Drop-in Bank Deposits
In the week ended July 12, a marked decrease was observed in the deposits at large US banks. According to the Federal Reserve's latest data, deposits fell by $78.7 billion to reach $17.289 trillion, representing a week-over-week decline on a seasonally adjusted basis.
Lending Activities Rise Gradually
On the other hand, commercial bank lending recorded a subtle increase. The lending activities at these institutions inched up by $2.10 billion, culminating in a seasonally adjusted total of $12.093 trillion during the week, as indicated by the Fed's data.
A Close Look at Loan Categories
Diving into different loan categories, a varied pattern was noticed. The residential real estate lending sector saw an increase of $8.2 billion. However, commercial real estate loans experienced a fall of $2.00 billion. Furthermore, consumer loans also experienced a drop of $2.1 billion from the prior week.
Commercial and Industrial Loans See a Reduction
Lastly, commercial and industrial loans experienced a dip. These loans slipped by $2.1 billion from the week earlier, once again on a seasonally adjusted basis, mirroring the overall falling trend in the deposit sector.