Vande Geest accepted a tenure-track assistant professorship at UA, where he started the STBL
. Since then he has secured more than $4 million in research funding from the American Health Assistance Foundation, the American Heart Association, the National Science Foundation (CAREER Award), and the National Institutes of Health.
C&I loans in the STBL
are split into four different risk categories and five repricing categories, which means we have i=1, ..., 20 C&I loan types.
The one exception is C&I loans where we use data from the STBL
, which provides data on the interest rate charged on new C&I loans originated by commercial banks in the survey week.
In order to assess the performance following enactment of the 1999 STBL
, the survey sought information from the pre-STBL period (1997-1998) and the post-STBL period (1999-2000).
The first source is the Federal Reserve's Survey of Terms of Bank Lending (STBL
), which contains details on the contract terms of all new domestic commercial and industrial (C&I) loans issued by surveyed banks during one or more days of the first week of the second month of each quarter.
Evidence from other data sources corroborated these qualitative responses from the BLPS: The spreads on loans in the riskier categories in the STBL
increased steadily during 2001 and the first half of 2002, and they increased to a much greater extent than did the spreads on loans rated as having "low" or "minimal" risk (chart 22).
(2.) Because the STBL
uses a stratified sample of the banking universe, the large bank category in the survey is not the same as the 100 largest banks.
(2.) Loans in the STBL
receive risk ratings ranging from 1 to 5, which correspond, respectively, to minimal risk, low risk, moderate risk, acceptable risk, and classified.
Credit flow patterns from the STBL
also suggested tighter financial conditions for business borrowers, particularly for higher-risk loans not made under commitment; such loans fell significantly in 2000, bottoming out at about 6 percent as a share of total C&I loan originations reported in the STBL
(chart 7).(3) By contrast, a marked rise late in the year in the share of lower-risk loans made under previous commitments suggested that domestic commercial banks continued to extend credit to their better-rated customers.
data also corroborate evidence from the BLPS that banks charged higher spreads on business loans in general and on riskier loans in particular.
Indeed, according to the STBL
, spreads on C&I loans not made under commitment widened much more sharply in late 1998 than did those on other loans, indicating that businesses would have been subject to considerably more financial strain in the absence of such commitments (chart 8, lower panels).
Since its inception in 1977, the Survey of Terms of Business Lending (STBL
) has provided unique information concerning the terms (both price and nonprice) of commercial and industrial loans made to U.S.