Aug 18 (Reuters) – Bank credit at U.S. commercial banks has tightened in the past week as lenders pulled loans to businesses, data released by the Federal Reserve showed on Friday.
Global bank credit fell to $17.23 trillion in the week ending August 9, down from $17.25 trillion the previous week and $17.32 trillion a year earlier, its second consecutive year-over-year decline.
Loans and leases fell to $12.13 trillion, from $12.15 trillion the week before; commercial and industrial loans fell to $2.74 trillion, from $2.75 trillion for the week ending August 2.
From the prior year, commercial and industrial (C&I) loan growth slowed sharply to less than 1%.
These trends reflect lower borrower demand in the face of rapid interest rate hikes by the Federal Reserve, as well as tightening credit standards and the aftermath of US regional bank failures this year.
(Reporting by Ann Saphir; editing in Spanish by Carlos Serrano)
2023-08-18 21:48:07
#Bank #credit #contracted #loans #fell #week #Fed #data
