What Credit Crisis? Total Bank Credit of All Commercial Banks Exceeds $10 Trillion

According to the most recent weekly banking data from the Federal Reserve, the Total Bank Credit of All Commercial Banks exceeded $10 trillion for the first time during the week of October 22 (see chart above, click to enlarge).

Compared to mid-October 2007, total bank credit in October 2008 increased by almost 11%, and is almost $1 trillion higher ($977 billion). Compared to mid-2000, total bank credit has doubled from $5 trillion to $10 trillion.

Comments

[Paul Killinger:]

Let's hope we're able to pay it all back... ha, ha!

2008 Nov 07 08:46 AM

[contrariwise:]

How do drawdowns of credit lines factor
in this 11%/ $977 billion expansion of bank credit?

How much of this $977 billion expansion of bank credit
is voluntary growth of freely issued new credit?
Versus growth that comes when customers, fearing having
their credit lines withdrawn, draw
down their lines of credit?

2008 Nov 07 05:29 PM