The numbers: Commercial and industrial loans — a key financial driver — rebounded by a seasonally adjusted $6.9 billion to $2.76 trillion within the week ending Aug. 30, the Federal Reserve stated Friday.
Lending has been dropping for 4 straight months via July following the collapse of Silicon Valley Bank.
Key particulars: Lending by massive banks rose by $5.2 billion to $1.55 trillion.
Lending by small banks slipped $500 million to $717.9 billion within the newest week.
Total financial institution deposits fell by $70.2 billion to $17.3 trillion in the identical week. Deposits peaked at $18.2 billion in mid-April 2022, simply after the Fed started elevating its benchmark rate of interest.
Big image: Banks have been tightening lending requirements and slicing again on lending to shore up their monetary well being. This has been tightening monetary situations. The financial system appears to be rising regardless of these headwinds, however some economists suppose the tightening will get extra extreme because the 12 months progresses.
Market response: U.S. shares completed greater Friday after a quiet week throughout which the Dow Jones Industrial Average
DJIA
misplaced 1%. The 10-year Treasury yield
BX:TMUBMUSD10Y
rose by 8.4 foundation factors this week.
Source web site: www.marketwatch.com
