Receipts and payments of income on claims and liabilities reported by U.S. banks were revised to reflect the greater emphasis U.S. banks placed on market-determined rates as the basis for pricing business loans and the reduced emphasis placed on prime-based pricing. Banks frequently obtained loans at the London interbank offered rate rather than the prime rate, and linked the pricing of overdrafts and intra- and interbank lending more closely to the cost of funds (often the Federal funds rate) plus a small charge for administrative costs. The previous estimation method relied heavily on the U.S. prime rate. In addition, some noninterest income was estimated independently rather than included implicitly in yields on assets. Estimates were revised for 1978-1981.
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