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Bank Lending: US: Difference between revisions
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=== March 2023 === | === March 2023 === | ||
US bank lending contracted by the most on record in the last two weeks of March, indicating a tightening of credit conditions in the wake of several high-profile bank collapses that risks damaging the economy. | US bank lending contracted by the most on record in the last two weeks of March, indicating a tightening of credit conditions in the wake of several high-profile bank collapses that risks damaging the economy. commercial bank lending dropped nearly $105 billion in the two weeks ended March 29, the most in Federal Reserve data back to 1973. The more than $45 billion decrease in the latest week was primarily due to a a drop in loans by small banks. | ||
The Fed’s report showed that by bank size, lending decreased $23.5 billion at the 25 largest domestically chartered banks in the latest two weeks, and plunged $73.6 billion at smaller commercial banks over the same period. Lending by foreign institutions in the US fell $7.5 billion.<ref>https://www.bloomberg.com/news/articles/2023-04-07/us-bank-lending-declines-sharply-for-a-second-straight-week?sref=ZVajCYcV</ref> | The Fed’s report showed that by bank size, lending decreased $23.5 billion at the 25 largest domestically chartered banks in the latest two weeks, and plunged $73.6 billion at smaller commercial banks over the same period. Lending by foreign institutions in the US fell $7.5 billion.<ref>https://www.bloomberg.com/news/articles/2023-04-07/us-bank-lending-declines-sharply-for-a-second-straight-week?sref=ZVajCYcV</ref> | ||
Fed said domestically chartered banks made divestments to nonbank institutions that affected $60 billion in loans in the week ended March 22, meaning those loans are no longer held by commercial lenders. | |||
== References == | == References == | ||