Commercial and Industrial Loans Set a New Record

Commercial and industrial loans at large commercial banks in the U.S. set a new record of $801 billion in the week ending September 24, going above the $800 billion for the first time, according to weekly banking data just yesterday by the Federal Reserve (see chart above, click to enlarge).

It doesn't seem like the credit crunch/crisis is affecting commercial lending at large U.S. banks yet?

Comments

[Jack Walker:]

Based upon this you would wonder where is the lending crisis?

2008 Oct 08 01:12 PM

[tuj:]

The spike in the commercial paper rate (and TED spread) would suggest there is indeed a problem. research.stlouisfed.or...

Look at the total outstanding credit of all banks: it was completely flat until just very recently: research.stlouisfed.or...[1][id]=TOTBKCR&s[...

The same thing shows up when you look at the total loans of commercial banks: research.stlouisfed.or...[1][id]=TOTLL&s[1]...

And then when we transform the weekly series from Dr. Perry's graph to a YoY %-change, its clear that lending has pulled back: research.stlouisfed.or...[1][id]=CIBOARD&s[...

Finally, the TED spread really has gone nuts, and this is a major indicator of problems in the banking world. As for loans setting a new record... well, according to your data series, EVERY year set a new record; that's natural expansion.

2008 Oct 09 12:21 PM

[tuj:]

Eh, my links didn't make it. Here are the series, without the nice transformations or formatting.

Commercial and Industrial Loans of Weekly Reporting Large Commercial Banks (look at the YOY %change)
research.stlouisfed.or...

Bank Credit of All Commercial Banks (look at last 5 years)
research.stlouisfed.or...


Total Loans and Leases of Commercial Banks (look at last 5 years)
research.stlouisfed.or...

2008 Oct 09 12:28 PM