May 20, 2002 News Archive

Board Releases April 2002 Senior Loan Officer Survey on Bank Lending Practices
The Board released the most recent survey on bank lending practices. The survey focused on changes in the supply of and demand for bank loans to businesses and households over the past three months. The survey also addressed changes in banks' lending policies with regard to commercial paper backup lines of credit over the past twelve months, and the effect of problems in the market for terrorism insurance on commercial real estate lending. Banks continued to report a weakening of demand for C&I and commercial real estate loans but at a lesser rate than in the previous survey. For the second consecutive survey, banks reported tightening terms on non-credit card loans to a greater extent than they have terms on credit card loans. Demand for consumer loans was roughly unchanged over the past three months.

Vice Chairman Ferguson Remarks on the Implications of 9/11 for the Financial Services Sector
In a speech delivered at the Conference on Bank Structure and Competition held at the Federal Reserve Bank of Chicago, Fed Vice Chairman Roger W. Ferguson, Jr., remarked on the preparedness of the financial services sector and the lessons learned from the events of 9/11. He discussed the interdependence of market participants and the coordination efforts of various business-resumption work groups. He also said that supervisory plans for the rest of the year and for 2003 are being revised to emphasize business resumption, particularly for large banking organizations.

Farm Bill Approved by Senate and Signed into Law by President
The Farm Security and Rural Investment Act of 2002 was signed into law by President Bush on May 13, 2002. The farm bill restores the farm safety net, which protects farm income when prices fall below targeted levels. The bill would also increase conservation funding by 80% as well as strengthen job creation and rural economic development by providing an additional $1 billion for equity capital programs. Furthermore, the bill would promote bio-energy production, and purchases of bio-based products by federal agencies.

Federal Reserve and SEC Publish Paper on Structural Change in Settlement of Government Securities
In a joint press release, the Board announced the publication of a white paper on potential structural changes in the settlement of government securities and requested public comment on it by August 12, 2002. The white paper was developed as a means of identifying issues and questions that need to be further explored in light of the vulnerabilities identified following the events of 9/11.