US bank credit contracts, loans drop in latest week: Fed data

Bank credit at US commercial banks shrank in the latest week as commercial banks pulled back on lending to businesses, data published by the Federal Reserve showed on Friday, reports Reuters.
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 year earlier, its second straight year-over-year drop.
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 year earlier, commercial and industrial (C&I) loan growth slowed sharply to less than 1 per cent.
The trends reflect reduced demand from borrowers amid the Fed's rapid interest-rate hikes, as well as tightening credit standards and the fallout from the US regional bank failures this year.