Wednesday, 22 October 2014

The Drivers of U.S. Bank Credit Growth

For the week ending 8th October, Bank Credit for all U.S. commercial banks increased $651.2 billion, or 6.5%, compared to the same week last year. Bank Credit is the major asset item on banks' balance sheets and consists of various types of loans and investments and is a key driver of money supply growth (together with the Fed monetizing government and agency debt). 

The chart and table below show the components of bank credit that generated this increase. 

Also read:

U.S. Banks Are Now Operating With 100% Reserves - Is Full-Reserve Banking The Next Step?