Business Credit

Total Value of Loans for All Commercial & Industrial Loans, All Commercial Banks

Credit flows to nonfinancial corporations have been closely watched as a sign of confidence of business to add debt. In the current environment, key questions include: are changes the result of Basel requirements banks; bank credit criteria or business demand; what other ways are businesses seeking credit (especially working capital); what are consequences of reliance on alternative credit sources in the event of a liquidity crunch; and what are implications for monetary policy transmission?