A report compiled by Beacon Economics’ founding partner Chris Thornberg and released jointly on September 19 by the California Bankers Association (CBA) and Beacon Economics shows that bank lending in the first quarter of 2016 has broken previous lending records in the state.
The report is the ninth to be released by the CBA and Beacon, in a series of publications that examine key issues that impact banks in California and the economy in general. Data in the present report shows total outstanding loan value having exceeded $937 billion in the first quarter of this year. Outstanding loans saw a 7.3 percent growth throughout the U.S. in the first quarter of 2016, compared to the first quarter of 2015, while California’s loans saw comparable, but slightly lower growth, finishing at 6.8 percent year-over-year.
Thornberg’s report employs a unique database developed by Beacon that includes loans made by California-based banks as well as taking into account an approximation of lending within California made by financial institutions that are not headquartered in the state. Owing to the fact that the nation’s five largest banks are based outside of California, Beacon estimates that total lending in the state is much higher than other reported figures.