{"id":3059,"date":"2010-09-08T09:55:20","date_gmt":"2010-09-08T09:55:20","guid":{"rendered":"https:\/\/mmm.9dotdigital.ca\/?p=3059"},"modified":"2025-03-27T15:49:06","modified_gmt":"2025-03-27T15:49:06","slug":"is-us-bank-lending-starting-to-recover","status":"publish","type":"post","link":"https:\/\/mmm.9dotdigital.ca\/?p=3059","title":{"rendered":"Is US bank lending starting to recover?"},"content":{"rendered":"

The stock of commercial and industrial (C&I) loans advanced by US commercial banks shrank by 18% in the year to July. The pace of decline, however, has slowed sharply, with August figures due on Friday likely to show a three-month change of close to zero – see first chart. (The chart uses a new Federal Reserve dataset that adjusts for series breaks.)<\/p>\n

In the Fed’s July survey<\/a> of senior bank loan officers, the net percentages reporting stronger demand for C&I loans from larger and small firms rose to +2% and -4% respectively. An average of the two series has been a leading indicator of C&I lending and the current reading is consistent with a return to expansion – second chart.<\/p>\n

C&I lending accounts for only 18% of US banks’ total “loans and leases” but they usually move together, with total lending also declining more slowly recently – third chart. The Fed survey also reported notable improvements in loan officers’ assessment of demand for mortgages and consumer credit. The officials, meanwhile, signalled looser lending standards for C&I loans and prime residential mortgages and increased willingness to advance consumer installment credit – fourth chart.<\/p>\n

A return to credit expansion, if confirmed, would increase confidence in the sustainability of the recovery, in part because of its likely positive impact on monetary trends.<\/p>\n

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The stock of commercial and industrial (C&I) loans advanced by US commercial banks shrank by 18% in the year to July. The pace of decline, however, has slowed sharply, with August figures due on Friday likely to show a three-month change of close to zero – see first chart. (The chart uses a new Federal […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-3059","post","type-post","status-publish","format-standard","hentry","category-money-moves-markets"],"_links":{"self":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts\/3059","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3059"}],"version-history":[{"count":1,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts\/3059\/revisions"}],"predecessor-version":[{"id":5368,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts\/3059\/revisions\/5368"}],"wp:attachment":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3059"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3059"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3059"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}