Credit contracts and loans at US banks fell last week: Fed statistics
Bank
credit at U.S. commercial banks fell in the most recent week as
commercial banks reduced lending to companies, according to Federal
Reserve statistics released on Friday.
Overall bank credit
declined to $17.23 trillion in the week ending Aug. 9, down from $17.25
trillion the previous week and $17.32 trillion a year ago, marking the
second consecutive year-over-year decline.
Loans
and leases declined to $12.13 trillion from $12.15 trillion the
previous week; commercial and industrial loans fell to $2.74 trillion
from $2.75 trillion the previous week. Commercial and industrial
(C&I) loan growth dropped substantially from a year ago to less than
1%.
Borrower demand has slowed as a result of the Fed's quick
interest-rate rises, as well as stricter credit rules and the
repercussions from this year's regional bank failures in the United
States.
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