Bank Lending Starts to Bloom
The Federal Reserve reports that through the third week of March, overall bank loans grew at an average of 2.5 percent year-over-year. However, this figure reflects a January growth rate that was the lowest monthly growth rate since 2011, concealing a trend of rising growth that is better shown through the monthly averages. By month, bank loans rose 2 percent in January, 2.5 percent in February, and 3.4 percent for the first three weeks of March. Moreover, business lending climbed for 10 of the first 12 weeks of the year and, by the third week of March, was up 9.7 percent from the first quarter of 2013. Although business loans alone will not ensure recovery in banks' revenue growth, their sudden reversal of six quarters of decelerating growth indicates better economic prospects than displayed in the first-quarter data.
From "Bank Lending Starts to Bloom"
Wall Street Journal (04/03/14) Carney, John
The Federal Reserve reports that through the third week of March, overall bank loans grew at an average of 2.5 percent year-over-year. However, this figure reflects a January growth rate that was the lowest monthly growth rate since 2011, concealing a trend of rising growth that is better shown through the monthly averages. By month, bank loans rose 2 percent in January, 2.5 percent in February, and 3.4 percent for the first three weeks of March. Moreover, business lending climbed for 10 of the first 12 weeks of the year and, by the third week of March, was up 9.7 percent from the first quarter of 2013. Although business loans alone will not ensure recovery in banks' revenue growth, their sudden reversal of six quarters of decelerating growth indicates better economic prospects than displayed in the first-quarter data.
From "Bank Lending Starts to Bloom"
Wall Street Journal (04/03/14) Carney, John
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