US bank credit contracts, loans tumble in newest week: Fed info

© Reuters. A person is seen in silhouette finish to plant life at an save of enterprise building in the financial district of Original York Metropolis, U.S., June 14, 2023. REUTERS/Shannon Stapleton/File photo

(Reuters) -Bank credit at U.S. commercial banks shrank in the most fresh week as commercial banks pulled again on lending to businesses, info published by the Federal Reserve confirmed on Friday.

Overall bank credit fell to $17.23 trillion in the week ending Aug. 9, down from $17.25 trillion a week earlier and $17.32 trillion a 300 and sixty five days earlier, its 2nd straight 300 and sixty five days-over-300 and sixty five days tumble.

Loans and leases fell to $12.13 trillion, from $12.15 trillion the week prior; commercial and industrial loans slipped to $2.74 trillion, from $2.75 trillion in the week ending Aug. 2. From a 300 and sixty five days earlier, commercial and industrial (C&I) loan development slowed sharply to no longer up to 1%.

The traits reflect diminished demand from debtors amid the Fed’s instant interest-price hikes, to boot to tightening credit requirements and the fallout from the U.S. regional bank failures this 300 and sixty five days.