Free Trial
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
US
- Checking in with the Fed’s weekly banking H.8 data, most recently for May 10, total loans and leases in bank credit declined for the latest two weeks with -$3B after -$17B as it reverses a reasonable +$42B lift from the final week of April.
- It remains far more measured than the $45-60B weekly declines in the second half of March, but still maintains a clearly softer trend than credit extension prior to emergence of regional banking issues.
- How much this softer banking credit growth weighs on the economy remains an area of contention. It was again shown today by SF Fed’s Daly (’24 voter) saying her prior from speaking to contacts is that the credit tightening is worth as much as a couple hikes in the Fed Funds rate although has seen other estimates ranging from nothing at all to as much as 200bps.
- By sector, the latest small decline in the stock of credit has been concentrated in commercial & industrial loans (perhaps unsurprising after the recent issues for the sector in the Fed’s SLOOS) plus some for ‘other’ loans.
- The breakdown by bank is interesting though, with small banks continuing to extend more credit than their larger counterparts. Even on a four-week average basis, small banks have been increasing loan books by an average $8B per week compared to $0B for large banks.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok