Banks Facing Weak Loan, Deposit Growth; Credit-Risk Transfers Gain Popularity

 Weak loan growth is expected to weigh on banks this earnings season, S&P Global Market Intelligence wrote. Total U.S. bank loans increased just 0.4% between June 26 and Sept. 25, according to Fed data, and as of June 30, total outstanding loans and unused commitments were up just 1% year-over-year. What's more, bank economists don't expect lower rates to spur a big increase in lending in the coming months, and a number of institutions have already lowered loan guidance for the second half of the year. Meanwhile, deposits grew 0.7% from June 26 to Sept. 25. 

Another S&P article discusses how U.S. banks are increasingly likely to use credit-risk transfers to manage capital.

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Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
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