US bank deposits up $21.1b, pickup in loans shows stable credit

BLOOMBERG

US bank deposits rose in the latest week, a welcome break in a slide that’s seen cash flow into higher-yielding money-market funds amid unease about smaller lenders.
Loans also increased, suggesting credit conditions are stable despite several recent bank failures.
Deposits rose by $21.1 billion in the week ended on April 19, according to seasonally adjusted data from the Federal Reserve. The advance was due to a pickup in large time deposits.
On an unadjusted basis, deposits decreased $145.5 billion, though these data can be volatile in weeks when tax payments are due.
Commercial bank lending in the US increased on a seasonally adjusted $15 billion during the week. On an unadjusted basis, loans and leases climbed $21 billion.
Residential lending increased nearly $10 billion, commercial real estate loans rose $5 billion, and consumer loans climbed $6 billion from the prior week. Commercial and industrial loans fell by $5.3 billion.
To gauge credit conditions, economists are closely monitoring the Fed’s so-called H.8 report, which provides an estimated weekly aggregate balance sheet for all commercial banks in the US.
By bank size, lending increased at the 25 largest domestically chartered banks and smaller commercial banks increased. Lending by foreign institutions in the US also rose.
The biggest 25 domestic banks account for almost three-fifths of lending, although in some key areas — including commercial real estate — smaller banks are the most important providers of credit.
The Fed’s report, known as H.8, provides an estimated weekly aggregate balance sheet for all commercial banks in the US.
The report is primarily based on data reported weekly by a sample of about 875 domestically chartered banks and foreign-related institutions.