WSJ: Banks finally see lending boost

Author: Greg Michalowski | Category: News

A weak point in the economy, is showing some life



The WSJ is reporting that the banks are finally seeing a boost in lending.

The weak loan growth has been a thorn in the economies side. The pace of growth started to slow in late  2016 and stayed low into early 2018.  

In 2017, the article states that the lending rose just 0.7%. That compared to growth of 10.6% and 6.5% in 2015 and 2016. 

However, the tide may be turning.

The latest data from the Fed, showed that Commercial and Industrial loans (C&I loans) are up 3.1% from a year earlier. At the end of January that growth was just 0.9%.  

It is still early but it is a step in the right direction for lending and may be a sign of increased confidence and a push toward more capex spending. That in turn could increase productivity in the economy which has been languishing and helping to keep a lid on US growth.

The full article could be found HERE (it may be gated).

JP Morgan is up $0.46 or 0.41% at 113.50.
Citigroup is down -$0.29 or -0.40% at $72.39

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