U.S. Banks’ Loans Drop to Another Record Low as Deposits Surge
- Loans up $41 billion in latest week; deposits up $103 billion
- One-third of bank assets in cash, government-backed securities
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U.S. bank lending fell to a new low this month, Federal Reserve data show, as a cash-rich banking system continues its cautious approach to making new loans, Federal Reserve data show.
Total loans and leases dropped to 62.8% of bank deposits in the week ended March 10. Lenders use deposits to fund new credit for their customers. Total assets at U.S. banks climbed 0.7% to $21 trillion, according to the Fed.