Tuesday, October 07, 2008

Commercial and Industrial Loans Set New Record

Commercial and industrial loans at large commercial banks in the U.S. set a new record of $801 billion in the week ending September 24, going above the $800 billion for the first time, according to weekly banking data just yesterday by the Federal Reserve (see chart above, click to enlarge).

It doesn't seem like the credit crunch/crisis is affecting commercial lending at large U.S. banks yet????


At 10/07/2008 7:21 PM, Blogger bobble said...

This comment has been removed by the author.

At 10/07/2008 7:30 PM, Blogger bobble said...

the commercial paper market is frozen.

to replace normal commercial paper financing, companies have to use existing bank lines of credit instead.

subtract about $200 billion from that chart to get the real change in C&I credit outstanding.

"The commercial paper market has shrunk by more than $200 billion in the past three weeks, led by financial commercial paper . . . The latest figures on commercial bank lending suggest that some firms have been able to turn to their banks to draw on pre-arranged lines of credit . . "
read more here

At 10/07/2008 7:49 PM, Anonymous Anonymous said...

Companies are drawing down existing credit lines and hoarding cash.

At 10/07/2008 8:02 PM, Blogger K T Cat said...

Bobble, it's not just the commercial paper market! Now the Internets Tubes are frozen! I went to that link and got this:

"This site is temporarily unavailable.
Please notify the System Administrator"


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