Commercial bank lending rose $41.6 billion in the week ended April 26 after increasing $12.4 billion the prior week, according to seasonally adjusted data from the Federal Reserve out Friday. The gain was fueled by the largest rise in loans from small banks since December.
Deposits edged down during the week to the lowest level since mid-2021, reflecting a drop at foreign institutions in the US. Deposits at small and large US banks increased.
Loans for residential and commercial real estate lending increased, along with consumer lending. Commercial and industrial loans were little changed.
To gauge credit conditions and concerns about contagion after several regional bank failures, economists are monitoring the Fed’s so-called H.8 report. The data provide an estimated weekly aggregate balance sheet for all commercial banks in the US.
Earlier this week, JPMorgan Chase & Co. agreed to acquire First Republic Bank in a government-led deal for the failed lender. It was the second-biggest bank failure in US history. The collapse of First Republic followed failures of Silicon Valley Bank and Signature Bank in March.
By bank size, lending increased by almost $10 billion at the 25 largest domestically chartered banks and rose $30.7 billion at smaller commercial banks. Lending by foreign institutions in the US was little changed.
On an unadjusted basis, loans and leases increased $43.5 billion.
The biggest 25 domestic banks account for almost three-fifths of lending, although in some key areas — including commercial real estate — smaller banks are the most important providers of credit.
The Fed’s report, known as H.8, provides an estimated weekly aggregate balance sheet for all commercial banks in the US.