American banks experienced a historic contraction in the final two weeks of March, greater than even during the 2008 financial crisis, in the clearest indication yet that credit conditions are tightening as a result of deteriorating economic conditions.
According to Federal Reserve data dating back to 1973, commercial bank lending saw a drop of nearly $105 billion in the two weeks ending March 29th. The final week saw a decrease of over $45 billion, which can be attributed primarily to a decline in small banks’ loan offerings.
This reduction in lending has particularly impacted real estate, commercial, and industrial loans. The most recent report published on Friday indicated that commercial bank deposits also experienced a decline of $64.7 billion in the past week, marking the tenth consecutive decrease primarily driven by a drop in large firms’ deposits.
This aggressive decline in lending appears to be related to the failure of various firms, […]
Read the Whole Article From the Source: redstate.com
