Signs of Credit Crunch that the Fed Fears May Already Be Emerging

Jeffrey Haley, the CEO of American National Bank and Trust Company, saw the crunch coming at the start of 2023.

Rising interest rates and a slowing economy to him meant that loan growth would likely fall by half as the Danville, Virginia-based community bank turned its focus to better-quality, higher-yielding credit, worrying little about volume.

Then a pair of U.S. regional banks abruptly failed in mid-March. Instinct told him things would tighten further, with loan growth plunging to perhaps a quarter of what it was in 2022, when his bank’s loan book grew by 13% to around $2.1 billion.

Source : Signs of Credit Crunch that the Fed Fears May Already Be Emerging