US Bank Lending Slumps by Most on Record in Final Weeks of March

Re:US Bank Lending Slumps by Most on Record in Final Weeks o... by ljoshua on Monday April 10, 2023 @11:23AM (#35513430)

When the article says, “Commercial bank lending dropped nearly $105 billion in the two weeks ended March 29, the most in Federal Reserve data back to 1973,” and later also notes that banks “divested” themselves of billions of dollars in loans, where is the money going?

Are they selling the loans off their books to third parties? Or are they just refusing to make new loans that they would have otherwise consistently made?

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Re:US Bank Lending Slumps by Most on Record in Final Weeks o... by mholyland on Monday April 10, 2023 @11:40AM (#35513634)

I was listening to Jim Cramer discuss it this morning, and he said the banks are nervous about lending out money/investing, in what is usually considered safe. Things like US treasuries or real estate. They are fearing a liquidity crunch.

I'm looking for a more concrete source.

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Re:US Bank Lending Slumps by Most on Record in Final Weeks o... by NoboruWataya on Monday April 10, 2023 @01:10PM (#35514595)

I can't answer that concretely, but there is an active secondary market for corporate loans, so I have always understood divestment to mean selling the loans to third parties (eg, credit funds and CLOs), as you mention.

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