The numbers: Commercial and industrial loans — a key financial driver — rebounded by a seasonally adjusted $6.9 billion to $2.76 trillion in the week ending Aug. 30, the Federal Reserve mentioned Friday.
Lending has been dropping for 4 straight months by means of July following the collapse of Silicon Valley Bank.
Key particulars: Lending by giant banks rose by $5.2 billion to $1.55 trillion.
Lending by small banks slipped $500 million to $717.9 billion in the latest week.
Total financial institution deposits fell by $70.2 billion to $17.3 trillion in the identical week. Deposits peaked at $18.2 billion in mid-April 2022, simply after the Fed started elevating its benchmark rate of interest.
Big image: Banks have been tightening lending requirements and chopping again on lending to shore up their monetary well being. This has been tightening monetary situations. The economic system appears to be rising regardless of these headwinds, however some economists assume the tightening will get extra extreme because the 12 months progresses.
Market response: U.S. shares completed greater Friday after a quiet week throughout which the Dow Jones Industrial Average
misplaced 1%. The 10-year Treasury yield
rose by 8.4 foundation factors this week.