Big U.S. Banks Cut Loans to Record Low, Again, as Deposits Jump
- Total loans fell 8% in year through March to $5.45 trillion
- Loans comprise 53.9% of deposits, lowest in 36 years of data
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The 25 biggest U.S. banks collectively reduced their loan holdings by 8% in the year through March, according to the Federal Reserve’s latest weekly survey.
Total loans fell by $447 billion to $5.45 trillion, Fed data show. Meanwhile, total deposits, which provide the funds that banks lend out to borrowers, jumped 16% to $10.13 trillion. Their combined loan-to-deposit ratio now sits at 53.9%, the lowest reading in 36 years of weekly Fed data.