Bank C&I loans and credit creation slowdowns – a warning sign? While the overall slowdown in growth of bank loans has not gone unnoticed, its differences across categories and the varied risks they pose have not been fully assessed. So UBS Securities delved deeper into the numbers to answer the question: Should investors be concerned about the marked decline in credit creation? The Swiss bank’s short and quick answer: The decline in credit creation is not likely to herald significant corporate stress in the coming months because the supply of credit remains sufficient, but businesses and investors could be understating…
UBS: Are We Underplaying Risks from Poor Credit Growth?
Bala Murali Krishna
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