US Bank Lending and Deposits Continue to Decline Amid Economic Uncertainty

US bank lending contracted by the most on record in the last two weeks of March, indicating a tightening of credit conditions in the wake of several high-profile bank collapses that risks damaging the economy. Commercial bank lending dropped nearly $105 billion in the two weeks ended March 29, the most in Federal Reserve data back to 1973. The recent bank failures have complicated the central bank’s efforts to reduce inflation without sending the economy into a recession.