Tuesday, January 20, 2009

A Closer Look At Lending

Below are charts from the St. Louis Federal Reserve of various components of lending. All charts show a year over year percentage change. Please click on all images for a bigger image.

Above is a chart for total credit outstanding. While the number is still positive it has taken a bit hit over the last year or so.

Total non-revolving credit outstanding is dropping. As is

Total non-revolving

Real estate loans outstanding are dropping as are

Commercial and industrial loans

However, total consumer loans have leveled off.

What does this tell us? While the rate of change is still positive for all areas, the rate of change is decreasing. In some cases, the rate of change is very large and sudden. This is consistent with the anecdotal information from the Beige Book at the Senior Loan Survey mentioned below.