Consumer and Business Loans and Debt

Lending to businesses and individuals by FDIC-insured banks rose 1.2 percent from $7.4 trillion in 2010 to $7.5 trillion in 2011, reflecting a 13.6 percent increase in commercial and industrial loans from 2010 and a 13.9 percent increase in other loans and leases, while real estate loans fell 3.3 percent and loans to individuals dropped 0.8 percent.

 

PERSONAL AND BUSINESS LENDING BY FDIC-INSURED BANKS, 2009-2011

($ millions, end of year)

  2009 2010 2011
Number of institutions reporting 8,012 7,658 7,357
Loans and leases, gross (1) $7,285,671 $7,377,870 $7,467,424
All real estate loans 4,461,798 4,267,026 4,127,600
     Real estate loans in domestic offices 4,398,816 4,209,847 4,067,729
     Construction and land development  450,817 321,451 240,010
     Commercial real estate  1,091,290 1,071,184 1,059,232
     Commercial real estate owner-occupied  482,262 475,191 475,444
     Other non-farm non-residential  609,028 595,993 583,788
     Multifamily residential real estate  212,725 212,692 218,490
     1-4 family residential  2,577,390 2,536,543 2,481,342
     Farmland  66,594 67,978 68,655
     Real estate loans in foreign offices 62,982 57,179 59,871
Farm loans  59,575 59,328 61,337
Commercial and industrial loans  1,213,932 1,185,101 1,346,038
Loans to individuals  1,057,806 1,317,600 1,307,621
     Credit cards  421,479 702,060 687,753
     Other revolving credit plans  61,549 58,153 57,637
     Automobile loans NA NA 299,860
     Other loans to individuals 574,779 557,387 262,371
Total other loans and leases (2) 492,561 548,815 624,829

(1) Includes loan loss allowance and unearned income.
(2) Other loans and leases category items may not total for savings institutions regulated by the Office of Thrift Supervision due to reporting differences.

NA=Data not available.

Source: Federal Deposit Insurance Corporation.

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TWELVE-MONTH LOAN GROWTH RATES AT FDIC-INSURED BANKS, 2002-2011

(Percent, end of year)

Source: Federal Deposit Insurance Corporation.

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CREDIT MARKET DEBT GROWTH BY SECTOR, 2007-2011 (1)

(Percent change from prior year)

  2007 2008 2009 2010 2011
Domestic nonfinancial sectors 8.4% 5.9% 3.1% 4.1% 3.6%
     Households          
          Home mortgage 6.8 -0.5 -1.4 -2.9 -2.3
          Consumer credit 5.9 0.8 -4.5 -1.3 4.0
               Total household 6.6% -0.1% -1.7% -2.2% -1.5%
     Business          
          Corporate 13.4 4.9 -1.7 3.9 6.6
               Total business 13.6% 6.1% -2.3% 0.8% 4.5%
     Government          
          State and local govt 5.4 0.7 3.9 2.2 -1.9
          Federal govt 4.9 24.2 22.7 20.2 11.4
Domestic financial sectors 12.7% 5.5% -10.6% -6.0% -3.2%
Foreign 9.0% -10.6% 12.4% 4.2% -0.8%

(1) Percent change using seasonally adjusted data from prior year on an end-of-year basis.

Source: Board of Governors of the Federal Reserve System, June 7, 2012.

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CREDIT MARKET DEBT GROWTH BY SELECTED SECTOR, 2002-2011 (1)

(Percent change from prior year)

(1) Percent change using seasonally adjusted data from prior year on an end-of-year basis.

Source: Board of Governors of the Federal Reserve System, June 7, 2012.

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CREDIT MARKET DEBT OUTSTANDING, OWED BY HOUSEHOLDS AND BUSINESSES, 2002-2011 (1)

($ billions, end of year)

Year Household sector Nonfinancial
corporate business
2002 $8,439.1 $5,037.5
2003 9,462.9 5,139.0
2004 10,531.5 5,376.7
2005 11,701.4 5,741.8
2006 12,834.6 6,258.8
2007 13,680.9 7,101.9
2008 13,665.5 7,445.2
2009 13,394.5 7,231.8
2010 13,115.6 7,533.3
2011 12,930.0 8,031.6

(1) Selected domestic nonfinancial sectors. Excludes corporate equities and mutual fund shares.

Source: Board of Governors of the Federal Reserve System, June 7, 2012.

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CREDIT AND DEBIT CARD PAYMENTS

There were 108.9 billion noncash payments with a value of $72.3 trillion in the U.S. in 2009, including those made by check, card or Automated Clearing House (ACH), according to the latest payments study by the Federal Reserve. More than three-quarters of all U.S. noncash payments were made electronically in 2009, a 9.3 percent annual increase since the Fed’s last study in 2007. Debit cards were the most widely used noncash payment, based on number of payments (accounting for 35 percent of payments), followed by checks (22 percent), credit cards (20 percent), ACH (18 percent) and prepaid cards (5 percent). The ACH system, a national payments network that includes Social Security benefit payments, payroll direct deposits and ecommerce, among others, accounted for 51.4 percent of payments, based on value, followed by checks (43.7 percent), credit cards (2.7 percent), debit cards (2.0 percent) and prepaid cards (0.2 percent).

 

NUMBER AND VALUE OF NONCASH PAYMENTS, 2006 AND 2009

  Number (billions) Value ($ trillions)
  2006 2009 Compound annual
growth rate,
2006-2009
2006 2009 Compound annual
growth rate,
2006-2009
Checks (paid) 30.5 24.4 -7.2% $41.60 $31.59 -8.8%
ACH (1) 14.6 19.1 9.3 31.02 37.16 6.2
Credit card 21.7 21.6 -0.2 2.12 1.92 -3.2
Debit card 25.0 37.9 14.8 0.97 1.46 14.4
Prepaid card 3.3 6.0 21.5 0.08 0.14 22.4
Total  95.2 108.9 4.6 $75.79 $72.28 -1.6

(1) Automated Clearing House.

Source: Federal Reserve System.

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DISTRIBUTION OF THE NUMBER OF NONCASH PAYMENTS, 2006 AND 2009

(1) Automated Clearing House.

Source: Board of Governors of the Federal Reserve System.

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CONSUMER DEBT

 

DEBT HELD BY FAMILIES BY TYPE OF DEBT, 2001-2010

Percentage of families holding debt (1) Home-secured Other residential property Installment loans Credit card balances Other lines of credit Other Any debt
2001 44.6% 4.6% 45.2% 44.4% 1.5% 7.2% 75.1%
2004 47.9 4.0 46.0 46.2 1.6 7.6 76.4
2007 48.7 5.5 46.9 46.1 1.7 6.8 77.0
2010 47.0 5.3 46.3 39.4 2.1 6.4 74.9
By age of family head, 2010              
Under 35 34.0 2.9 61.9 38.7 1.8 5.5 77.8
35 to 44 57.6 5.1 60.0 45.6 2.2 8.6 86.0
45 to 54 60.4 7.6 49.8 46.2 2.7 9.7 84.1
55 to 64 53.6 7.6 40.7 41.3 3.0 6.7 77.7
65 to 74 40.5 5.0 30.4 31.9 1.2 2.3 65.2
75 and over 24.2 2.9 12.3 21.7 (2) 2.0 38.5
Percentiles of income, 2010 (3)              
Less than 20 14.8 1.3 34.1 23.2 1.2 4.2 52.5
20 to 39.9 29.6 1.7 40.8 33.4 2.2 4.2 66.8
40 to 59.9 51.6 3.5 49.9 45.0 2.1 6.8 81.8
60 to 79.9 65.4 6.0 56.6 53.1 1.9 7.8 86.9
80 to 89.9 74.5 9.1 58.8 51.0 2.0 11.8 88.9
90 to 100 72.8 19.4 41.8 33.6 3.7 6.6 84.5

(1) Families include one-person units.
(2) Ten or fewer observations.
(3) Ranges represent percentiles rather than income levels. A percentile is a statistical ranking point. The 50th percentile represents the midpoint of all values. For example, at the 50th percentile half of the families in the ranking fall above this income level and half fall below.

Note: Latest data available. Based on surveys conducted every three years.

Source: Survey of Consumer Finances, Board of Governors of the Federal Reserve System.

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DEBT HELD BY FAMILIES BY TYPE OF DEBT AND LENDING INSTITUTION, 2001-2010

Type of debt 2001 2004 2007 2010
     Total 100.0% 100.0% 100.0% 100.0%
Home-secured debt 75.2 75.2 74.7 74.1
Installment loans 12.3 11.0 10.2 11.1
Other residential property 6.2 8.5 10.1 9.8
Credit card balances 3.4 3.0 3.5 2.9
Other debt 2.3 1.6 1.1 1.1
Other lines of credit 0.5 0.7 0.4 1.0
Purpose of debt        
     Total 100.0% 100.0% 100.0% 100.0%
Home purchase 70.9 70.2 69.5 69.5
Other residential property 6.5 9.5 10.8 10.5
Goods and services 5.8 6.0 6.2 5.7
Education 3.1 3.0 3.6 5.2
Vehicles 7.8 6.7 5.5 4.7
Investment, excluding real estate 2.8 2.2 1.6 2.0
Home improvement 2.0 1.9 2.3 1.9
Other 1.1 0.6 0.5 0.4
Type of lending institution        
     Total 100.0% 100.0% 100.0% 100.0%
Commercial bank 34.1 35.1 37.3 45.1
Mortgage or real estate lender 38.0 39.4 41.6 26.9
Brokerage 3.1 2.5 1.6 6.9
Credit union 5.5 3.6 4.2 5.1
Thrift institution (1) 6.1 7.3 4.2 4.1
Finance or loan company 4.3 4.1 3.4 4.0
Credit and store cards 3.7 3.0 3.6 2.9
Other nonfinancial 1.4 2.0 2.0 2.4
Individual lender 2.0 1.7 1.4 1.0
Government 1.1 0.7 0.4 0.8
Other loans 0.5 0.2 0.2 0.5
Pension account 0.3 0.3 0.2 0.4

(1) Savings and loan association or savings bank.

Note: Latest data available. Based on surveys conducted every three years.

Source: Survey of Consumer Finances, Board of Governors of the Federal Reserve System.

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CONSUMER CREDIT FINANCE RATES BY INSTITUTION AND TYPE OF LOAN, 2002-2011

   2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Commercial banks                    
     New automobiles (48 months) 7.62% 6.93% 6.60% 7.07% 7.72% 7.77% 7.02% 6.72% 6.21% 5.73%
     Personal (24 months) 12.54 11.95 11.89 12.06 12.41 12.38 11.37 11.10 10.87 10.88
     Credit card plans 13.40 12.30 12.72 12.51 13.21 13.30 12.08 13.40 13.78 12.74
Finance companies                    
     New automobiles 4.29 3.81 4.92 6.02 4.99 4.87 5.52 3.82 4.26 4.73
     Used automobiles 10.74 9.86 8.81 8.81 9.61 9.24 NA NA NA NA

NA=Data not available.

Source: Board of Governors of the Federal Reserve System.

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DELINQUENCY RATES, RESIDENTIAL REAL ESTATE AND CONSUMER CREDIT CARD LOANS, 2002-2011 (1)

Year Residential
real estate (2)
Credit cards Year Residential
real estate (2)
Credit cards
2002 1.97% 4.97% 2007 3.08% 4.63%
2003 1.78 4.56 2008 6.65 5.66
2004 1.39 4.15 2009 10.48 6.34
2005 1.63 3.62 2010 10.14 4.15
2006 1.95 4.01 2011 9.91 3.27

(1) All figures are for the fourth quarter and are based on loans at domestic offices of commercial  banks, measured as a percentage of loans.
(2) Includes loans secured by 1 to 4 family properties, including home equity lines of credit.

Source: Board of Governors of the Federal Reserve System.

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  • Delinquency rates for residential real estate loans were 11.20 percent in second-quarter 2010, the highest since record-keeping began in 1991.
  • The residential delinquency rate rose from 9.91 percent in fourth-quarter 2011 to 10.18 percent in first-quarter 2012.

CREDIT CARDS

Bank cards, credit cards issued by banks, are the most widely held type of credit card, with 95.8 percent of cardholders having such cards in 2010. Balances on bank cards accounted for 85.1 percent of outstanding credit card balances in 2010, down from 87.1 percent in 2007, according to the Federal Reserve's latest Consumer Finance Survey. Store cards were also popular, with 55.8 percent of cardholders having such cards in 2010.

In February 2010 new federal rules for credit card companies went into effect. Along with other consumer protections, the rules require credit card companies to provide consumers with 45-day notice of any major changes to their card's interest rates, fees and other material terms.

 

FAMILIES WITH CREDIT CARDS, 2007 AND 2010

  2007 (1) 2010
All families    
Percent of all families with credit cards 72.9% 68.0%
Percent of all families with credit card balance 46.1 39.4
Median amount of credit card balance ($000) $3.1 $2.6
Families with credit card balance    
By percentile of income    
Less than 20 25.7% 23.2%
20 to 39.9 39.5 33.4
40 to 59.9 54.8 45.0
60 to 79.9 62.1 53.1
80 to 89.9 55.8 51.0
90 to 100 40.6 33.6
Median amount of credit card balance ($000)    
By percentile of income    
Less than 20 $1.0 $1.0
20 to 39.9 1.9 1.5
40 to 59.9 2.5 2.2
60 to 79.9 4.2 3.1
80 to 89.9 5.8 2.9
90 to 100 7.9 8.0

(1) All 2007 dollars adjusted to 2010 dollars.

Note: Latest data available. Based on surveys conducted every three years.

Source: Survey of Consumer Finances, Board of Governors of the Federal Reserve System.

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STUDENTS WITH CREDIT CARDS, BY RACE/ETHNICITY, FAMILY INCOME AND GRADE LEVEL, 2011

Source: Sallie Mae.

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TOP TEN DEPOSITORY INSTITUTIONS BY CREDIT CARD LOANS OUTSTANDING, 2010-2011 (1)

($000)

Rank Institution 2010 2011
1 Citigroup Inc. $166,566,000 $157,607,000
2 Bank of America Corporation 177,013,566 144,568,267
3 JPMorgan Chase & Co. 130,869,000 124,802,000
4 American Express Company 61,199,650 62,910,000
5 Capital One Financial Corporation 52,765,277 58,869,212
6 Discover Financial Services 46,231,088 47,773,150
7 HSBC North America Holdings Inc. 33,860,830 31,159,220
8 Wells Fargo & Company 29,449,000 30,914,000
9 U.S. Bancorp 20,280,000 20,710,000
10 Barclays Delaware Holdings LLC 10,234,851 12,038,710

(1) The total dollar amount outstanding of credit card loans and other revolving credit plans.

Source: SNL Financial LC.

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SMALL BUSINESS LENDING

Small businesses, independent businesses with fewer than 500 employees, are an important sector of the U.S. economy, employing about half of all private sector workers in the United States, according to the Small Business Administration. Small business lending rose from $686.8 billion in 2007 to $695.2 billion in 2009, based on data from FDIC-insured banks. However, small business lending fell by 6.8 percent to $607.7 billion in 2011, following a 6.2 percent drop in 2010. Loans fell further to $590.2 billion in the first quarter of 2012, a 3.4 percent drop when compared with first quarter 2011.

 

BUSINESS LENDING BY LOAN SIZE AND SIZE OF BANK, 2012 (1)

  Value of loans ($ millions) 
Size of loans ($000) Large banks (2) Small banks
$7.5 to $99 $2,315 $861
$100 to $999 8,705 1,809
$1,000 to $9,999 12,012 1,682
$10,000 and over 21,672 (3)

(1) Based on a sample of 348 domestically chartered commercial banks, May 7-11, 2012.
(2) As of March 31, 2012, assets of large banks were at least $4.4 billion.
(3) The number of loans was insufficient to provide a meaningful value.

Source: Board of Governors of the Federal Reserve System.

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LOANS TO SMALL BUSINESSES AT FDIC-INSURED INSTITUTIONS, 2005-2012

($ millions)

  2005 (1) 2007 (1) 2008 (1) 2009 (1) 2010 (1) 2011 (1) March 30, 2012
Loan balances              
Commercial and industrial
loans of $1 million or less
$286,358 $326,699 $336,404 $323,202 $309,949 $283,627 $279,253
Nonfarm nonresidential
loans of $1 million or less
315,121 360,061 375,048 372,026 342,219 324,037 310,924
Total small business loan balances $601,479 $686,760 $711,452 $695,228 $652,168 $607,664 $590,177
               
Percent change from year ago              
Commercial and industrial
loans of $1 million or less
3.7% 10.2% 3.0% -3.9% -4.1% -8.5% -1.6%
Nonfarm nonresidential
loans of $1 million or less
4.7 6.6 4.2 -0.8 -8.0 -5.3 -4.9
Total small business loan balances 4.2% 8.3% 3.6% -2.3% -6.2% -6.8% -3.4%
               
Numbers of loans              
Commercial and industrial
loans of $1 million or less
19,317,043 22,068,041 25,375,955 21,404,066 20,656,203 19,858,469 21,702,861
Nonfarm nonresidential
loans of $1 million or less
1,714,937 2,458,493 1,844,338 1,797,337 1,731,634 1,504,601 1,421,984
Total small business loans  21,031,980 24,526,534 27,220,293 23,201,403 22,387,837 21,363,070 23,124,845

(1) As of June 30.

Source: Federal Deposit Insurance Corporation.

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COMMUNITY DEVELOPMENT LENDING

The Federal Community Reinvestment Act (CRA) requires commercial banks and savings institutions with total assets of approximately $1.1 billion to report data regarding their small business, small farm and community development loans. The mandatory CRA reporting threshold adjusts annually based on changes to the Consumer Price Index and for 2011 was $1.122 billion. In addition, some smaller banks opt to report small business and farms loans under the CRA. For 2011 a total of 859 lenders reported data about originations and purchases of small business and small farm loans, 39 percent of which were below the threshold. Small business and small farm lending reported by the CRA data reporters represent a significant portion of total small business and small farm lending by all commercial banks and savings associations. In 2011 CRA reporters accounted for about 85 percent of small business loans outstanding and 24 percent of small farm loans outstanding, based on the number of loans extended by all banking institutions.

In 2011 approximately 5.2 million small business loans (totaling $197 billion) and about 137,000 small farm loans (totaling $ 11.8 billion) were originated or purchased by CRA reporting banks. The number of small business loans (originations and purchases combined) reported in 2011 increased about 21 percent from 2010 and the dollar amount of such lending increased about 10 percent. The number of small farm loans (originations and purchases combined) was down about 7 percent, and the dollar amount of such lending was virtually unchanged from 2010.

 

COMMUNITY DEVELOPMENT LENDING, 2011 (1)

  CRA loans CRA reporting institutions
  Number Amount ($000) Total Community
development loans
Asset size of
lender ($ millions)
Total Percent Total Percent Number Percent Number
extending
Percent
extending
Less than $100   0 (2) 0 (2) 1 0.1% 0 (2)
$100 to $249   15 0.1% $11,176 (2) 9 1.0 3 0.5%
$250 to $1,121   1,774 9.9 1,413,218 3.0% 300 34.9 193 29.5
$1,122 or more   16,206 90.1 45,568,734 97.0 549 63.9 459 70.1
Total 17,995 100.0% $46,993,128 100.0% 859 100.0% 655 100.0%

(1) As per the Community Reinvestment Act (CRA), enacted in 1977 to encourage banks to help meet the needs of the communities in which they operate, including low and moderate income neighborhoods. The act mandates that the reporting threshold adjusts annually to the Consumer Price Index, bringing the threshold to $1.122 billion in assets in 2011.
(2) Less than 0.1 percent.

Source: Federal Financial Institutions Examination Council.

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