Bloomberg: US bank lending down by $105bn



04/10/2023 3:21 AM


Following closing of several of the country's largest lending institutions, bank lending in the US has decreased by $105 billion over the last two weeks, according to Bloomberg. The Federal Reserve reports that it is the greatest fall since 1973.



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Bloomberg reports that the decline over the past week was $45 billion. The agency claims that this is mostly because small banks have cut back on their lending.

SVB, the 16th-largest American bank, filed for bankruptcy on March 10. The bankruptcy of Signature Bank of New York followed. It was the third-largest bank in US history to file for bankruptcy. Concerns about the banking market led other US banks to borrow a record $165 billion from the US Federal Reserve a week after SVB and Signature Bank fell.

On April 7, Jamie Dimon, CEO of JPMorgan, stated that Americans are cutting back on lending as large banks fail, which could be an indication of a potential economic downturn in the United States. Despite reports of an impending recession, US Treasury Secretary Janet Yellen remains confident that her nation's economy will expand and inflation will decline.

source: bloomberg.com


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