Total Bank Loans and Leases Reach a New Record

According to banking data from the Federal Reserve that was updated today, Total Loans and Leases of Commercial Banks in the U.S. continue to grow, and have doubled from $3.5 trillion in 1999 to $7 trillion in 2008. On a monthly basis, Total Bank Loans and Leases exceeded $7 trillion for the first time in September 2008, and reached $7.258 trillion by the first week of October.

We keep hearing news reports that describe U.S. credit markets as being "tight," "frozen," "seized-up," "ultra-tight," "drum tight," etc. Why isn't that much-publicized credit tightness showing up in commercial bank loan data, which keeps setting record highs, and is now more than $7 trillion?

Comments

[Paul Killinger:]

Mark,

I relish your contrarian data. Keep it coming!

My own view is the news media, having a vested interest in the outcome of the upcoming election, isn't about to let any good news get in the way of a bad story between now and Nov. 4th.

But when we wake up on the 5th, all will be well in the world. Let's see if that doesn't indeed happen.

2008 Oct 15 10:35 AM

[Palomino:]

I think the reason the amount of loans is going up is that banks have always run huge books of committed loan facilities. Corporate clients generally do not draw these down but in today's conditions, with CP, ABCP and bond markets closed, I would guess they are all drawing down their loans at historically unprecedented levels to meet their working capital and re-financing needs. The banks can't get out of these obligations so their balance sheets are ballooning.

2008 Oct 15 01:01 PM