Bank deposits fell slightly last week and lending also declined for the first time in a month, the Federal Reserve reported Friday, but there was little sign of major stress in the U.S. financial system.
Total bank lending declined by $49 billion to $12.09 trillion in the seven days ending June 7, the Federal Reserve reported Friday. Big banks accounted for almost all the decline in loans.
Total bank deposits, meanwhile, slipped by $79 billion last week to $17.2 trillion.
All figures are taken from the Federal Reserve’s weekly H8 survey and are seasonally adjusted.
Key details: Commercial and industrial loans — a key economic driver — fell by $13 billion to $2.75 trillion. These loans are still near a record high, however.
Big picture: The banking system came under the most stress in more than a decade after a spate of bank closures in the spring. But there’s not much sign of lingering damage.
“It is still not clear that recent strains in the banking sector materially intensified the tightening of lending conditions,” Fed Gov. Christopher Waller said in speech on Friday.
The financial system is a key conduit for the U.S. economy, funneling money from depositors to individuals and businesses seeking loans.
Market reaction: Stocks
U.S. financial markets are closed Monday for Juneteenth Day.