Bloomberg: US bank lending fell by $105 billion
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US bank lending has fallen by $105 billion over the past two weeks, after the closure of some of the largest US lenders, reports Bloomberg. According to the Federal Reserve, this is the largest decline since 1973.
Over the past week, the reduction amounted to $45 billion, writes Bloomberg. According to the agency, primarily due to a reduction in the volume of loans issued by small banks.
On March 10, SVB, the 16th largest US bank, filed for bankruptcy. Following him, the New York Signature Bank declared bankruptcy. It became the third largest bank failure in US history. In the week following the collapse of SVB and Signature Bank, other US banks borrowed a record $165 billion from the US Federal Reserve due to banking market concerns.
The day before, April 7, the head of JPMorgan, Jamie Dimon, said that against the background of the bankruptcy of the largest banks, US citizens are reducing lending, which may be a sign of a possible recession in the American economy. US Treasury Secretary Janet Yellen despite rumors of a looming recession continues believe that her country’s economy will grow, inflation will decline.
How economists analyze the banking crisis – in the material “At least three volumes per month”.
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