Branch² Intelligence
Bank credit growth at two-year high at 18.6% as debt market turns costlier
Key takeaway
Bank credit growth hits 18.6% — a two-year high — as corporates shift from costlier debt markets to bank loans.
- Step 1corporate bond yields rise as debt markets turn costlier, pushing corporates to seek bank loans instead
- Step 2bank credit demand surges to 18.6% growth, straining banks' funding costs and liquidity buffers
- Step 3banks reprice loan products upward to protect net interest margins, passing higher costs to borrowers including SMEs
Source: IN:Economic Times
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