Palomino

Total Bank Loans and Leases Reach a New Record

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.