03/29/2024

What Trump Bump? Businesses Aren’t Borrowing from Banks

Companies have grown more reluctant to borrow after an initial surge of optimism following the election, said Jeff Glenzer, vice president at the Association for Financial Professionals, a group for corporate finance and treasury professionals. “All the turmoil and the inability to move policy through Washington set in,” he said.

But analysts say the prolonged slowdown in commercial-loan growth may simply be a function of the metric returning to its normal level in recent decades. Growth in the category ran far above gross domestic product growth in the years following the financial crisis, a streak that is difficult to maintain for any prolonged period.

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