Bank Lending Continues to Fall
July 2, 2009
Commercial bank lending to commercial firms and manufacturers has continued to fall throughout this recession. It shows no signs of recovering. At present, lending has not increased, year to year. It shows signs of going negative soon. At some point, it will turn up -- not necessarily because of increased lending, but because of the extent of the previous year's decline.
This chart is from the St. Louis Federal Reserve Bank.
