Bank lending to small businesses declined during the third quarter, according to data published in FDIC call reports.
Here are some key statistics:
- Domestic deposits in America’s Banks increased by $271.5 billion dollars during the third quarter to $7.821 trillion dollars.
- Small business loans held by America’s banks decreased by $4.84 billion dollars during the third quarter to $605.8 billion dollars.
- The average ratio of small business loans to domestic deposits has now decreased to 7.75% from a previous level of 8.09% at the end of the second quarter.
- Bank of America, the nation’s largest bank, decreased their small business loans by $410 million dollars in the third quarter. Bank of America’s decline contributed to 8.5% of the overall decline in small business lending. This trend is consistent with a story reported in the Los Angeles Times yesterday.
As of today, MultiFunding’s Small Business Bank Report Card now reflects the most current data available from the FDIC. Now, when small business owners visit www.multifunding.com/banks, they can review the small business lending activity for their community banks as of 9/30/2011.