Loan Growth Stagnating Despite Lower Cost Capital

Since the National Bureau of Economic Research determined that the last U.S. recession ended in June 2009, bank loan growth in the U.S. has been anemic. Growth averaged about 1.25% annually for a total loan growth of 4%, taking total loans outstanding at U.S. banks up from about $7.3 trillion to about $7.6 trillion.

Given the fact that this coincided with the greatest monetary intervention and lowest engineered cost of capital to banks and borrowers in U.S. history this level of growth is alarming. This issue is even more disturbing though when the performance of different types of loans is examined....421 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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