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<div style="float: right; margin: 15px 0 20px 20px;"><table border="0" cellspacing="0" cellpadding="0"><tbody><tr><td colspan="2"><a href="https://static-ssl.businessinsider.com/category/chart-of-the-day"> </a></td></tr><tr><td><a href="http://www.businessinsider.com/category/chart-of-the-day"></a></td><td><a href="http://www.businessinsider.com/breakdown-of-horrific-q1-gdp-data-2014-6"></a></td></tr></tbody></table></div>The best economic data can sometimes surface when the market isn't looking.
The <a href="http://www.federalreserve.gov/releases/h8/20130628/">weekly H.8 report</a> from the Federal Reserve, which shows the assets and liabilities of commercial banks in the U.S., is released at 4:15 on Friday afternoon.
And this week's report looks pretty good.
The most recent report showed that commercial bank loans and leases in bank credit continue to surge, and are now up more than 5% year-over-year. 
Next week is jam-packed with headline economic data, and all of these data are important for gauging the health of the economy.
Credit growth, however, is the way you really find out how things are going out there.
And it looks pretty good. <div class="KonaFilter image-container display-table"><div><div class="image">Business Insider</div></div></div>

Credit Growth Continues To Boom

<div class="KonaFilter image-container float_right"><div class="image on-image">REUTERS/Kim Kyung-HoonA paramilitary policeman standing guard is silhouetted on a large screen showing propaganda slogans on Tiananmen square next to the Great Hall of the People, where the closing ceremony of the Chinese Communist Party plenum is going to be held on Tuesday, in Beijing, November 11, 2013. </div></div>Chinese <keyword id="48104" type="UNKNOWN" weightage="60" keywordseo="credit-growth">credit growth</keyword> slowed in October. New loans fell to 506 billion yuan, down from 787 billion yuan in September. Outstanding loans climbed 14.2%, down from 14.3%. 
M2, a broad measure of money supply climbed to 14.3% on the year, compared with 14.2% the previous month. 
And total social financing (TSF) slowed to 856.4 billion yuan, 1.40 trillion the previous month. This was in part because of slower new bank loans in October which fell to 506.1 billion yuan. 
"Shadow banking <keyword id="988441" type="UNKNOWN" weightage="60" keywordseo="deleveraging">deleveraging</keyword> remained the case, as new trust loans shrank to a 15-month low of CNY 40bn and outstanding bankers' acceptances contracted CNY 39.8bn mom - the sixth monthly contraction in the past seven months," wrote Societe Generale's Wei Yao. 
Based on all of this Yao expects that total credit growth slowed to a 13-month low of 19.2%, down from 20% in September.
Yao has previously said that <a href="http://www.businessinsider.com/chinas-strategy-to-deflate-debt-bubble-chart-2013-9">policymakers are aware of China's debt problem</a> and are trying to "engineer a gradual deleveraging process."
And it is finally registering in official statements.
In its Q3 2013 monetary policy report, the People's Bank of <keyword id="1334" type="COUNTRY" weightage="60" keywordseo="China">China</keyword>, emphasized the deleveraging process. "One major change in the statement is that it sees the economy in a prolonged process of deleveraging and capacity reduction," said Dong Tao of Credit Suisse.
"The central bank described that the old growth model, which was driven by export and local government investment, should be revamped, but a new growth engine has not been established," added Tao. "This is the first public confirmation that the monetary policy may become tightening biased, though the official stance remains neutral."
October's credit data seems to support this idea, and is a negative for near-term growth.

Deleveraging Has Finally Begun In China

Credit growth outpaced deposit growth for commercial banks in June, the <keyword id="6354335" type="General" weightage="50" keywordseo="reserve-bank-of-india" source="Orion">Reserve Bank of India</keyword> (<keyword id="30067" type="General" weightage="100" keywordseo="rbi" source="Orion">RBI</keyword>) said in its quarterly statistics on deposit and credit of commercial banks for June 2022 released on Thursday. As credit growth is outpacing deposit growth in the recent period, credit-deposit (C-D) ratio has been on the rise: In June it stood at 73.5 per cent at the all-India level (70.5 per cent a year ago) and 86.2 per cent for <keyword id="128814" type="General" weightage="80" keywordseo="metropolitan" source="Orion">metropolitan</keyword> branches of banks (84.3 per cent a year ago), the RBI said. According to RBI, the credit growth (y-o-y) accelerated further to 14.2 per cent in June from 6 per cent a year ago and 10.8 per cent a quarter ago. Credit growth has been broad-based: All the population groups (i.e., rural, semi-urban, urban and metropolitan), all the bank groups (i.e., public/private sector banks, foreign banks, regional rural banks, small finance banks) and all the regions of the country (i.e., central, eastern, north-eastern, nothern, southern and western) recorded double-digit annual credit growth in June, the RBI said. Aggregate deposit growth (y-o-y) has remained in the range 9.5-10.2 per cent during the last five quarters: Metropolitan branches continue to account for over half of the bank deposits and their share increased marginally over the last one year. The share of current account and savings account (CASA) deposits in total deposits has been increasing over the last three years (42.0 per cent, 43.8 per cent and 44.5 per cent in June of 2020, 2021 and 2022, respectively). SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/sustainability/news/takeouts-without-plastics-is-impractical-now-say-restaurants-with-few-or-no-eco-friendly-options/articleshow/93783273.cms">Takeouts without plastics is impractical now say restaurants with ‘few or no’ eco-friendly options</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/careers/news/now-pm-modi-bats-for-flexible-workplaces-and-says-they-help-women/articleshow/93789410.cms">Now, PM Modi bats for flexible workplaces and says they help women</a>

Credit growth outpaced deposit growth of banks in June: RBI

<div class="image-container float_right" style="width:400px"><div class="image"></div><a href="http://www.flickr.com/photos/orphanjones/762062828/in/photostream/">Flickr / orphanjones</a></div>U.S. <keyword id="437168" type="ORGANIZATION" weightage="60" keywordseo="consumer-credit">consumer credit</keyword> data for the month of March are out.
Total credit expanded only $7.966 billion in March to $2.76 trillion in total.
Economists predicted it would expanded by $15.6 billion after an upwardly-revised $18.629 billion rise in February.
Revolving debt – credit cards and the like – actually fell by $1.71 billion.
Nonrevolving debt – auto loans, student loans, and the like – rose by $9.68 billion. Of that, federal government lending to consumers, almost all of which is for student loans, expanded by $3.9 billion.
<a href="http://www.businessinsider.com/consumer-credit-march-2013-5">Click here to refresh for the latest &gt; </a>

CONSUMER CREDIT GROWTH PLUNGES

<div class="image-container float_right"><div class="image">REUTERS/Tim WimborneA shop assistant uses an eftpos system at a Specialty Fashion Group owned Katies store in Sydney, December 11, 2012.</div></div>The Federal Reserve just released U.S. <keyword id="437168" type="ORGANIZATION" weightage="60" keywordseo="consumer-credit">consumer credit</keyword> data for the month of December.
Total credit to consumers rose $12.318 billion in November, below Wall Street's consensus estimate for a $14.250 billion advance. October consumer credit growth was revised down to $17.897 billion from the previously-reported $18.186 billion figure.
More to come...

CONSUMER CREDIT GROWTH FALLS SHORT OF EXPECTATIONS

U.S. consumer credit expanded by only $13.7 billion in January to $3.11 trillion (up 5.3% from a year earlier) after rising a downwardly-revised $15.9 billion in December, according to the latest data from the Federal Reserve.
More to come...

US CONSUMER CREDIT GROWTH SLOWS

(Eds: Adds Das quotes) Mumbai, Feb 24 () Slowing credit growth is one of the most critical challenges for the banking industry and there is a need to focus on prudent lending by the banks, Reserve Bank of India Governor Shaktikanta Das said on Monday. So far this year, credit growth in the country has moderated to 7-7.5 per cent. "The most critical challenge today for banks not just in India but also elsewhere is slowing credit offtake. It affects the profitability of banks," Das said at the Mint annual banking conclave here. To facilitate the flow of credit, the RBI has taken several steps like reducing repo rate, facilitating bank refinance to NBFCs for onlending to priority sector and providing long-term repo operation (LTRO), among others, he said. With such measures already in place, banks need to focus on credit offtake and flow of credit. "While doing all that the focus should be on doing prudent lending and also to improve the operational efficiency of the banks," he said. "Prudent lending doesn't mean that you (bank) stifle and stop sanctions of loans and other things because you (bank) need to lend and unless you lend, how do you improve your profitability," the governor said. He said the strength of a banking system depends on the strength of its corporate governance that fosters a robust and ethics-driven compliance culture. "The RBI can only lay down certain rules, guidelines or sign post but ultimately the bigger responsibility as the custodian of the depositors' money and having an accountability to both the depositor and shareholders, banks will have to necessary focus on improving their governance and compliance culture," Das said. The RBI would soon issue draft guidelines on corporate governance in public and private sector banks, he said. The governor said the RBI's endeavour has constantly been to improve the efficacy of its supervisory and regulatory functions, so that the resilience of the regulated financial entities can be enhanced. Speaking about NBFCs, he said that credit flow to small NBFCs have improved over the last one year. The asset-liability management (ALM) position and other relevant aspects of top 50 NBFCs are being closely monitored, which covers all NBFCs with asset size above Rs 5,000 crore. "The ALM of top 51-100 NBFCs is also being examined by the respective regional offices of the Reserve Bank," he said. Das said besides structural changes, digital disruptions will continue to transform the banking sector. Initiatives undertaken by the government, the RBI and the industry have led to a radical shift towards ubiquitous digitization, which has provided an impetus to adoption of technology, he said. HV MRMR

Slowing credit growth critical challenge for bank: RBI Guv

A research report by the <keyword id="19934368" type="General" weightage="100" keywordseo="state-bank-of-india" source="keywords">State Bank of India</keyword> (SBI) highlights the continuous upward trend in credit growth in Indian <keyword id="19934118" type="General" weightage="20" keywordseo="banks" source="keywords">banks</keyword>, which is outpacing the growth of deposits. This trend persists even as Indian households have substantially increased their investments in <keyword id="19929240" type="General" weightage="20" keywordseo="mutual-funds" source="keywords">mutual funds</keyword> and equities. For the last several months, investments of over Rs 21,000 crore are being done in mutual funds. Last month, during an event, <keyword id="20151998" type="General" weightage="20" keywordseo="RBI-Governor" source="keywords">RBI Governor</keyword> <keyword id="19913110" type="General" weightage="20" keywordseo="shaktikanta-das" source="keywords">Shaktikanta Das</keyword> noted that households are opting for capital markets over banks to invest or park their savings. However, the <keyword id="20352499" type="General" weightage="20" keywordseo="SBI-report" source="keywords">SBI report</keyword> states, "Latest fortnightly credit and deposit growth number shows credit growth continues to outpace deposit, though moderated from last year growth of 16.2 percent (June'23 YoY)." Specifically, for the fortnight ending July 12, 2024 the report noted that the credit growth for All Scheduled Commercial Banks stood at 14 per cent on a year-on-year basis, while deposit growth was reported at 11.3 per cent. Furthermore, the report also served a significant increase in credit to the industrial sector, which rose from 5.1 percent in March 2023 to 8.4 percent in March 2024, and recorded 8.1 percent growth in June 2024 year-on-year. This indicates a robust demand for credit within the industrial sector. Despite big savings going towards the capital markets, banks have managed to gather an incremental deposit of Rs 7.02 lakh crore in the year-to-date (YTD) period ending July 12, 2024. In comparison, the incremental credit extended by the banks amounted to Rs 3.80 lakh crore during the same period. This discrepancy illustrates that while credit growth is substantial, deposit growth remains essential to maintain balance. Additionally, the report highlighted that banks' reliance on high-cost deposits, such as Certificates of Deposit (CDs), has more than tripled. This increase is a response to the need to match the rising credit demand, showing how banks are adjusting their funding strategies to accommodate the growing demand for loans. <keyword id="19899808" type="General" weightage="20" keywordseo="rbi" source="keywords">RBI</keyword> Governor stated last month, "While bank deposits continue to remain dominant as a percentage of the financial assets owned by the households, their share has been declining, with households increasingly allocating their savings to Mutual Funds, Insurance Funds, and Pension Funds."

Credit growth in banks continues to exceed deposits, says new SBI report

The COVID-19 pandemic and the ensuing economic impact will lead <keyword id="612887" type="PERSON" weightage="20" keywordseo="Bank-credit-growth">bank credit growth</keyword> to nosedive to only 1 per cent in 2020-21, as against the 6.14 per cent achieved in the the last financial year, a report said on Monday. Domestic rating agency Crisil, which estimates bank credit growth to come at 0-1 per cent in this financial year, had earlier predicted it to expand by 8-9 per cent. Bank credit is an important factor illustrative of the general economic climate because it denotes aspects like the investments which are happening in a country or consumption of high-value items. Crisil expects a 5 per cent contraction in India's GDP for 2020-21. "The impact of the pandemic on credit growth will be a whopping 8 per cent," a Crisil statement said stressing that lenders' confidence needs to be boosted to push the number up. "This crisis is unprecedented and so will be its economic fallout – such as lower capex demand as well as lower discretionary spends, to name some – which will slow down credit offtake significantly across segments in the current fiscal," its senior director Krishnan Sitaraman explained. The low-base and a gradual economic recovery will push up the credit growth to high single digits in 2021-22, the agency said. It, however, rued that in the present, the uncertainty has made lenders risk-averse. "While the Reserve Bank of India has been reducing policy rates and the government has introduced measures to encourage lending, banks continue to be risk-averse, as reflected in higher surplus liquidity parked with the central bank and the high credit spreads for most borrowers," its director Subha Sri Narayanan said. Sitaraman said the corporate loan portfolio, which constitutes over half of the overall assets, will be the worst hit and is expected to de-grow during the fiscal because the lockdown has led to significant disruption in operations with limited capacity utilisation across sectors. Job losses and salary cuts will reduce expenditure on discretionary items and result in a slide in retail loans, which account for about a fourth of bank credit, it said. Purchase of new homes and vehicles are expected to be delayed, impacting demand for financing, it said, adding disbursements across most asset classes will see a significant decline this fiscal. The overall retail loans growth will fall to low single digits as against mid-teens over the last few years, it said. Factors aiding the retail growth to be in the positive territory will be lower repayments due to the moratorium and capitalization of the accumulated interest, it said. Loans to micro, small and medium enterprises and agriculture offer some solace for lenders this fiscal, the rating agency said. On the back of the government's fiscal stimulus package, small business loans will increase by 6-7 per cent and are likely to be driven by state-owned lenders, it said. Agri loans will grow by 3-4 per cent supported by expectations of a normal monsoon and a faster recovery in rural areas. SEE ALSO: <a href="https://www.businessinsider.in/finance/news/sbi-axis-bank-and-kotak-mahindra-bank-and-other-banking-stocks-are-raising-capital-to-fill-npa-hole/articleshow/76054599.cms">Indian lenders like SBI, Axis Bank and others need $20 billion⁠ in capital— most of it will go into filling up NPA holes</a> <a href="https://www.businessinsider.in/business/news/yes-bank-case-ed-raids-five-premises-of-cox-and-kings-in-mumbai/articleshow/76256791.cms">Yes Bank's top borrower Cox and Kings sees raids at five of its premises</a> <a href="https://www.businessinsider.in/stock-market/markets/news/sbi-share-price-is-up-5-are-brokerages-raise-target-prices-to-over-200/articleshow/76254529.cms">SBI share price is up 5% as brokerages raise target prices to over ₹200</a>

CRISIL forecasts bank credit growth will plummet to 1% with the economic fallout COVID-19

The present <keyword id="6354680" type="General" weightage="20" keywordseo="Credit" source="Orion">credit</keyword> growth is far away from being considered "exuberant" and there is no "big gap" between the credit growth and deposit accretion when looked at the absolute numbers, <keyword id="30067" type="General" weightage="100" keywordseo="rbi" source="Orion">RBI</keyword> Governor <keyword id="6359111" type="General" weightage="80" keywordseo="shaktikanta-das" source="Orion">Shaktikanta Das</keyword> said on Wednesday. "I think the credit growth at the current point is certainly far far away from exuberance or something like that. It is definitely very, very steady. We are monitoring it very very carefully," Das said while speaking at the <keyword id="6356925" type="General" weightage="20" keywordseo="BFSI" source="Orion">BFSI</keyword> Summit organised by Business Standard. When one compares the credit growth and deposit growth, it seems like a wide gap because of the base effects, Das said, adding that the credit growth is going up after two years of being depressed, while deposit growth number has come off a relatively higher growth during the pandemic years. "Just as the credit growth looks very high because of the low base effect of the previous years, the deposit growth is also pretty low because of the base effects of the previous years," he said. For the fortnight ending December 2, the system reported a credit growth of 17.5 per cent while the deposit growth has been trailing at 9.9 per cent. Das said in absolute terms, the credit expansion for the year to December 2 had come at Rs 19 lakh crore, while the deposit growth was Rs 17.5 lakh crore, which makes it clear that there is no "big gap" in the number. He said the credit growth, apart from being driven by base effects, is also indicative of the underlying fundamentals of the economy. Das acknowledged that he does get asked about deposits not growing, while credit is growing and if we are heading for an unsustainable situation and added that the answer to these concerns is in deposits growing to sustain credit growth over the medium to long term. Replying to a question on the banking system being unfair to savers, Das said the <keyword id="45828" type="General" weightage="20" keywordseo="deposit-rates" source="Orion">deposit rates</keyword> in the system are already moving up and he expects them to move up further. He said while the lending rates have moved up by 1.17 per cent, the deposit rates have gone up by 1.50 per cent in the system. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/airtel-dabur-delhivery-among-stocks-to-watch-out-for-on-wednesday/articleshow/96387096.cms">Sensex, Nifty50 open higher amid mixed cues in US and Asian markets – Airtel, Dabur, Delhivery among stocks to watch out for</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/rbi-governor-das-on-history-major-taunt-was-messi-also-a-post-graduate-in-history/articleshow/96395995.cms">RBI Governor Das on 'history major' taunt: Was Messi also a post-graduate in history?</a>

Credit growth far away from being considered as 'exuberant', says RBI Governor Das

Mumbai, Dec 31 () Non-food credit growth of banks slowed to 7.2 per cent to Rs 86.73 lakh crore in November, according to the latest data from the Reserve Bank of India.
 The credit had grown 13.8 per cent to Rs 80.93 lakh crore in the corresponding month of the previous year.
 Credit growth to industry fell to 2.4 per cent to Rs 27.72 lakh crore in November 2019 from 4 per cent in the corresponding month of 2018.
 "Within industry, credit growth to food processing, textiles, gems &amp; jewellery, chemicals &amp; chemicals products, infrastructure and construction decelerated/contracted," the RBI said in a release on Tuesday.
 However, credit growth to rubber, plastic and their products and cement and cement products accelerated during the month.
 Loans to agriculture and allied activities slowed to 6.5 per cent in November 2019 from 7.7 per cent last year.
 Advances to the services sector decelerated sharply to 4.8 per cent from 28.1 per cent last year.
 Personal loans grew at a marginally lower rate of 16.4 per cent in November 2019 as compared with 17.2 per cent, the data showed.
 Rating agency Icra in a recent report said credit expansion may plummet to a six-decade low of 6.5-7 per cent in 2019-20 compared to 13.3 per cent in the previous financial year. HV HRS

You Searched For "credit growth" and got 11 results

Credit Growth Continues To Boom

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Credit growth outpaced deposit growth of banks in June: RBI

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Credit growth in banks continues to exceed deposits, says new SBI report

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CRISIL forecasts bank credit growth will plummet to 1% with the economic fallout COVID-19

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Credit growth far away from being considered as 'exuberant', says RBI Governor Das

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Banks' non-food credit growth slows to 7.2 pc in November

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