In the week ending May 17, US commercial banks reported a three-week high in lending after adjustments, with lending activity rising by 10.4 billion dollars over that period. The figures come from Bloomberg, which cites data from analysts at the Federal Reserve System. This pattern suggests the banking sector is regaining some traction following the distress that hit several major investment houses, including Silicon Valley Bank. On an unadjusted basis, loan and lease volumes also rose by 2.3 billion dollars by May 17.
Analysts noted that lending conditions appeared to stabilize, even as lending standards remained tighter and borrowing costs stayed higher. Commercial bank lending increased by 10.4 billion dollars in the week ended May 17, marking a three-week peak. This shift points to a tentative improvement in liquidity and credit access for businesses and households alike.
Mid-May adjustments also showed a rise in the overall monetary stock of bank deposits. The accompanying note highlighted a roughly 30 billion dollar increase, with growth observed across credit institutions featuring varying capitalization levels. These deposit inflows can bolster lenders’ ability to extend credit, even amid persistent rate pressures.
At the IMF meeting later in May, concerns about financial stability resurfaced in light of the earlier collapses of several large US investment banks, notably Silicon Valley Bank. While depositors and capital outflows have produced only a modest impact on credit conditions up to now, observers warn the situation could evolve. The evolving mix of liquidity and sentiment remains a key factor shaping the path ahead for lending, deposit dynamics, and the broader financial system. [Citation: Federal Reserve System data; Bloomberg reporting; IMF discussions]