4) 6.80 6.04 (1/3) 6.98 6.63 7.02 Corporate Seasoned Aaa Baa 7.37 (6/14) 8.15 (6/14) 7.27 7.10 (1/2) 7.88 (1/12) 8.03 7.37 8.15 7.58 (6/13) 7.29 (1/10) 7.40 (5/2) 7.58 (6/13) Municipal Bond Buyer Index 5.35 (3/21) 5.00 (1/17) 5.10 (5/9) 5.13 (6/13) Mortgage--implicit yield in FNMA auction 1/ 8.04 (6/L1) 7.69 (1/8) 7.92 (4/30) 8.04 (6/11) Short-Term Rates 1-year Treasury bills (bid) Federal agencies CD's (prime NYC) Most often quoted new Prime municipals 7.13 6.89 7.47 Intermediate and Long-term New Issue Aaa Utility 1/ Yield on short-term forward commitment after allowance for commitment fee and required purchase and holding of FNNA stock. Assumes discount on 30year loan amortized over 15 years. SUPPLEMENTAL APPENDIX A: BANK CREDIT REVISION * Reflecting data now available from the December 31, 1972, Call Report, seasonally adjusted bank credit data (last-Wednesday of month series) have been revised for the period July 1972 through April 1973. These revised data have been used in the current Greenbook tables. December Call Report data indicate that growth in commercial bank credit was at a somewhat faster pace in the second hald of 1972 than had been estimated previously on the basis of incomplete information. The additional credit expansion was reflected in all three credit areas--loans, U.S. Treasury securities, and other securities (Table I). A substantial part of the upward revision was associated with a too low estimate of credit growth between the last-Wednesday of December (December 27) and December 31. In addition to the usual "window dressing" during this period, a Treasury note financing occurred and net bank acquisitions of these securities were apparently underestimated. But holdings of other securities and loans also increased more rapidly in the last few days of December than had been indicated previously. Over the second half of 1972, (Table II) total bank credit increased at an annual rate of 15.5 per cent, compared with an estimated 14.2 per cent. Corresponding figures for the fourth quarter were 16.4 per cent and 14.4 per cent, with the month of December showing the most substantial differences. Again, reflecting in part the "window dressing" error, credit growth in the first quarter of 1973 was lower than estimated--18.4 per cent versus 20.3 per cent. Business, real estate, agricultural, security, and nonbank financial loans were all higher on the December call date than had been previously estimated. However, business loans were only nominally higher with practically no change in annual rates. Real estate loans were considerably higher increasing at an annual rate of 19.7 per cent over the second half of 1972 compared with an estimated 17.9 per cent. Consumer loans--which are taken from Consumer Credit statistics--were not affected by the benchmark revision. Differences between total loans on the old and revised series also reflect the incorporation of revised data for commercial interbank loans which are deducted from total loans. The method of estimating these interbank loans was changed somewhat recently and the use of the new series contributed to differences in levels and * month-to-month changes in total loans. Prepared by Mary Jane Harrington, Economist, Banking Section, Division of Research and Statistics. Table I Seasonally Adjusted Bank Credit 1/ Comparison of Old and Revised Series (In billions of dollars) Total loans and investments Old Revised Period U.S. Treasury Other securities Old Revised securities Old Revised Business., Total loans -Old Revised Real loans Old Revised estate loans Old Revised 1972--July 26 524.2 523.7 62.3 62.3 111.2 111.3 350.7 350.1 122.9 122.9 90.6 90.7 Aug. 30 532.2 531.5 61.4 61.4 112.3 112.5 358.6 357.7 125.4 125.4 92.1 92.3 Sept. 27 537.5 537.9 62.0 62.0 113.3 113.5 362.3 362.4 126.0 126.1 93.2 93.6 Oct. 25 542.6 542.7 59.9 59.9 113.3 113.6 369.4 369.2 128.2 128.1 94.5 95.0 Nov. 29 551.9 552.3 60.6 60.6 115.1 115.6 376.1 376.1 129.9 129.8 96.1 96.7 Dec. 31 556.8 560.0 62.0 62.4 115.6 116.9 379.2 380.8 130.8 131.0 97.3 98.1 1973--Jan. 31 565.4 567.2 62.0 61.9 116.5 117.1 386.9 388.2 134.7 134.9 98.6 99.4 Feb. 28 575.7 576.8 60.2 60.2 116.6 117.2 398.8 399.3 140.0 140.2 99.9 100.7 Mar. 28 585.0 585.8 60.6 60.6 116.6 117.2 407.8 408.1 143.6 143.8 101.2 102.0 Apr. 25 588.1 588.9 60.6 60.6 116.0 116.6 411.5 411.6 146.2 146.4 102.3 103.1 1/ 2/ Last Wednesday of month series. Includes outstanding amounts of loans reported as sold outright by banks to their own holding companies, affiliates, subsidiaries, and foreign branches. NOTE: Data revised to reflect adjustments to December 31, 1972 Call Report benchmarks. Table II Seasonally Adjusted Bank Credit 1/ Comparison of Old and Revised Series (Seasonally adjusted changes at annual percentage rates) Total loans and Period 1972--Year U.S. Treasury securities Old Revised Other 2/ securities Old Revised Total loans Revised Old Business loans Old Revised Real estate loans Old Revised 14.0 14.6 2.1 2.8 10,6 11.9 17.3 17.7 12.1 12.3 19.5 20.5 2nd Half 14.2 15.5 -3.8 -2.5 9.0 11.4 19.2 20.1 14.1 14.4 17.9 19.7 3rd Qtr. 13.6 13.9 -7.6 -7.6 9.8 10.5 18.8 19.0 12.4 12.8 17.5 19.3 4th Otr. 14.4 16.4 -- 2.6 8.1 12.0 18.7 20.3 15.2 15.5 17.6 19.2 Oct. 11.4 10.7 -40.6 -40.6 1.1 23.5 22.5 21.0 19.0 16.7 17.9 Nov. 20.6 21.2 14.0 14.0 19.1 21.1 21.8 22.4 15.9 15.9 20.3 21.5 Dec. 10.7 16.7 27.7 35.6 5.2 13.5 9.9 15.0 8.3 10.9 15.0 17.4 20.3 18.4 -9.0 3.5 1.0 30.2 28.6 39.1 39.1 16.0 15.9 Jan. 18.6 15.4 -- 9.3 2.1 24.4 23.3 35.8 35.7 16.0 15.9 Feb. 21.9 20.3 -34.8 1.0 1.0 36.9 34.3 47.2 47.1 15.8 15.7 Mar. 19.4 18.7 8.0 8.0 -- -- 27.1 26.1 30.9 30.8 15.6 15.5 Apr. 6.4 6.4 -- -- -6.2 -6.1 10.9 10.6 21.7 21.7 13.0 12.9 1973--Ist Qtr. 1/ 2/ investments Old Revised Last Wednesday of -11.5 -9.6 -33.0 -- month series. Includes outstanding amount of loans.reported as sold outright by banks to their own holding companies, affiliates, subsidiaries, and foreign branches. NOTE: Data revised to reflect adjustments to December 31, 1972, Call Report benchmarks. ' B1 SUPPLEMENTAL APPENDIX B QUARTERLY SURVEY OF CHANGES IN BANK LENDING PRACTICES May 15, 1973 Approximately three-fourths of the respondents in the Bank Lending Practices Survey as of May 15 reported stronger C&I loan demands, while approximately two-thirds anticipated further strengthening of C&I demands over the next three months. (Table 1) Terms and conditions surrounding C&I lending virtually without exception were more restrictive, yielding the classic picture of tightening in a period of monetary restraint. In addition, banks were notably less willing to make nonresidential mortgage loans, participation loans, loans to brokers and dealers, and term loans to business, though there was no evidence of less willingness to lend to consumers. Significant tightening occurred in all terms and conditions surrounding C&I lending, with the greatest move toward restriction in interest rates. The prime rate rose one percentage point over the interval covered by the survey, and 80 per cent of the respondents indicated more restrictive interest rate policies. The next greatest swing was in tighter policies regarding compensating balances, where over half of the banks reported greater firmness. Appreciably more stringent standards of credit worthiness and lessened willingness to make term loans to nonfinancial business were reported as well. In reviewing credit lines and loan applications bankers also adopted firmer attitudes. Over half focused restraint on new or nonlocal service area customers. Comments made on the Survey indicated that with pressure to keep loan commitments under control there was a closer evaluation of the long-term benefits of new relationships and greater selectivity in the establishment of new or increased credit lines. Terms and conditions associated with lending to finance companies, as might be expected, were also more restrictive--particularly regarding interest rates and lines of credit. Bankers, moreover, indicated less willingness to make term loans to business--with comments suggesting that uncertainty over the future course of interest rates may be a factor. Broker-dealer loans and mortgages--especially mortgages for nonresidential construction--also have fallen from favor. In fact, with only one exception, consumer instalment loans, bankers, on balance, were less willing to make loans of all types. The relative attractiveness of consumer instalment loans may be attributable to the current rate structure where there are pressures to hold down the prime rate and only sluggish upward movements in mortgage rates. * Prepared by Richard H. Puckett, Senior Economist, Banking Section, Division of Research and Statistics. B-2 In examining differences in responses by bank size in Table 2, it appears that a somewhat greater proportion of larger banks ($1 billion and above in total deposits) expected stronger C&I loan demands in the future. Perhaps because they service a greater number of large national customers, a smaller per cent of the bigger banks reported more restrictive policies regarding credit worthiness and nonlocal service area customers. There were relatively few other substantial differences by bank size. But the larger banks were more restrictive towards term loan maturity, and placed less emphasis on the value of loan applicants as depositors. Although by District, there were differences in responses on specific questions, these seemed to be largely random and not systematically associated with one area or the other. (Table 3) NOT FOR QUOTATION OR PUBLICATION TABLE 1 QUARTERLY SURVEY OF CHANGES IN BANK LENDING PRACTICES AT SELECTED LARGE BANKS IN THE U.S. 1/ (STATUS OF POLICY ON MAY 15, 1973 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 STRENGTH OF DEMAND FOR COMMERCIAL AND INDUSTRIAL LOANS (AFTER ALLOWANCE FOR BANK'S USUAL SEASONAL VARIATION) COMPARED TO THREE MONTHS AGO 125 100.0 18.4 69 55.2 24.0 IN NEXT 125 100,0 10.4 69 55.2 32.8 ANTICIPATED DEMAND 3 MONTHS ANSWERING QUESTION BANKS PCT MUCH FIRMER POLICY BANKS PCT PCT MODERATELY FIRMER POLICY ESSENTIALLY UNCHANGED POLICY MODERATELY EASIER POLICY BANKS BANKS BANKS PCT PCT PCT LENDING TO NONFINANCIAL BUSINESSES TERMS AND CONDITIONS: INTEREST RATES CHARGED 100.0 19.2 COMPENSATING OR SUPPORTING BALANCES 100.0 13.6 STANDARDS OF CREDIT WORTHINESS 100.0 10.4 MATURITY OF TERM LOANS 100,0 60.8 20.0 45.6 5.6 33,6 55.2 31.2 62.4 REVIEWING CREDIT LINES OR LOAN APPLICATIONS ESTABLISHED CUSTOMERS 125 100.0 NEW CUSTOMERS 125 LOCAL SERVICE AREA CUSTOMERS NONLOCAL SERVICE AREA CUSTOMERS 4 3.2 37 29.6 66,4 100.0 28 22.4 48 38*4 38.4 125 100.0 4 3,2 3e 25.6 71.2 125 100.0 25 20.0 42 33.6 45.6 1/ SURVEY OF LENDING PRACTICES AT 125 LARGE BANKS REPORTING IN THE FEDERAL RESERVE QUARTERLY INTEREST RATE SURVEY AS OF MAY 15, 19T3. MUCH WEAKER BANKS PCT MUCH EASIER POLICY BANKS PCT TABLE 1 (CONTINUED) NOT FOR QUOTATION OR PUBLICATION ANSWERING QUESTION BANKS PCT MUCH FIRMER POLICY BANKS PCT MODERATELY FIRMER POLICY ESSENTIALLY UNCHANGED POLICY MODERATELY EASIER POLICY BANKS BANKS BANKS PCT PCT PCT MUCH EASIER POLICY BANKS PCT FACTORS RELATING TO APPLICANT 2/ VALUE AS DEPOSITOR OR SOURCE OF COLLATERAL BUSINESS 125 100.0 14.4 46,4 49 39,2 0.0 INTENDED USE OF THE LOAN 125 100.0 10.4 28.8 76 60.8 0.0 INTEREST RATES CHARGED 100.0 12.0 40.8 59 47,2 0.0 COMPENSATING OR SUPPORTING BALANCES 100.0 6.4 16.8 95 76.0 ENFORCEMENT OF BALANCE REQUIREMENTS 100,0 7.2 24.0 86 68.9 0.0 .op 0.0 ESTABLISHING NEW OR LARGER CREDIT LINES 100.0 16.8 39.2 55 44.0 0.0 LENDING TO "NONCAPTIVE" FINANCE COMPANIES TERMS AND CONDITIONS: ANSWERING QUESTION BANKS PCT CONSIDERABLY LESS WILLING BANKS PCT MODERATELY LESS WILLING BANKS PCT ESSENTIALLY UNCHANGED MODERATELY MORE WILLING BANKS WANKS PCT WILLINGNESS TO MAKE OTHER TYPES OF LOANS t/ TERN LOANS TO BUSINESSES 100.0 CONSUMER INSTALMENT LOANS 100,0 SINGLE FAMILY MORTGAGE LOANS 10.4 32.8 68 54.4 0.8 0.0 111 89.5 100,0 2.4 13.0 100 81,3 MULTI-FAMILY MORTGAGE LOANS 100#0 4.9 19,7 92 75.4 ALL OTHER MORTGAGE LOANS 100.0 5.6 21.0 88 71.0 5 4.1 13.8 100 81.3 11 8.9 27.4 77 62.1 PARTICIPATION LOANS WITH CORRESPONDENT BANKS 123 100.0 LOANS To BROKERS 124 100.0 FOR THESE FACTORS, FIRMER MEANS THE FACTORS WERE CONSIDERED MORE IMPORTANT IN MAKING DECISIONS FOR APPROVING CREDIT REQUESTS* AND EASIER MEANS THEY MERE LESS IMPORTANT, PCI CONSIDERABLY MORE WILLING BANKS PCT NOT FOR QUOTATION OR PUBLICATION TABLE 2 COMPARISON OF QUARTERLY CHANGES IN BANK LENDING PRACTICES AT BANKS GROUPED BY SIZE OF TOTAL DEPOSITS I/ (STATUS OF POLICY ON MAY 15 1973, COMPARED TO THREE MONTHS EARLIER) (NUMBER OF BANKS IN EACH COLUMN AS PER CENT OF TOTAL BANKS ANSWERING QUESTION) SIZE TOTAL $1 & OVER UNDER $1 OF BANK MUCH STRONGER Sl & OVER UNDER S1 -- TOTAL DEPOSITS IN BILLIONS MODERATELY STRONGER ESSENTIALLY UNCHANGED S1 L OVER Sl & OVER UNDER $1 UNDER 51 MODERATELY WEAKER $1 & OVER UNDEM SL MUCH WEAKER $1 L OVER UNDER 51 STRENGTH OF DEMAND FOR COMMERCIAL AND INDUSTRIAL LOANS (AFTER ALLOWANCE FOR BANK'S USUAL SEASONAL VARIATION) COMPARED TO THREE MONTHS AGO 100 100 100 100 ANTICIPATED DEMAND IN NEXT 3 MONTHS TOTAL 51 L OVER UNDER $1 MUCH FIRMER 51 & OVER UNDER S1 MODERATELY FIRMER ESSENTIALLY UNCHANGED MODERATELY EASIER s1 & OVER $1 L OVER $1 & OVER UNDER $1 UNDER $1 UNDER 5l MUCH EASIER 51 & OVER LENDING TO NONFINANCIAL BUSINESSES TERMS AND CONOITIONSt INTEREST RATES CHARGED 100 100 COMPENSATING OR SUPPORTING BALANCES 100 100 STANDARDS OF CREDIT WORTHINESS 100 100 MATURITY OF TERM LOANS 100 100 ESTABLISHED CUSTOMERS 100 100 NEW CUSTOMERS 100 100 LOCAL SERVICE AREA CUSTOMERS 100 100 NONLOCAL SERVICE AREA CUSTOMERS 100 100 REVIEWING CREDIT LINES OR LOAN APPLICATIONS 94 LARGE BANKS (DEPOSITS OF Sl BILLION OR MORE) AND 1/ SURVEY OF LENDING PRACTICES AT S1 BILLION) REPORTING IN THE FEDERAL RESERVE QUARTERLY INTEREST RATE SURVEY AS OF 71 SMALL BANKS (DEPOSITS OF LESS THAN MAY 15S 1973. UNDER SI NOT FOR QUOTATION OR PUBLICATION TABLE 2 (CONTINUED) OF BANK MUCH FIRMER POLICY SIZE NUMBER ANSWERING QUESTION S1 & OVER UNDER S1 SI & OVER UNDER $1 - TOTAL DEPOSITS IN BILLIONS MODERATELY ESSENTIALLY MODERATELY FIRMER UNCHANGED EASIER POLICY POLICY POLICY S1 & OVER UNDER 51 Sl & OVER UNDER S1 Sl & OVER UNDER Sl MUCH EASIER POLICY 51 1 OVER UNDER S1 FACTORS RELATING TO APPLICANT 2/ VALUE AS DEPOSITOR OR SOURCE OF COLLATERAL BUSINESS 100 100 0 INTENDED USE OF THE LOAN 100 100 0 LENDING TO "NONCAPTIVE" FINANCE COMPANIES TERMS AND CONDITIONS: INTEREST RATES CHARGED 0 COMPENSATING OR SUPPORTING BALANCES 0 ENFORCEMENT OF BALANCE REQUIREMENTS 0 ESTABLISHING NEW OR LARGER CREDIT LINES 0 NUMBER ANSWERING QUESTION CONSIDERABLY LESS WILLING MODERATELY LESS WILLING ESSENTIALLY UNCHANGED Sl i OVER Si & OVER 51 & OVER UNDER Sl PARTICIPATION LOANS WITH CORRESPONDENT BANKS 100 100 19 10 LOANS TO BROKERS 100 100 31 24 SI & OVER UNDER S1 UNDER S1 UNDER Sl MODERATELY MORE WILLING 51 & OVER UNDER Sl WILLINGNESS TO MAKE OTHER TYPES OF LOANS TERM LOANS TO BUSINESSES CONSUMER INSTALMENT LOANS SINGLE FAMILY MORTGAGE LOANS MULTI-FAMILY MORTGAGE LOANS ALL OTHER MORTGAGE LOANS 2/ FOR THESE FACTORS, FIRMER MEANS THE FACTORS WERE CONSIDERED MORE IMPORTANT CPBETT RFOUESTS* AND EASTER MEANS THEY WERE LESS IMPORTANT. IN MAKING DECISIONS FOR APPROVING CONSIDERABLY MORE WILLING $1 & OVER UNDER Sl TABLE 3 NOT FOR QUOTATION OR PUBLICATION QUARTERLY SURVEY OF CHANGES IN BANK LENDING PRACTICES AT SELECTED LARGE BANKS IN THE U.S. STATUS OF POLICY ON MAY 15, 1973 COMPARED TO THREE MONTHS EARLIER (NUMBER OF BANKS) ALL DSTS BOSNEW YORK TON TOTAL CITY OUTSIDE PHILADEL. CLEVE- RICHLAND MONO ATLAN- CHICST. TA AGO LOUIS 1/ MINNE- KANS. APOLIS CITY DALLAS SAN FRAN STRENGTH OF DEMAND FOR COMMERCIAL AND INDUSTRIAL LOANS (AFTER ALLOWANCE FOR BANKtS USUAL SEASONAL VARIATION) COMPARED TO 3 MONTHS AGO 125 MUCH STRONGER MODERATELY STRONGER ESSENTIALLY UNCHANGED MODERATELY WEAKER MUCH WEAKER 23 69 30 3 0 ANTICIPATED DEMAND NEXT THREE MONTHS 125 MUCH STRONGER MODERATELY STRONGER ESSENTIALLY UNCHANGED MODERATELY WEAKER MUCH WEAKER 13 69 41 2 0 1 5 2 0 0 5 8 6 1 0 2 6 0 1 0 3 2 6 0 0 2 1 2 1 0 1 5 4 1 0 2 8 2 0 0 2 8 0 0 0 4 6 5 0 0 4 3 1 4 3 0 0 2 13 5 0 0 1 6 2 0 0 1 7 3 0 0 0 > 0 1 0 1 3 7 0 0 2 4 6 0 0 1 7 2 0 0 2 9 3 1 0 1 5 2 0 0 3 12 5 0 0 1 5 3 0 0 2 7 2 0 0 3 3 0 0 0 1 8 2 0 0 3 9 0 0 0 2 5 3 0 0 2 4 2 0 0 4 6 10 0 0 1 3 5 0 o 3 3 5 0 0 2 2 2 0 1 5 5 0 0 2 4 6 0 0 2 2 6 0 0 1 7 1 0 0 0 8 5 0 0 u U 1 7 1 0 0 0 5 8 0 0 t L 0 0 2 6 1 0 0 0 9 4 0 0 1 6 2 0 0 0 5 8 0 0 1 1 1 0 0 0 3 4 2 0 U 0 2 1 U 0 0 6 3 7 5 0 0 3 4 2 0 0 1 2 0 0 0 0 7 8 0 0 2 4 3 0 0 0 3 0 0 0 2 0 9 0 0 U 4 LENDING TO NONFINANCIAL BUSINESSES TERMS AND CONDITIONS INTEREST RATES CHARGED MUCH FIRMER POLICY MODERATELY FIRMER POLICY ESSENTIALLY UNCHANGED POLICY MODERATELY EASIER POLICY MUCH EASIER POLICY COMPENSATING BALANCES MUCH FIRMER POLICY MODERATELY FIRMER POLICY ESSENTIALLY UNCHANGED POLICY MODERATELY EASIER POLICY MUCH EASIER POLICY 1/ 125 24 76 25 0 0 125 17 51 57 0 0 SURVEY OF LENDING PRACTICES AT 125 LARGE BANKS REPORTING IN THE FEDERAL RESERVE QUARTERLY INTEREST RATE SURVEY MAY 15f 1973. AS OF 1 4 5 U NOT FOR QUOTATION OR PUBLICATION TABLE 3 (CONTINUED) ALL DSTS LENDING TO NONFINANCIAL BUSINESSES BOSNEW YORK TON TOTAL CITY OUTSIDE PHILADEL. CLEVE- RICHLAND MOND ATLAN- CHICST. TA AGO LOUIS MINNEAPOLIS KANS. CITY DALLAS SAN FRAN 0 1 4 3 0 0 0 0 o 0 5 3 1 0 0 3 10 0 0 0 2 11 0 0 TERMS AND CONDITIONS STANDARDS OF CREDIT WORTHINESS MUCH FIRMER POLICY MODERATELY FIRMER POLICY ESSENTIALLY UNCHANGED POLICY MODERATELY EASIER POLICY MUCH EASIER POLICY MATURITY OF TERM LOANS MUCH FIRMER POLICY MODERATELY FIRMER POLICY ESSENTIALLY UNCHANGED POLICY NODERATELY EASIER POLICY MUCH EASIER POLICY 125 13 42 69 1 0 1 3 4 0 0 3 5 12 0 0 0 2 7 0 0 3 3 5 0 0 0 3 3 0 0 3 3 5 0 0 2 3 7 0 0 2 3 5 O 0 0 7 8 0 0 0 3 5 0 0 1 B 11 0 0 0 4 5 0 0 1 4 6 o 0 0 4 2 0 0 0 5 6 0 0 1 3 8 0 0 2 1 7 0 0 0 4 11 0 0 1 2 6 0 0 0 0 1 7 0 0 1 8 11 0 0 0 3 6 0 0 1 5 5 0 0 0 3 3 0 0 0 3 8 0 0 1 3 8 0 0 1 2 7 0 0 0 4 11 0 0 1 2 6 U O 1 4 3 0 0 5 7 8 0 0 0 5 4 0 0 5 2 4 0 0 2 2 2 0 0 2 4 5 0 0 2 6 4 0 0 3 4 3 0 0 3 5 7 0 0 e 0 0 1 7 12 0 0 0 2 T 0 0 1 5 S 0 0 0 3 3 0 0 0 2 9 0 0 1 2 9 0 0 1 2 7 0 0 0 5 10 0 0 1 2 6 0 0 1 3 5 125 7 39 78 1 0 2 1 J 1 0 0 0 0 1 2 5 1 0 0 2 1 0 0 U 4 5 0 U 0 2 6 1 0 0 3 10 0 0 3 3 1 0 1 6 6 0 0 0 2 7 0 0 0 3 10 0 0 REVIEWING CREDIT LINES OR LOANS ESTABLISHED CUSTOMERS MUCH FIRMER POLICY MODERATELY FIRMER POLICY ESSENTIALLY UNCHANGED POLICY MODERATELY EASIER POLICY MUCH EASIER POLICY NEW CUSTOMERS MUCH FIRMER POLICY MODERATELY FIRMER POLICY ESSENTIALLY UNCHANGED POLICY MODERATELY EASIER POLICY MUCH EASIER POLICY LOCAL SERVICE AREA CUSTOMERS MUCH FIRMER POLICY MODERATELY FIRMER POLICY ESSENTIALLY UNCHANGED POLICY MODERATELY EASIER POLICY MUCH EASIER POLICY 125 37 83 1 0 125 28 48 48 1 0 3 4 0 0 1 0 0 2 4 O 125 4 32 89 0 0 6 0 0 0 2 1 0 0 U e 1 U U NOT FOR QUOTATION OR PUBLICATION TABLE 3 (CONTINUED) ALL LENDIN NONFIOSTS TO BOSTON LENOING TO NONFINANCIAL NEW YORK PHIL- TOTAL CITY OUTSIDE ADEL. CLEVE- RICHLAND MONO ATLAN- CHICST. TA AGO LOUIS MINNE- KANS. CITY APOLIS DALLAS SAN FRAN BUSINESSES REVIEWING CREDIT LINES OR LOANS NONLOCAL SERVICE AREA CUST MUCH FIRMER POLICY MODERATELY FIRMER POLICY ESSENTIALLY UNCHANGED POLICY MODERATELY EASIER POLICY MUCH EASIER POLICY 125 25 42 57 1 0 0 4 4 0 0 6 5 9 0 0 0 3 6 0 0 6 2 3 0 0 0 3 3 0 0 1 4 6 0 0 2 4 6 0 0 4 4 2 0 0 4 5 6 0 0 2 e b 0 0 g 0 1 0 0 4 0 5 3 0 0 1 10 9 0 0 0 2 7 0 0 1 8 2 0 0 2 2 2 0 0 1 5 5 0 0 2 7 3 0 0 3 6 1 0 0 2 5 8 0 0 e 4 3 0 0 1 I 1 0 0 1 0 3 5 0 0 1 6 13 0 0 0 3 6 0 0 1 3 7 0 0 1 2 3 0 0 2 3 6 0 0 1 4 7 0 0 3 4 3 0 0 5 9 0 0 U 1 8 0 0 0 1 2 0 0 0 3 5 0 0 2 7 11 0 0 1 1 7 0 0 1 6 1 2 3 0 0 0 6 5 0 0 4 S 3 0 0 1 4 5 0 0 1 6 a 0 0 1 3 1 1 4 4 0 0 0 S 8 0 0 t 0 U 3 4 2 0 0 0 6 7 0 0 0 1 0 0 2 3 4 0 0 0 4 9 0 0 1 5 3 0 0 1 6 6 0 0 e J 1 U FACTORS RELATING TO APPLICANT 2/ VALUE AS DEPOSITOR OR SOURCE OF COLLATERAL BUSINESS MUCH FIRMER POLICY MODERATELY FIRMER POLICY ESSENTIALLY UNCHANGED POLICY MODERATELY EASIER POLICY MUCH EASIER POLICY INTENDED USE OF LOAN MUCH FIRMER POLICY MODERATELY FIRMER POLICY ESSENTIALLY UNCHANGED POLICY MODERATELY EASIER POLICY MUCH EASIER POLICY 125 18 58 49 0 0 4 125 13 36 76 0 0 LENDING TO "NONCAPTIVE" FINANCE COMPANIES TERMS AND CONDITIONS INTEREST RATES CHARGED MUCH FIRMER POLICY MODERATELY FIRMER POLICY ESSENTIALLY UNCHANGED POLICY MODERATELY EASIER POLICY MUCH EASIER POLICY 125 15 51 59 0 0 0 0 U 0 1 1 0 0 2/ FOR THESE FACTORS. FIRMER MEANS THE FACTORS WERE CONSIDERED MORE IMPORTANT IN MAKING DECISIONS FOR APPROVING CREDIT REQUESTS, AND EASIER MEANS THEY WERE LESS IMPORTANT. J 4 U U TABLE 3 (CONTINUED) NOT FOR QUOTATION OR PUBLICATION ALL DSTS BOSNEW YORK TON TOTAL CITY OUTSIDE PHILADEL. CLEVE- RICHM LAND MONO ATLAN- CHICST. TA AGO LOUIS NINNE- KANS* APOLIS CITY DALLAS SAN FRAN LENDING TO "NONCAPTIVE" FINANCE COMPANIES TERMS AND CONDITIONSI SIZE OF COMPENSATING BALANCES MUCH FIRMER POLICY MODERATELY FIRMER POLICY ESSENTIALLY UNCHANGED POLICY MODERATELY EASIER POLICY MUCH EASIER POLICY ENFORCEMENT OF BALANCE REQUIREMENT MUCH FIRMER POLICY MODERATELY FIRMER POLICY ESSENTIALLY UNCHANGED POLICY MODERATELY EASIER POLICY MUCH EASIER POLICY ESTABLISHING NEW OR LARGER CREDIT LINES MUCH FIRMER POLICY MODERATELY FIRMER POLICY ESSENTIALLY UNCHANGED POLICY MODERATELY EASIER POLICY MUCH EASIER POLICY 125 8 21 95 1 0 0 00 1 1 9 0 0 3 1 8 0 0 1 3 6 0 0 0 2 12 1 0 1 8 0 a 0 1 2 0 1 1 r 0 0 3 6 0 0 0 4 9 0 0 1 5 5 0 0 1 0 5 0 0 1 1 9 0 0 3 2 7 0 0 1 3 6 0 0 0 1 14 0 0 1 1 7 0 0 0 1 2 0 0 1 1 1 0 0 0 4 5 0 0 0 6 7 0 0 0 3 6 0 0 2 4 5 0 0 1 3 2 0 0 1 a 2 0 0 4 4 4 0 0 2 3 5 0 0 2 5 8 0 0 4 a 3 0 0 0 1 2 0 0 e 4 1 U 0 2 4 3 0 0 0 6 7 0 0 3 4 13 0 0 1 1 7 0 0 2 3 6 0 0 1 3 2 0 0 0 5 6 0 0 2 1 8 1 0 1 5 4 0 0 0 6 9 0 0 1 4 4 0 0 1 1 1 0 0 d 9 b U 0 2 2 4 1 0 0 4 9 0 0 0 0 17 2 0 0 0 8 0 0 0 0 9 2 0 0 0 6 0 0 1 0 10 0 0 0 0 10 2 0 0 0 10 0 0 0 0 15 0 a u 0 8 1 0 0 3 0 0 0 U U 1 U 0 0 8 0 1 0 0 10 3 0 0 1 7 0 1 3 16 0 0 1 6B 0 0 1 2 B 0 1 0 0 2 6 0 0 1 8 11 0 0 0 3 6 0 0 1 2 5 0 0 2 7 11 0 0 0 4 3 1 0 0 0 6 2 0 125 9 30 86 0 0 125 21 49 55 0 0 MILLINGNESS TO MAKE OTHER TYPES OF LOANS TERM LOANS TO BUSINESSES CONSIDERABLY LESS WILLING MODERATELY LESS WILLING ESSENTIALLY UNCHANGED MODERATELY MORE WILLING CONSIDERABLY MORE WILLING CONSUMER INSTALMENT LOANS CONSIDERABLY LESS WILLING MODERATELY LESS WILLING ESSENTIALLY UNCHANGED MODERATELY MORE WILLING CONSIDERABLY MORE WILLING 125 13 41 68 3 0 124 1 0 111 11 1 NOT FOR QUOTATION OR PUBLICATION WILLINGNESS TO MAKE TABLE 3 (CONTINUED) ALL DSTS OTHER BOSNEW YORK TON TOTAL CITY OUTSIDE PHILADEL. CLEVE- RICHLAND MOND ATLAN* CHICST. TA AGO LOUIS MINNE- KANS* APOLIS CITY DALLAS SAN FRAN 1 2 6 O D 0 4 9 0 0 1 2 6 0 0 1 3 9 0 0 o U 1 2 5 1 0 1 4 B 0 0 TYPES OF LOANS SINGLE FAMILY MORTGAGE LOANS 123 CONSIDERABLY LESS WILLING MODERATELY LESS WILLING ESSENTIALLY UNCHANGED MODERATELY MORE WILLING CONSIDERABLY MORE WILLING 3 16 100 4 0 MULTIFAMILY MORTGAGE LOANS CONSIDERABLY LESS MILLING MODERATELY LESS WILLING ESSENTIALLY UNCHANGED MODERATELY MORE WILLING CONSIDERABLY MORE WILLING ALL OTHER MORTGAGE LOANS CONSIDERABLY LESS WILLING MODERATELY LESS WILLING ESSENTIALLY UNCHANGED MODERATELY MORE WILLING CONSIDERABLY MORE WILLING PARTICIPATION LOANS WITH CORRESPONDENT BANKS CONSIDERABLY LESS WILLING MODERATELY LESS WILLING ESSENTIALLY UNCHANGED MODERATELY MORE WILLING CONSIDERABLY MORE WILLING LOANS TO BROKERS CONSIDERABLY LESS WILLING MODERATELY LESS WILLING ESSENTIALLY UNCHANGED MODERATELY MORE WILLING CONSIDERABLY MORE WILLING NUMBER OF BANKS 0 2 6 0 0 0 1 17 0 0 0 0 7 0 0 0 1 10 0 0 0 0 6 0 0 0 1 10 0 0 2 2 7 1 0 0 1 8 1 0 0 1 13 10 0 0 0 8 0 0 3 0 0 0 0 8 0 0 1 2 14 0 0 0 0 7 0 0 1 2 7 0 0 0 2 4 0 0 0 3 8 0 0 2 3 7 0 0 1 0 9 0 0 0 2 13 0 0 0 4 S 0 0 0 0 3 0 0 0 1 T 0 0 4 14 0 0 1 7 0 0 1 3 7 0 0 0 2 4 0 0 1 1 9 1 0 1 4 7 0 0 1 1 8 0 0 0 2 12 1 0 0 2 7 0 0 0 0 3 0 0 0 2 6 0 0 2 3 15 0 0 0 2 7 0 0 2 1 8 0 0 0 3 3 0 0 0 3 8 0 0 2 0 10 0 0 0 1 9 0 0 0 2 13 0 0 0 0 8 I 0 0 0 3 0 0 U U 7 0 0 1 3 5 0 0 0 0 13 0 0 0 2 5 1 0 1 4 14 1 0 0 1 8 0 0 1 3 6 1 0 1 3 2 0 0 0 6 5 0 0 2 3 7 0 0 0 3 7 0 0 1 2 12 0 0 1 2 6 0 0 0 1 a 0 0 1 3 2 4 0 0 1 5 7 0 0 0 a 7 0 0 122 6 24 92 0 0 U 4 6 0 0 124 7 26 88 3 0 1 1 4 123 5 17 100 1 0 124 11 34 77 2 0 125 1 0 0 C-1 SUPPLEMENTAL APPENDIX C QUARTERLY SURVEY OF BANK LOAN COMMITMENTS * April 30, 1973 The April 30 Quarterly Survey of Bank Loan Commitments indicated no growth in unused commitments over the three month interval from the previous survey; in all previous surveys for the last three years there had been some growth in unused commitments. Unused C & I commitments actually decreased over the interval, while commitments for loans to nonbank financial institutions and for real estate mortgages grew at rates substantially lower than in the previous survey. Table 1A.) (See Although new commitments (Table 1B) grew at a high rate, these partly represented seasonal renewals and reviews of credit lines and were otherwise offset by large takedowns, expirations, and cancellations (Table 1C). Over sixty per cent of the respondents to the survey expected an increase in the rate of takedowns over the next three months. In addition, nearly seventy per cent reported more restrictive commitment policies (Table 2). Unused commitments to C & I firms, constituting the largest part of the total, actually declined .9 per cent over the three month period from the previous survey date. This decline was attributable to fairly substantial reductions in confirmed lines of credit, though, in addition, the rate of increase in commitments for term and revolving credits was lower than for any survey period in a year. Unused commitments to nonbank financial institutions, the next largest component in the total, grew by 1.7 per cent--also the smallest rate of increase in a year. * Weakness in commitments to finance Prepared by Richard H. Puckett, Senior Economist, Banking Section, Division of Research and Statistics. C- 2 companies was only partly offset by strength in commitments to other nonbank financial institutions, which perhaps reflects institutions such as savings and loan associations attempting to secure alternative sources of funds in the face of slackening deposit inflows. The growth rate in unused commitments for mortgages was appreciably stronger than that for loans to nonbank financial institutions or for C & I loans. This relative strength was almost entirely attributable to the rapid growth in commitments for residential mortgages which was offset only partially by a decline in commitments in the nonresidential sector. Despite the zero growth shown in unused commitments, new commitments were strong and apparently heavily influenced by seasonal reviews and renewals of expiring lines of credit. are focused on confirmed lines of credit. Such reviews often And, new commitments for confirmed lines grew at a rate of nearly 25 per cent over the three month interval. This large increase was partly offset by substantial decreases in other new commitments for C & I purposes such as for term loans and revolving credits. New commitments to nonbank financial institutions were strong, except for mortgage warehousing, while new commitments for real estate mortgages actually declined. Takedowns, expirations, and cancellations, as might be expected, were also large--particularly for confirmed C & I lines where, as noted previously, seasonal reviews were of particular importance. Takedowns, expirations, and cancellations were large for C & I term and revolving credits as well. C- 3 In reports on commitment policies, of 48 respondents, the 15 that reported unused commitments had risen were outweighted by the 21 that indicated unused had declined. Moreover, 30 stated that takedowns in the next three months probably would rise, as against only 1 that expected a decline. And, 33 said commitment policies compared to three months earlier were more restrictive, while none moved in the direction of easier policies. Of the 33 adopting a more restrictive stance, 16 pointed to both reduced funds availability and increased commitment demands as the sources of the policy change; 9 cited increased demand alone; 8 isolated reduced funds availability as the sole factor. (Table 3). NOT FOR QUOTATION OR PUBLICATION QUARTERLY SURVEY OF BANK LOAN COMMITMENTS AT SELECTED LARGE U.S. BANKS *1 (AS OF APR. 30, 1973) TABLE 1A UNUSED COMMITMENTS (DOLLAR AMOUNTS NUMBER OF BANKS UNUSED COMMITMENTS C C I FIRMS NONBK FINAN INSTS REAL ESTATE MORTG MEMO: CONSTRUCTION LOANS INCL ABOVE COMMERCIAL E INDUST FIRMS TERM LOANS REVOLVING CREDITS TOT: TERM & REV *2 CONFIRMED LINES OTHER COMMITMENTS NONBANK FINANCIAL INSTITUTIONS FINANCE COMPANIES MTGE WAREHOUSING ALL OTHER REAL ESTATE MORTGES RESIDENTIAL OTHER *1 *2 (1) (2) AS OF AS OF APR. 30 JAN. 31 1973 1973 AMT I CHG -IC I. AAM T 1% CHr. I I 42 42 (3) ( 4) AS OF AS OF I OCT. 31 JIUL. 31 I 1972 1 972 AMT I2 C HfI I AMT I rCH, I 42 I 82.01 60.31 15.61 6.11 5.11 0.01 -0.91I 1.71 3.81 6.61 82.01 60.81 15.31 5.91 4.71 3.41 1.71 7.01 12. 5 16.7| 79.41 59.8 14.31 5.31 4.11 I I 4.01 2.11 1.21 -1.61 -3.81 -1,81 0.9 9.3! 42 | I I I I I I (5) AS OF APR. 30 1972 AMT It I I rHr .... I . 10.01 2.01 3.41 1 I 8.61 2.41 4.31 14.6! 18.41 36.8I 4.61 -0. 1 2.91 8.41 15.51 8.41 2.21 3.71 12.6) -1.41 2.21 3.71 19.01 9.01 1.81 3.41 AMT .... It . . ---- rw... NOTE: MINOR I I I I I I 66.9 1 51.1 1 12.2 -1 3.6 I 2.9'1 2.91 2.41 6.21 1.0| I I I I I I 42 4.71 4.61 3.31 10.71 8.21 75.81 57.21 13.91 4.71 3.81 5.21 4.71 5.71 8.91 8.71 2.5| 2.71 1.0! 5.91 8.21 72.11 54.61 13.11 4.41 3.51 j 22.41 4.11 6.91 2.71 11.31 I I 0.91 0.41 11.11 2.61 14.01 17.21 35.91 4.11 2.21 3.91 4.91 13.51 3.21 -8.11 24.21 5.0! 3.91 6.71 13.61 9.21 2.11 1 13.91 4.81 70.31 53.21 13.01 4.11 3.2) 16.41 34.21 4.01 5.0) -3.11 -1.71 4.61 5.41 2.11 14.01 16.71 32.7! 3.81 2.71 1.21 -6.61 2.71 1.21 5.61 2.3! I 8.31 2.2) 3.41 2.21 8.21 13.91 8.11 2.CG 2.91 0.71 5.11 -0.81 8.11 1.91 3.01 I 5.81 2.71 12.21 4.11 2.3 ) 19.91 13.6 1 1.91 16.5 S 3.91 31.0 1 1.71 3.7 I 1.41 I I1 42 65.11 50.01 11.71 3.41 4.7 5.3 3.3 1.1 2.91 5.4 1 I I 1.91 13.31 6.9 3.0 15.91 30.41 3.2 5.2 3.61 17.7 7.7 1 5.21 1.9 S 5.01 0.21 2.6 1 7.31 1.81 1.9 10.6 2.61 2.6 1.3 2.3 1.21 Z.21 S I I 1 I I I I 1 2.01 2.8 12.01 6.81 1.81 2.61 13.51 1.31 1.61 2.61 16.61 11.81 BANKS PARTICIPATING IN THE QUARTERLY INTEREST RATE SURVEY -- MAINLY BANKS WITH TOTAL DEPOSITS OF $1 THE TOTAL MAY EXCEED THE SUM OF THE PREVIOUS TWO ITEMS SINCE SOME BANKS REPORT ONLY TOTALS. ** . ( 7) (8) AS OF AS OF OCT .29 JUL. 31 I 1971 1.971 IT I aN 1% CHG I ANT I1 CHG .... I I 2.41 3.71 (6) AS OF JAN. 31 1972 42 42 I 3.41 14.91 19.01 37.2 4.61 I 8.51 2.41 4.71 I I I I 3.61 15.21 19.21 36.61 4.44 IN BILLIONS) INCONSISTENCIES MAY OCCUR IN FIGURES DUE TO ROUNDING. ** 1 13.71 2.3t BILLION OR MORE. 12.3 -4.0 NOT FOR QUOTATION OR PUBLICATION QUARTERLY SURVEY OF BANK LOAN COMMITMENTS AT SELECTED LARGE U.S. BANKS *1 (AS OF APR. 30, 1973) TABLE 1B NEW COMMITMENTS (DOLLAR AMOUNTS IN BILLIONS) (2) (1) AS OF APR. 30 1973 AMT IJ CHG I AS OF JAN. 31 1973 AMT IE CHG 13) | AS OF OCT. 31 I I 1972 I AMT IX CHG I I NUMBER OF BANKS 42 I 42 (4) 15) AS O F AS OF I JUL. 1 I A PR. 30 1972 2 1972 12 CHG ANT It CHG I AMT 42 I I I 42 1 I I 42 I GRAND TOTAL NEW COMMITMENTS C 6 I FIRMS NONBK FINAN INSTS REAL ESTATE MORTG MEMO: CONSTRUCTION LOANS INCL ABOVE COMMERCIAL C INDUST FIRMS TERM LOANS REVOLVING CREDITS TOT: TERM & REV *2 CONFIRMED LINES OTHER COMMITMENTS NONBANK FINANCIAL INSTITUTIONS FINANCE COMPANIES MTGE WAREHOUSING ALL OTHER 42 I I I 23.6) 5.61 2.61 1.91 8.31 8.31 16.31 -5.81 0.61 29.41 5.31 28.01 -23.61 21.81 3.11 13.31 9.81 21.11 -24.91 4.31 -31.61 2.51 16.01 1.71 26.61 4.81 2.81 1.81 9.31 36.61 28.11 6.31 2.21 1.31 35.31 38.01 33.31 12.31 10.01 I 3.61 3.51 -12.01 -3.71 5.21 9.01 -5.51 13.41 24.91 1.21 -21.71 4.01 5.41 9.5( 10.81 1.61 34.81 -0.61 10.21 -2.31 2.81 2.91 -17.41 5.41 -1.81 8.61 -7.51 11.01 -36.91 10.01 1.51 I 5.51 9.31 3.61 5.51 9.31 17.51 1.41 1 I I 6.01 1.41 -13.91 1 23.41 18.21 3.61 1.61 1.11 1 1. 2.11 1.61 1.7) 11.11 22.41 11.31 -46.21 -17.01 1.51 -9.21 10.01 1.01 1.51 3.61 1.01 1.71 42.71 3.9( 36.21 10.31 8.51 25.51 1.91 4.81 -5.71 38.01 51.51 1.91 19.71 1.11 22.51 1.11 3.61 16.81 2.91 1.51 1.0 -8.81 4.41 6.51 17.61 5.41 4.81 57.0) 3.81 6.21 9.51 1.1 9.91 1.71 1 1.7) 0.91 1.01 -0.41 65.91 57.11 0.81 0.81 -2.21 6.01 42 I -38.71 -48.11 -24.91 -24.21 I I I I 17.31 -44.61 -30.41 -36.61 -68.91 0.71 -40.31 NOTE: MINOR INCONSISTENCIES MAY OCCUR IN FIGURES DUE TO ROUNDING. ** 35.01 27.41 5.51 2.11 1.41 43.0 45.2 17.8 29.7 16.4 1.9 -0.1 40.6 29.2 8.91 35.1 14.91 3.51 291.1 6.81 1.91 6.B1 63.6 3.51 46.2 0.91 1.11 -10.7 I I 0.81 -13.01 0.81 -33.91 *1 BANKS PARTICIPATING IN THE QUARTERLY INTEREST RATE SURVEY -- MAINLY BANKS WITH TOTAL DEPOSITS OF $1 BILLION OR MORE. *2 THE TOTAL MAY EXCEED THE SUM OF THE PREVIOUS TWO ITEMS SINCE SOME BANKS REPORT ONLY TOTALS. ** AS OF JUL. 31 1971 AMT 12 rHr I 0.51 -40.11 I 19.11 28.31 CHIG _. I I I I I I 1.71 -52.61 I I 0 .91 1 .01 (8) I 21.21 -39.41 2.01 I I1 2 .51I 0 .91 1 .31 I I I I I I I 2.21 I I1 I1 1 1.2) 1.61 0,8I 1 42 I .1 18.01 0.81 -14.21 31.41 2.31 2.51 61.21 11.61 26.71 48.31 8.21 27 .01 15.61 20 .41 12.11 4 .71 29.91 1 .91 23.91 1.21 11.71 I1 I1 I1 I1 2 .21 10.91 4 .01 11.71 7 .31 12.11 11 .81 18.71 1 .31 -25.81 (7) AS OF OCT. 29 1971 I -AM I 31.91 I REAL ESTATE MORTGES RESIDENTIAL OTHER ( 61 AS OF JAN . 31 1 972 I ANT 12 CH 0.91 1.21 51.9 16.7 NOT FOR QUOTATION OR PUBLICATION QUARTERLY SURVEY OF BANK LOAN COMMITMENTS AT SELECTED LARGE U.S. BANKS *1 (AS OF APR. 30, 1973) TABLE 1C TAKEDOWNS, EXPIRATIONS, AND CANCELLATIONS *2 (DOLLAR AMOUNTS IN BILLIONS) (1) AS OF APR. 30 1973 AMT 12 CHn I (2) AS OF JAN. 31 1973 I ANT I!I fWr' _yLy_ I _ 42 NUMBER OF BANKS 42 TOTAL TAKEDOWNS C & I FIRMS NONBK FINAN INSTS REAL ESTATE MORTG MEMO: CONSTRUCTION LOANS INCL ABOVE 31.91 24.1) 5.4( 2.41 1.51 I I 28.01 3.31 4.91 8.71 14.01 1.41 48.31 COMMERCIAL & INDUST FIRMS TERM LOANS REVOLVING CREDITS TOT: TERM C REV *4 CONFIRMED LINES OTHER COMMITMENTS NONBANK FINANCIAL INSTITUTIONS FINANCE COMPANIES MTGE WAREHOUSING ALL OTHER 2.71 0.81 1.91 28.61 25.61 26.81 20.81 3.81 28.11 23.41 ! 1.21 2.11 I I 24.21 31.21 27.71 24.21 24.11 25.31 28.41 3.61 5.11 8.01 10.41 1.61 (31 AMT _1 I I I 24.61 25.51 20.11 26.51 19.71 I9 __ CHr II _ 0.9) 1.51 27.6) 28.51 It _ rHR _111 AMT _11 42 23.5| 18.51 23.71 3.81 2.01 1.41 21.11 27.81 25.31 | I I (7) AS OF OCT. 29 1971 (6) AS OF JAN. 31 1972 AMT ,111 IT, rur. ,: Y I I I 51.41 25.41 I 32.91 25.61 5.51 1.81 1.o 42 42 30.21 30.91 28.41 27.51 21.51 25.21 19.01 4.61 1.71 0.91 25.91 25.81 25.81 28.11 21.51 20.11 16.21 2.81 1.11 0.81 22.21 23.31 17.71 20.71 20.41 31.81 21.81 25.61 18.11 1.11 21.01 24.91 26.71 26.41 I 10.11 1.11 I 1.91 0.81 .I 43.01 24.81 28.71 21.51 18.81I 39.71 0.8| 19.51 55.91 5.01 26.21 8.51 33.01 30.6) 23.41 1.31 18.11 1.21 3.21 15.81 26.41 24.01 I1 IT, rUw IIIY I 42 I I 2.41 4.8) 7.41 aMT ~111 (8) AS OF JUL. 31 1971 NOTE: MINOR INCONSISTENCIES rucaIt 3.41 0.81 1.31 29.11 26.61 27.91 2.11 5.41 7.61 10.31 1.11 2.51 0.81 1.31 48.31 28.41 31.71 23.11 21.3) 23.21 28.91 30.21 I 0.91 0.91 30.91 24.81 2.11 4.11 6.31 8.21 1.61 42 19.31 15.61 2.41 I 1.I 1.1 28.01 28.21 1 50.01 22.51 27.51 20.11 30.21 I1 1.21 0.91 0.71 I 13.11 30.71 19.51 I 1.31 0.51 0.71 25.41 17.61 0.61 0.71 0.51 0.51 23.41 16.51 26.81 25.61 I I 1.81 3.51 5.61 9.01 1.01 I 1 MAY OCCUR IN FIGURES DUE TO ROUNDING. ** 32.01 24.81 5.21 2.01 1.21 0.0 0.0 0.0 0.0 0.0 I 44.01 1.71 20.51 6.41 25.31 6.41 22.41 13.41 22.11 3.01 1 I1 14.41 3.41 19.61 0.71 19.91 1.01 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 I 1I 0.71 1.01 22.41 31.31 23.91 *1 BANKS PARTICIPATING IN THE QUARTERLY INTEREST RATE SURVEY -- MAINLY BANKS WITH TOTAL DEPOSITS OF $1 BILLION OR MORE. *2 FOR THIS TABLE THE PERCENTAGE CHANGE COLUMN CONTAINS THE RATIC OF TAKEDOWNS TO AVAILABLE COMMITMENTS; EXPRESSED AS A (AVAILABLE COMMITMENTS = UNUSED COMMITMENTS FROM THE PREVIOUS QUARTER + NEW COMMITMENTS IN THE CURRENT QUARTER). *3 PERCENTAGE CHANGE NOT COMPUTED FOR THIS QUARTER DUE TO THE SIZE CONSTRAINTS OF THE MATRIX. *4 THE TOTAL MAY EXCEED THE SUM OF THE PREVIOUS TWO ITEMS SINCE SOME BANKS REPORT ONLY TOTALS. ** AUT LlYI~1v ~~IIILL I 42 24.41 IT ru. _ ,.,, -- I I1 1.91 0.81 0.8) 1.31 _AMT j 5) AS OF APR. 30 1972 I I REAL ESTATE MORTGES RESIDENTIAL OTHER (4) AS OF JUL. 31 1972 AS OF OCT. 31 1972 0.81 1.31 0.0 0.0 PERCENTAGE. NOT FOR QUOTATION OR PUBLICATION QUARTERLY SURVEY OF BANK LOAN COMMITMENTS AT SELECTED LARGE U.S. BANKS (AS OF APR. 30, 1973) TABLE 2: VIEWS ON COMMITMENT POLICY (1) (2) (3) (4) (5) (6) (7) (8) APR. 30 1973 JAN. 31 1973 OCT. 31 1972 JULY 31 1972 APR. 30 1972 JAN. 31 1972 OLT. 29 1971 JULY 31 1971 TOTAL NUMBER OF BANKS RESPONDING: 48 48 48 48 48 48 48 48 UNUSED COMMITMENTS IN THE PAST THREE MONTHS HAVE: RISEN RAPIDLY RISEN MODERATELY REMAINED UNCHANGED DECLINED MODERATELY DECLINED RAPIDLY 1 14 12 18 3 2 23 17 6 0 1 24 19 4 0 2 17 21 8 0 20 21 7 1 22 19 6 0 0 25 15 8 0 1 19 19 9 0 0 TAKEDOWNS IN THE NEXT THREE MONTHS SHOULD: RISE RAPIDLY RISE MODERATELY REMAIN UNCHANGED DECLINE MODERATELY DECLINE RAPIDLY 2 28 17 1 0 4 33 11 0 0 0 28 20 0 0 0 26 21 1 0 0 26 20 2 0 0 14 28 6 0 0 13 31 4 0 0 16 31 1 0 COMMITMENT POLICY COMPARED TO THREE MONTHS AGO ISI MUCH MORE RESTRICTIVE SOMEWHAT MORE RESTRICTIVE UNCHANGED LESS RESTRICTIVE MUCH LESS RESTRICTIVE 5 28 15 0 0 0 21 25 1 1 0 5 40 3 0 0 1 42 5 0 0 1 44 3 0 0 0 34 13 1 0 0 37 11 0 0 2 37 9 0 C NOT FCR QUOTATION OR PUBLICATION QUARTERLY SURVEY OF BANK LOAN COMMITMENTS AT SELECTED LARGE U.S. BANKS (AS OF APR. 30, 1973) TABLE 3 (1) APR. 30 1973 INDICATED CHANGE: MORE RESTRICTIVE: INCREASED DEMAND REDUCED FUNDS BOTH LESS RESTRICTIVE: INCREASED FUNDS DECREASED DEMAND BOTH EXPLANATION OF CHANGES IN NEW COMMITMENT POLICY (2) JAN. 31 1973 (3) OCT. 31 1972 (4) JULY 31 1972 (5) APR. 30 1972 (6) JAN. 31 1972 (7) OCT. 29 1971 18) JULY 31 1971 

Federal Reserve (1973, June 18). Greenbook/Tealbook. Greenbooks, Federal Reserve. https://whenthefedspeaks.com/doc/greenbook_19730619_part3

@misc{wtfs_greenbook_19730619_part3,
  author = {Federal Reserve},
  title = {Greenbook/Tealbook},
  year = {1973},
  month = {Jun},
  howpublished = {Greenbooks, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/greenbook_19730619_part3},
  note = {Retrieved via When the Fed Speaks corpus}
}