Major banks in the US are toning down their lending practices amid ongoing concerns about the state of the American economy, new research has established.
Figures released today (26 June) by Bloomberg have revealed that total loans from the country's four largest financiers declined by 4.9 per cent in the first quarter of this year when compared to the corresponding period in 2010.
Bank of America, Citigroup, Wells Fargo and JP Morgan loaned some $3.04 trillion over the course of this three-month timeframe as they look to reduce their assets ahead of the implementation of incoming stricter capital regulations.
Regional banks across the US are therefore picking up the slack and taking advantage of this trend by continuing to offer loans and acquiring customers who have been unable to obtain finance from their larger counterparts.
Indeed, lending by the 17 smallest firms listed on the KBW Bank Index rose by 9.8 per cent to $1.27 trillion in the same two-year period.
By Tony Aynsley