Credit Suisse, Credit Suesco, JP Morgan Chase & Co., Bank of America, HSBC, UBS, Standard Chartered, U.K. Commercial Bank and 10 other banks have reported a decline in loan volumes for the third quarter, according to data compiled by Bloomberg.
The sector’s decline in total loans to consumers is also the largest drop since the fourth quarter of 2016.
The total number of loans for the three-month period, which ended Sept. 30, fell 5.4 percent to $6.4 trillion, the data showed.
Commercial bank revenue fell 6.6 percent to 1.7 trillion pounds ($2.9 trillion).
Commercial bank paychecks were down 11.3 percent to 5.8 trillion pounds.
Bank of Americans and JP Morgan said they would cut their loan volumes to reflect higher costs in the third-quarter.
The banks, which were not part of the Bloomberg survey, have reduced their loan volume in recent years, but it was smaller than the declines in the previous three quarters.
A Credit Suite survey showed a decline of 2.1 percent in consumer credit in the fourth-quarter, compared with the same quarter a year ago.
That’s down from a rise of 5.3 per cent in the first three quarters of the year.
In the U.T., the consumer credit market is a different story.
In January, the Uptown Business Association, which represents retail banks, said credit markets were under stress, with consumers borrowing less to spend and lenders reporting higher costs for credit cards.
U.S.-based Bank of Americas Holdings Inc. reported a drop in the number of people borrowing and spending more money in the second quarter, a sign that consumers are not spending as much as they did in 2016.
That means the banking sector is in negative territory, said Peter Scholl, chief U.N. economist at Pantheon Macroeconomics in New York.
Bank of America and HSBC reported declines in total loan volumes and total credit card balances in the quarter, compared to the same period last year.
Banks declined by 1.3 million and 1.1 million, respectively, in the same two quarters.
The total number fell by 6.3 and 4.5 million, according.
The two banks were among the top 10 borrowers, according, to the report.
Banks were expected to have $2.1 trillion in assets in the bank’s portfolios, down from $2,066 billion in the prior quarter, the bank said in a statement.
Siemens said its total loan portfolio fell by more than $2 billion in October from a year earlier.
As the economic slowdown continues, Uptime of credit is expected to remain low in the coming quarters.
According to data from Moody’s Investors Service, the average credit card balance for consumers was $2 million at the end of the third calendar quarter.
The data comes as the U inked a deal with the Bank of England to lower interest rates.
At least five of the banks have announced plans to cut interest rates, which could lower costs.
Bank Of America said it will reduce its loan-to-value ratio, the difference between the value of its debt and the amount of its assets, to 4.3 percentage points from 5.0 percentage points.
HSBC, which is part of HSBC Capital Management LLC, will also cut its interest rate by 2 percentage points, according a statement from the bank.
It is expected that the Bank Of England will raise its benchmark interest rate from 0.5 percent to 0.75 percent by the end in December, with a gradual roll-out.
Investors are also watching the Fed’s policy announcement.
“The Fed’s decision to delay rate hikes has helped lift the overall economy and created more room for the Fed to keep rates low,” said Tim DeSaulnier, head of fixed income strategy at UBS Investment Management, in a research note.
However, there are concerns that the Fed will cut rates further as it seeks to get more inflation under control.
Read more: How the U S. economy could recover after the Great Recession.
If the Fed does begin to raise rates further, it could also trigger another financial crisis, said David DeGraw, senior global economist at Credit Suus.
For the fourth time in six quarters, credit market data for the U of S fell below expectations.
(Reuters: Mike Blake) BofA said its consumer debt market has dropped by more $2 trillion since the second half of 2016, or 13 percent, to $13.6 trillion.
HSBC said its credit market debt has dropped 15 percent since the first half of 2017.
Credit Suisse and JPMorgan Chase are both expected to report second-quarter results.