US Loan Growth Rate the Highest Since the Recession
Location: Tokyo
Date: 2014-08-11
US credit growth continues to accelerate, reaching the highest
year-over-year pace since the Great Recession.
In 2012 the growth was primarily driven by corporate debt (chart
below) as banks remained cautious on real estate and consumer
lending. While corporate loan growth remains strong - at around 11%
per year - other sectors are now experiencing faster credit
expansion.
In a complete contrast to the situation in the Eurozone, both real
estate (particularly commercial) and consumer credit growth rates
have improved materially this year. Consumer credit is no longer
just driven by autos, with credit card debt picking up as well.
The only major headwinds for this trend currently are some of the
geopolitical risks (Iraq, Russia, etc.). Consumers, companies, and
banks are still fairly jittery and it won't take much to dampen the
supply of and/or the demand for credit.
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