Our updated regional banking sector outlook is available here, and the weekly data shows a continued decline in loan growth in small and large banks, see the first chart.
The slowdown in loan growth is driven by Fed hikes and tighter lending standards following the SVB collapse.
With the Fed on hold until the middle of next year, these trends are likely to continue, and loan growth will soon turn negative.
![Weekly Fed data shows small and large bank lending growth slowing after SVB](https://apolloacademy.com/wp-content/uploads/2023/10/OCT31_chart1_v2-1.jpg)
![](https://apolloacademy.com/wp-content/uploads/2023/10/OCT31_chart2_v2.jpg)
![Bank stocks since the SVB collapse](https://apolloacademy.com/wp-content/uploads/2023/10/OCT31_chart3.jpg)
![Funding costs for banks since SVB and FRB](https://apolloacademy.com/wp-content/uploads/2023/10/OCT31_chart4.jpg)
![$1053 billion inflows into money market funds during this Fed hiking cycle](https://apolloacademy.com/wp-content/uploads/2023/10/OCT31_chart5.jpg)
![Banks with total assets between $100 million and $10 billion are more exposed to CRE loans](https://apolloacademy.com/wp-content/uploads/2023/10/OCT31_chart6.jpg)
![Banks from $1 billion to $10 billion have lower liquidity ratios](https://apolloacademy.com/wp-content/uploads/2023/10/OCT31_chart7_v2-1.jpg)