A break down of bank credit at commercial banks reflects lackluster business loan creation, a struggling real estate market, a slow decay in consumer spending, a surprising scramble to hold cash assets. The scramble to hold cash assets in excess of the 1980-1981 and 2008 crisis levels screams
The spike in cash assets is most noticeable.
Cash Assets 12-Month Change (CASH12LN) And Percentage of Total Bank Credit (%TBC)
Real estate and consumer loans are contracting. This is a major concern for a consumption-driven and housing-dependent economy.
Real Estate (RE) and Home Equity (HE) Loans Year-over-Year Change For All Commercial Banks
Consumer (CL) and Credit Card (CC) Loans Loans Year-over-Year Change For All Commercial Banks
Business and commercial loans (BL loans) have been slowly recovering since 2010. Unfortunately, they represent less than 14% of total credit creation in 2011. BL Loan accounted for nearly 17% total credit creation as the debt crisis unfolded in 2008.
Business & Commercial, Real Estate, and Consumer Loans Year-over-Year Change For All Commercial Banks
Source: federalreserve.gov
