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
May 23,
1969
SUPPLEMENTAL NOTES The Domestic Economy Unit sales of new domestic autos declined somewhat in the second ten days of May from the advanced level of the first selling period.
For the first 20 days of May, sales were at an annual rate of
8.6 million units--compared with 8.2 million units in April and 8.7 million units a year earlier. The composite leading indicator rose to a new high in April. The coincident indicator continued to rise fractionally, and the lagging indicator declined slightly.
COMPOSITE CYCLICAL INDICATORS 1963 = 100
12 Leading Indicators 1969 - January February March April
144.3 146.4 145.1 148.2p
5 Coincident Indicators 164.7 166.4 167.3 16 7 .7 p
6 Lagging Indicators 177.8 181.1 182.3 18 1.1p
In addition to those April increases in components of the leading indicator already reported in the Greenbook, nonagricultural placements, durable new orders, and plant and equipment contracts and orders were strong.
To the extent that the April jump in the composite
resulted from a bulge in machinery and equipment orders placed in anticipation of suspension or repeal of the investment tax credit, it is likely that the series will fall back in May.
The Domestic Financial Situation
Mortgage market.
In April, the backlog of outstanding
mortgage commitments--chiefly for residential loans--rose again at all savings and loan associations and New York State mutual savings banks after adjustment for seasonal variation.
The level of the backlog
reached in April was a fifth above a year earlier, when average housing prices and loan amounts were smaller.
However, the current backlog
remains extremely large relative to recent cash flows. The volume of new commitments approved by these institutions, after allowance for seasonal variation, also increased during the month, according to FRB derived estimates.
The rise in new commitments
apparently reflected a more optimistic near-term assessment of cash flows by these lenders, following the March-April reinvestment and tax period.
Moreover, the liberal advance policy expressed by the Federal
Home Loan Bank Board may have given some additional stimulus to savings and loan association lending.
RESIDENTIAL MORTGAGE COMMITMENTS OUTSTANDING AT SELECTED THRIFT INSTITUTIONS Outstanding Commitments Date
Total
All Savings and Loan Associations
'Mutual Savings Banks (N.Y. State)
Month-to-Month Change Mutual All Savings Savings Banks Total and Loan Associations (N.Y. State)
($ Billions, Seasonally Adjusted)
(Per Cent)
1968 January February March April May June
8.4 8.4 8.6 8.7 8.6 8.6
5.8 5.9 6.1 6.2 6.0 5.9
2,6 2.5 2.5 2.5 2.6 2.6
-0.6 0.5 2.0 1.6 -1.5 -0.5
-0.01 1.6 2.5 2.3 -2.4 -1.7
-1.8 -2.0 1.0 0 0.8 2.3 3.2
July
8.8
6.1
2.7
2.8
2.7
August September
9.0 9.1
6.1 6.2
2.9 2.9
1.8 1.5
-0.02 1.6
October November December
9.5 9.7 9.7
6.4 6.5 6.6
3.0 3.2 3.1
3.9 2.8 -0.2
3.6 1.5 1.3
4.4 5.5 -3.0
9.9 10.1 10.3 10.5
6.7 6.9 7.0 7.2
3.2 3.2 3.3 3.3
1.5 2.6 1.7 1.7
1.2 3.3 1.4 2.5
2.2 1.1 2.3 0.2
5.9 1.4
1969 January February March April Note:
Based on seasonally adjusted dollar volume. Data from Federal Home Loan Bank Board and Savings Banks Association of New York State. Reporting savings banks account for about 70 per cent of total mortgage lending in Data for savings banks and S&L's include a minor amount the industry. of nonresidential commitments. Subtotals may not add to totals because of rounding.
Interest rate changes.
Yields on Treasury bills have dropped
around 5 to 10 basis points since Tuesday, as continuing moderate demands for bills have run into a very thin immediate market supply. Dealers' total bill holdings on May 21 amounted to only $1.1 billion. Included in the total were net short positions of more than $100 million
in the under 3-month maturity area, and around $675 million of bills not immediately available for trading, and secured by long-term repurchase agreements.
Bill yields have also been affected recently by the
Treasury's announcement that in next week's monthly bill auction it will redeem the $200 million added to the maturing issue by the February bill-strip auction. While yields on intermediate-term Treasury coupon issues have also edged a little lower recently, due largely to official account buying, yields on long-term bonds have advanced another 5 basis points. The latter increase has reflected selling by investors seeking to obtain funds for payment of subscriptions to recently offered corporate
bonds.
Rates on certain short-term debt instruments other than U.S.
Government securities have also advanced since publication of the
Greenbook.
For example, yields on short-term Federal Agency debt have
risen another 5 to 10 basis points; commercial paper rates are up 1/8 of a percentage point; and the weekly 1-year prime municipal series has advanced 15 basis points.
KEY INTEREST RATES '1969 April 30
Lows
Highs
5.95 (1/1)
8.91 (5/21)
7.79
8.91 (5/21)
6.25 (1/7) 7.50 (5/22) 9.55 (5/22)
6.02 7.50 9.55 6.85 6.88
May 22
Short-Term Rates Federal funds (weekly average) 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
(3124) (2/17) (1/2) (3/26) (2/6)
6.85 (5/22) 6.88 (5/22)
5.87 7.00 8.51 6.51 6.75
6.00 6.45 (2/13)
6.00 7.40 (5/22)
6.00 7.00
6.00 7.40
6.42 7.62 7.38 6.77
(1/7) (5/22) (5/22) (5/22)
5.96 7.12 7.13 6.51
6.09 7.62 7.38 6.77
6.25 6.50 (1/30)
6.25 7.50 (5/22)
6.25 7.10
6.25 7.50
5.86 (1/16) 3.90 (1/2)
6.39 (2/27) 4.55 (3/20)
5.93 4.05
6.03 4.40
6.11 (1/20) 5.91 (4/14)
6.56 (5/22) 6.32 (3/18)
6.37 5.98
6.56 6.18
6.56 (1/2) 7.26 (2/3)
7.00 (3/28) 7.64 (3/28
6.81 7.50
6.78 7.55
7.05 (1/9) 6.90 (2/20)
7.45 (4/9) 7.57 (3/21)
7.18
7.28
4.82 (1/23) 4.57 (1/2)
5.46 (5/22) 5.30 (5/22)
5.10 4.95
5.46 5.30
7.66 (1/9)
8.17 (3/3)
7.92
7.88
5.91 6.38 7.14 6.08 6.25
6.04 6.50 6.25 6.32
(3/25) (2/17) (1/7) (1/16)
CD's (prime NYC) Highest quoted new issue Secondary market 1-year Treasury bills (bid) Prime municipals 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 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.
International Developments On page II - 5 of the May 21 Greenbook it was incorrectly stated that the downward revision in the estimated net export balance for the third and fourth quarters largely reflects "growing pessimism on the outlook for exports."
Actually, the principal reason for the
revision is a substantial increase in the estimate for U.S. merchandise imports, as briefly noted at page IV - 4.
Also, the projection of
imports of services includes substantially larger interest payments than earlier calculations allowed for. The new import estimate reflects the use of estimating techniques that place somewhat greater weight than before on the effects of the continuing rise in U.S. prices and less on the moderation in the pace of real growth after 1968.
Merchandise imports in the second half
are now projected at an annual rate of $37.3 billion, up 9 per cent from the second half of 1968.
A month ago this import increase was
projected at only 6 per cent, and in the Staff Projection of February 25 (published in the March Bulletin) the implied rise in imports between second halves of 1968 and 1969 was only 3 per cent. With regard to merchandise exports, prospects for which were discussed at pages IV - 3 and 4, the latest revisions of earlier estimates are downward for commercial aircraft (untilBoeing 747's begin to be shipped next year), downward also for agricultural exports, but upward for nonagricultural exports other than aircraft and autos on account of "stronger demand pressures in Europe than earlier assumed"
(p. IV - 4).
The large revision in second quarter net exports of goods and services from the earlier projected $6 billion to $2.7 billion, annual rate, is due in minor part to upward revisions for imports of goods and services, but three-fourths of the revision comes from re-estimation of after-effects of the port strike on U.S. merchandise exports.
March
exports were somewhat larger than had been estimated, and on this account the amount of second quarter exports postponed from the first quarter is now guessed to be $200 million less than before.
More impor-
tant, it is now assumed that $200 million of agricultural exports and $200 million of nonagricultural exports were completely lost in the first quarter, and would therefore not help to swell second quarter exports.
No appreciable revision has been made in the estimate of the
underlying trend of exports adjusted for effects of the port strike.
Corrections Page II - 5.
End of line 9 and line 10 should read "mainly
reflecting a significantly larger volume of imports than had been projected earlier." Page II - 32, second paragraph, line 3, "in 1968" should be transferred to end of sentence.
Page IV - 12, the missing page reference is to pages IV - 7 to 10.
SUPPLEMENTAL APPENDIX A:
SURVEY OF BANK LENDING PRACTICES.
MAY 1969
Respondents in the May 15 Bank Lending Practices Survey generally indicated--as they did in the previous survey--that they were continuing to experience and to expect stronger loan demand and that they had tightened lending terms and conditions further. Nearly two-thirds of the banks stated that demand for business loans had strengthened in the preceding three months, and almost one-half reported that they expected business loan demand to strengthen further in the next three months. (Table 1). Virtually none of the respondents thought that business loan demand had weakened over the previous three months, or that it would weaken in the coming three months. Most banks firmed substantially further their terms and conditions on loans to nonfinancial businesses. Over 90 per cent of the respondents indicated that they had raised interest rates on loans to such businesses--probably reflecting the March increase in the prime rate-while more than 75 per cent stiffened policies with regard to compensating Moreover, about 70 to 80 per cent of the banks balance requirements. followed more restrictive policies when reviewing credit lines or loan applications to new or nonlocal service area customers and almost 50 per cent had firmed these policies with regard to established or local service area customers. And around 70 per cent of the respondents reported that factors such as the value of the borrowe as a depositor, the source of collateral, and the intended use of the loan were scrutinized more closely in business loan applications, while about 40 per cent firmed policies in connection with standards of credit worthiness and the maturity of term loans. Lending terms and conditions to "noncaptive finance companies" were also tightened significantly further. About 65 per cent of the banks stated that they were less willing to establish new or larger credit lines to these borrowers and more than 50 per cent had raised interest rates on finance company loans. while less than 30 per cent had tightened compensating balance requirements, almost 45 per cent of the banks had adopted more strict enforcement of these requirements. Moreover, bank willingness to make certain other types of loans was also reduced further in the past three months. Banks were particularly more reluctant to grant term loans, with nearly two-thirds of the respondents reporting this policy position. Mortgage loans also came under increasing pressure with about 45 per cent of the banks indicating that they were less willing to make single family mortgage loans, while around 60 per cent were less willing toaccommodate demand for other types of mortgage loans. Approximately 40 per cent of the respondents were less willing to grant loans to brokers and participation loans to correspondent banks. However, less than 20 per cent of the banks indicated greater reluctance to grant loans in the relatively profitable consumer instalment area.
SA-2 There was no significant size of bank variation in the responses to the current survey, with about the same percentage of larger banks (deposits $1 billion or more) and smaller banks (deposits of less than $1 billion) indicating strength in current and anticipated business loan demand and firming in lending terms and conditions (Table 2). This is in contrast with the February survey in which a greater percentage of larger than smaller banks reported strength in current and expected loan demand as well as firming of lending terms and conditions. Banks that firmed lending policies in the current survey usually gave reduced availability and increased cost of funds and strong loan demands as the major reasons for more restrictive lending terms and conditions. A few mentioned that their loan/deposit ratios were higher than anticipated, and one bank stated that this ratio was as high as in late 1966. Another bank also cited the limited availability of funds in the Euro-dollar market as a reason for their stiffer lending policies.
NlT FOR QUOTATInN OR
PUBLIrATION
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 MAY 15, 1969 COMPARED TO THREE MONTHS EARLIER) (NUMBER OF BANKS & PERCENT OF TOTAL BANKS REPORTING) MUCH STRONGER
TOTAL BANKS
PCT
RANKS
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
123
100.0
18
14.6
60
48.8
41
33.3
ANTICIPATED DEMAND IN NEXT 3 MONTHS
122
100.0
10
8.2
47
38.5
59
48.4
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
LENDING TO .NONFINANCIAL BUSINESSES TERMS AND CONDITIONS: INTEREST RATES CHARGED
100.0
38.2
52.8
9.0
0.0
COMPFNSATING OR SUPPORTING BALANCES
100.0
27.6
48.0
24.4
0.0
STANDARDS OF CREDIT WORTHINESS
100.0
13.8
27.6
58.6
0.0
MATURITY OF TERM LOANS
100.0
17.1
25.2
57.7
0.0
REVIEWING CREDIT LINES OR LOAN APPLICATIONS ESTABLISHED CUSTOMERS
123
100.0
4.9
42.3
52.8
0.0
0.0
NEW CUSTOMFRS
121
100.0
43.0
37.2
19.8
0.0
0.0
LOCAL
122
100.0
5.7
41.0
53.3
0.0
0.0
122
100.0
29.5
28.7
0.0
0.0
SERVICF AREA CUSTOMERS
NONLOCAL
SERVICE AREA CUSTOMERS
1/ SURVEY OF LFNDING PRACTICES AS nF MAY 15, 1969.
AT 124 LARGE
41.8
BANKS REPORTING IN THE
FEDERAL RESERVE QUARTERLY INTEREST RATE
SURVEY
*"T rOR
;IJlTATION OR PUBLICATION
TABLE 1
ANSWERING QUESTION BANKS
PCT
MUCH FIRMER POLICY BANKS
PAGE 02
(CONTINUED)
PCT
MODERATELY FIRMER POLICY
ESSENTIALLY UNCHANGED POLICY
MODERATELY EASIER POLICY
BANKS
BANKS
BANKS
PCT
PCT
PCT
MUCH EASIEA POLICY BANKS
PCT
FACTORS RELATING TO APPLICANT 2/ VALUE AS DEPOSITOR OR SOURCE OF COLLATERAL BUSINESS
122
100.0
32.0
43
35.2
40
32.8
0.0
123
100.0
35.8
44
35.8
35
28.4
0.0
100.0
16.4
34.4
49.2
0.0
0.0
BALANCES
100.0
10.7
17.2
72.1
0.0
0.0
ENFORCEMENT OF BALANCE REQUIREMENTS
100.0
17.2
25.4
57.4
0.0
0.0
100.0
44.3
18.9
36.0
0.8
0.0
INTENDED
LENDING
USE
OF THE
LOAN
TO "NONCAPTIVE"
FINANCE
COMPANIES
TERMS AND CONDITIONS: INTEREST RATES CHARGED COMPENSATING
ESTABLISHING
OR SUPPORTING
NEW OR LARGER
CREDIT LINES
ANSWERING QUESTION BANKS
PCT
CONSIDERABLY LESS WILLING BANKS
PCT
MODERATELY LESS WILLING
ESSENTIALLY UNCHANGED
MODERATELY MORE WILLING
BANKS
BANKS
BANKS
PCT
PCT
PCT
WILLINGNESS TO MAKF OTHER TYPFS OF LOANS 123
100.0
28
22.8
51
41.5
44
35.7
0.0
122
100.0
2
1.6
21
17.2
97
79.6
1.6
121
100.0
20
16.5
36
29.8
64
52.9
0.8
120
100.0
25
20.8
44
36.7
51
42.5
0.0
MORTGAGE LOANS
121
100.0
27
22.3
48
39.7
46
38.0
0.0
PARTICIPATION LOANS WITH CORRESPONDENT BANKS
122
100.0
9.0
36
29.5
75
61.5
0
0.0
120
100.0
13.3
32
26.7
72
60.0
0
0.0
TFRM LOANS
TO BUSINESSES
CONSUMER INSTALMENT LOANS SINGLE FAMILY
MORTGAGE LOANS
MULTI-FAMILY MORTGAGF LOANS ALL OTHFR
LOANS
TO BROKERS
2/ FOR THESE FAC IRS, FIRMER MEANS THE FACTORS WERE CONSIDERED MORE IMPORTANT IN MAKING CREDIT REQUESTS, AND EASIFR MEANS THEY WERE LESS IMPORTANT.
DECISIONS FOR APPROVING
CONSIDERABLY MORE WILLING BANKS
PCT
NOT
FOR QUOTATION OR PUBLIraTION COMPARISON
TABLE 2
PAGE 03
OF QUARTERLY CHANGES IN BANK LENDING PRACTICES AT BANKS GROUPED BY SIZE OF TOTAL DEPOSITS 1/ (STATUS OF POLICY ON MAY 15, 1969. COMPARED TO THREE MONTHS EARLIER) (NUMBER IN BANKS IN EACH COLUMN AS PER CENT OF TOTAL BANKS ANSWERING QUESTION)
SIZE
TOTAL $1 & OVER
UNDER $1
OF BANK
MUCH STRONGER $1 & OVER
UNDER $1
--
TOTAL DEPOSITS
MODERATELY STRONGER $1 & OVER
UNDER $1
IN BILLIONS
ESSENTIALLY UNCHANGED
MODERATELY WEAKER
$1 & OVER
$1 E OVER
UNDER $1
UNDER $1
MUCH WEAKER $1 E OVER
UNDER L$
STRFNGTH OF DEMAND FOR CCMMFRCIAL AND INDUSTRIAL LOANS (AFTER ALLOWANCF FOR BANK'S USUAL SEASONAL VARIATION) COMPARED TO THRFF MONTHS AGO
100
100
4
3
ANTICIPATED DEMAND
100
100
4
5
IN NFXT
3 MONTHS
TOTAL
$1 & OVER LENDING TO NONFINANCIAL
UNDER $1
MUCH FIRMER
$1 & OVER
UNDER $1
MODERATELY FIRMER
ESSENTIALLY UNCHANGED
MODERATELY WEAKER
$1 & OVER
$1 C OVER
$1 & OVER
UNDER $1
UNDER ' $1
UNDER $1
MUCH WEAKER
$1 & OVER
BUSINESSFS
TFRMS AND CONDITIONS: 100
100
COMPENSATING OR SUPPORTING BALANCES
100
100
STANDARDS nF CREDIT WORTHINFSS
100
100
100
100
ESTABLISHED CUSTOMERS
100
100
NEW CUSTOMERS
100
100
100
100
100
100
INTEREST RATES
MATURITY REVIEWING
LOCAL
CHARGED
OF TERM LOANS CREDIT LINES OR LOAN APPLICATIONS
SERVICF AREA CUSTOMERS
NONLOCAL
SERVICE ARFA
CUSTOMERS
46 LARGE BANKS (DEPOSITS OF $1 BILLION OR MORE) AND 1/ SURVEY rF LENDING PRACTICES AT $1 RILLION) REPORTING IN THE FFOERAL RESFRVE QUARTFRLY INTEREST RATE SURVEY AS OF
29
28
78 SMALL BANKS (IDEPOSITS OF LESS THAN MAY 15, 1969.
UNDER $1
,1T
crq
3TV~TTIT
'IN
R PtLILI C TIn
TABLF
2
(CONTINUFD)
SIZE NUMBER ANSWERING QUESTION $1 & OVER FACTORS
UNDER $1
OF BANK MUCH FIRMER POLICY
$1 & OVER
UNDER $I
PAGE 04
-TOTAL DEPOSITS IN BILLIONS MODERATELY ESSENTIALLY MODERATELY FIRMER UNCHANGED EASIER POLICY POLICY POLICY $1 & OVFR
UNDER $I
$1 C OVER
UNDER $1
$1 E OVER
UNDER $1
RELATING TO APPLICANT 2/
VALUF AS DEPOSITOR OR SOURCE OF COLLATERAL BUSINFSS
1100
100
33
36
31
34
0
0
INTENDED USF OF THE LOAN
100
100
33
38
30
27
0
0
LENDING TERMS
TO "NONCAPTIVE"
FINANCE
MUCH EASIER POLICY $1 & OVER
UNDER $1
COMPANIES
AND CONDITIONS:
INTEREST RATFS CHARGED COMPENSATING OR SUPPORTING BALANCES ENFORCEMENT FSTABLISHING
OF BALANCE
REQUIREMENTS
NEW OR LARGER CREDIT
LINES
NUMBER ANSWERING QUESTION $1 & OVFR
WILLINGNESS
TO MAKE
OTHER TYPES
UNDER $1
CONSIDERABLY LESS WILLING $1 E OVER
UNDER $1
MODERATELY LESS WILLING
ESSENTIALLY UNCHANGED
$1 G OVER
$1 & OVER
UNDER $1
UNDER $1
MODERATELY MORE WILLING $1 & OVER
UNDER $1
OF LOANS
TERM LOANS TO BUSINFSSES CONSUMER INSTALMENT LOANS SINGLE
FAMILY MORTGAGE LOANS
MULTI-FAMILY MORTGAGE LOANS ALL OTHER MORTGAGE LOANS PARTICIPATION LOANS WITH CORRESPONDENT BANKS LOANS
'/
TO
ROKERS
100
100
100
100
FOR THESF FACTORS, FIRMER MEANS THE FACTORS AND EASIER MEANS THEY WERE CREDIT REQUEST,
WERE CONSIDERED MORE LESS IMPORTANT.
IMPORTANT
IN MAKING DECISIONS FOR APPROVING
CONSIDERABLY MORE WILLING $1 & OVER
UNDER $1
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
May 1967
Aug. 1967
Nov. 1967
Feb. 1968
May 1968
Aug. 1968
12.0 44.4
20.2 63.2
18.8 71.2
-8.0 50.0
64.8 66.4
-2.4
69.8
21.6 20.8
30.4 25.0 8.9 12.1
34.4 16.1 7.3 1.6
93.6
-0.8 10.5 2.5 11.6
28.0 64.8 30.0 56.9
-5.6 -5.6 -5.6
-
Nov. 1968
Feb. 1969
May 1969
25.6
54.4
60.0
20.8
49.2
41.8
91.0 75.6 41.4 42.3
LENDING TO NONFINANCIAL BUSINESSES -2
Terms and Conditions Interest rates charged
1.5 9.5 3.1
Compensating or supporting balances
Standards of credit worthiness Maturity of term loans
12.0
5.6
-27.2
56.8
10.4
32.8 32.8
4.8 1.6
86.2 64.3 32.8 30.3
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
16.0 6.4
58.6 54.5
67.2 71.6
-26.4 2.4 3.2 4.8
53.3
50.8 27.9 42.6 62.4
- 0.8 -15.3 - 3.3 4.1 1.7
48.8
Reviewing Credit Lines Established customers New customers Local service area customers Non-local service area customers
14.2
1.6
23.1
16.8
12.1 4.0
0.8 16.1
6.4 21.6 6.5 18.9
6.3 -13.4
25.6 10.4
20.0 14.4
19.2 12.0
54.4 44.4
12.8 8.1
-14.2 2.4 4.8 - 5.6
6.4 9.6 14.4 13.7
10.4 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
-21.5 -31.2 -53.2 -17.0 -28.3
6.4 -16.1 - 8.2 9.0 9.8
11.2 -16.1 4.1 14.0
- 4.0 -22.6 - 4.9 7.4
49.6 -0.8 32.0 36.4 43.4
-24.2 -13.8
- 6.4 1.6
- 4.8
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
11.2
15.3
22.9 29.5 54.9
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
14.0
3.2
8.8 1.6
16.0 23.4
4.8 -11.3 -14.1
8.2 3.4 1.6 6.5
-1.6
42.5
64.3 17.2 45.5 57.5 62.0
18.7 34.2
38.4 40.0
4.2 30.8 40.1
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.
Cite this document
Federal Reserve (1969, May 26). Greenbook/Tealbook. Greenbooks, Federal Reserve. https://whenthefedspeaks.com/doc/greenbook_19690527_part3
@misc{wtfs_greenbook_19690527_part3,
author = {Federal Reserve},
title = {Greenbook/Tealbook},
year = {1969},
month = {May},
howpublished = {Greenbooks, Federal Reserve},
url = {https://whenthefedspeaks.com/doc/greenbook_19690527_part3},
note = {Retrieved via When the Fed Speaks corpus}
}