US bank loans at a time of stress
Amid a spate of US bank failures, we’ve examined prospects for a potential credit crunch from several different angles.
This chart breaks down trends in the value of loans extended by US domestic banks.
The second-quarter turmoil amid the collapse of Silicon Valley Bank resulted in shrinking loan supply, a trend that bottomed out in April. The flow of commercial real estate and C&I (Commercial & Industrial) loans decreased for four consecutive weeks during that period.
These segments bounced back by May after the additional support provided by the Federal Reserve. Since the collapse of First Republic a month ago, increases have eased.