According to S&P Global, US banks have a tendency to accumulate cash on their balance sheets and show a lack of appetite for lending.
According to the firm, in the first three months of 2025 banks will have increased their cash equivalents and holdings by $88.66 Billion.
JPMorgan Chase, Citibank and the other US banks ranked first and third in terms of total assets drove most of the growth. This was backed up by deposits, especially those from non-US sources.
The first quarter saw banks park more cash in the form of equivalents and other assets while their customers waited to see the effects of tariffs. Median change in cash equivalents increased to 11,0% from 0.3% during the fourth quarter 2024 .”
During the first quarter, however, there was a slight increase in loan growth of less than one percentage point.
Banks have cut credit cards, loans for non-residential building, auto loans and farm loans. This trend is likely to continue.
Analysts are reducing net loan growth forecasts for many of the biggest US public banks, and they do not expect a substantial rise in the rest of this year.
The post US Banks amass an $88,660,000,000 cash stockpile in just three months as lenders abruptly hoard assets: S&P Global, may change as new information becomes available.
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