Led by foreign banks, lenders increased rates charged for commercial credit in August compared with May, according to the Federal Reserve Board.
A survey of 348 domestic banks and the U.S. branches of 50 foreign banks found that the average rate charged for commercial credit rose to 7.14% in August from 6.8% in May.
Rates on minimal-risk loans rose 19 basis points, to 6.32%; the price of low-risk credit rose 45 basis points, to 6.71%; and moderate-risk loans rose 17 basis points, to 7.03%. Rates on other loans, which included classified credits, increased 51 basis points, to 7.59%.
Foreign lenders charged, on average, 6.96% for commercial credit in August, a 62 basis-point increase from May. Large U.S. banks charged 7.07% in August, up 3 basis points from May. Small U.S. banks charged 8.33% last month, virtually unchanged from three months earlier. The survey was released Friday.