Sunday, 18 of February of 2018

Economics. Explained.  

Commercial and Industrial Loans

January 3, 2018

Commercial and industrial loans, which are more commonly called “business loans”  declined at a 1.8% pace in November after having risen 0.9% in October and 6.5% in September (the light green bars on the left scale).   The year-over-year growth rate has snow lipped to a 0.9% pace  (green line on the right scale).  However in the past six months C&I loans have risen at a 2.1% pace and in the past three months at a 1.8% pace so growth appears to have quickened just a bit in recent months.

Total loan growth had been slowing for all types of bank lending — consumer , real estate, and commercial and industrial loans.  Given that the slowdown began right after the election it is possible that it is connected to the uncertain fate of Dodd-Frank legislation under Trump.  Right now with total loans having grown 3,7% in the past year, but having climbed at a 5.0% pace in the past six months and a 5.9% rate in the past three months it appears that bank lending is accelerating.

Stephen Slifer


Charleston, SC

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