Following on from the article earlier this week and the money supply report this morning, bank lending growth tanked again this week.
The drop was driven by steep declines in the growth of Commercial and Industrial lending.
As bank lending is by far the biggest of the two main components of bank credit (the other being securities owned by banks), the bank credit growth rate is being pulled down as well...
The drop was driven by steep declines in the growth of Commercial and Industrial lending.
The four biggest components of bank lending (y/y % change)
As bank lending is by far the biggest of the two main components of bank credit (the other being securities owned by banks), the bank credit growth rate is being pulled down as well...
...which then drags the money supply growth rate down with it.
Though there are lags involved, red flags should by now be flashing for Austrian Business Cycle practitioners.
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