— (Reuters)According to data released by the Federal Reserve on Friday, bank credit at U.S. commercial banks decreased in the most recent week as commercial banks reduced their lending to businesses.
The total amount of bank credit decreased for the second consecutive year, from $17.32 trillion the previous year to $17.23 trillion in the week ending August 9.
Loans and leases decreased to $12.13 trillion from $12.15 trillion the previous week. Commercial and industrial loans also decreased, falling to $2.74 trillion from $2.75 trillion in the week ending August 2. Commercial and industrial (C&I) loan growth decreased to less than 1% from a year earlier.
The developments are due to tightened credit criteria, decreased borrower demand in the midst of the Fed’s quick interest rate hikes, and the effects of this year’s regional bank failures in the United States.
(Ann Saphir reported; Jonathan Oatis and Josie Kao edited.)