Money Talk: Consumer credit jumps by $18.6 billion in May
by July 11, 2016 6:13 am 109 views
Editor’s note: Each Monday, Talk Business & Politics provides “Money Talk,” a wrap-up of banking and financial news.
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CONSUMER CREDIT JUMPS BY $18.6 BILLION IN MAY
In a sign that consumers are spending more and feel better about the economy, the Federal Reserve on Friday (July 8) reported that outstanding consumer credit jumped at a seasonally adjusted rate of 6.2% in May, up from 4.5% in May. Total outstanding credit, which does not include mortgage debt, rose $18.6 billion during the month, up 39% from $13.4 billion in April to a total of $3.62 trillion.
In addition, revolving credit – which includes most credit cards – rose at an annual rate of 3% ($2.4 billion) to $953.3 billion, compared to a 1.7% annual increase in April. Non-revolving credit – which includes home, car and business loans – rose at an annual rate of 7.3%, or $16.2 billion compared to April’s 5.5% rate. Total outstanding non-revolving credit is now $2.67 trillion.
To view the Fed’s consumer credit report, click here.
U.S. TREASURY RELEASES REPORT ON TERRORISM INSURANCE PROGRAM
The U.S. Department of the Treasury’s Federal Insurance Office (FIO) has released a new report that analyzes data that was collected this year by the Treasury concerning the participation of insurers in the Terrorism Risk Insurance Program (TRIP).
The report concludes that TRIP, which provides a federal backstop for certain U.S. property and casualty insurance losses resulting from a certified act of terrorism, is an important mechanism in ensuring that terrorism risk insurance remains available and generally affordable in the United States.
FIO, which was established within Treasury by the Dodd-Frank Wall Street Reform and Consumer Protection Act, monitors all aspects of the insurance sector, and assists the Treasury Secretary in administering TRIP.
A copy of the report, titled “Report on the Overall Effectiveness of the Terrorism Risk Insurance Program” is available here.
DELOITTE STUDY: BREXIT VOTE WILL IMPACT U.S. FINANCIAL INSTITUTIONS
As a result of the United Kingdom’s vote to exit the European Union, financial services institutions in England and Europe will bear the brunt of this event over both the short and longer term, according to a series of reports by the Deloitte Center for Financial Services. Still, there will also be implications for U.S. banking and capital markets, commercial real estate, insurance and investment management sectors, Deloitte says.
To view the Brexit report on U.S. financial institutions, click here.