NEW YORK — One of the great mysteries and biggest concerns in the economy right now is the slowing growth in bank lending. Economists are searching for answers but none are entirely satisfying, the Wall Street Journal reported today.
Total loans and leases extended by commercial banks in the United States this year were up just 3.8 percent from a year earlier as of March 29, according to the latest Federal Reserve data. That compares with 6.4 percent growth in all of last year, and a 7.6 percent pace as of late October.
The slowdown is more surprising given the rise in business and consumer confidence since the election. And it is worrisome because the lack of business investment is considered an important reason why economic growth has remained weak, the Wall Street Journal noted.
The full story is available at the Wall Street Journal.