Banks Are Flooded With Deposits As They Cut Back on Lending

We are living in times of extremes, particularly when it comes to economic data, and this is reflected in the divergence of bank lending and deposit gathering; Axios has an excellent graph, showing data from the Federal Reserve, that shows year of year growth in bank deposits of 14.3% in May while consumer lending was down 4.4%; this means that consumers and small businesses are not starting new projects or focusing on growth but are instead hoarding cash during these uncertain times; at the same time banks are tightening lending standards so those people looking for a loan are finding it more difficult. Axios.