US bank credit on the up, figures show

12 December 2011

Bank credit in the US is expanding at its quickest rate since 2008 as the country continues its recovery in the aftermath of the recession, new figures have shown.

According to data published by the Federal Reserve today (12 December), financiers increased their loans in the industrial and commercial arenas by an average yearly pace of around ten per cent during the third quarter of 2011.

Meanwhile, total bank credit went up by 3.9 per cent throughout this three-month timeframe and securities in bank credit rose by 1.7 per cent during the same period.

Both these figures had previously been in stages of either decline or extremely low-level growth for the rest of the year.

This comes after data obtained in a freedom of information request recently showed that the Federal Reserve granted loans of $1.2 trillion to banks in a single day at the height of the economic downturn.

By Claire Archer

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