The average weekly rate of business loan growth plummeted from 9.3 percent in 2016 to 2.7 percent for 2017 through Dec. 20, according to The Wall Street Journal.
In November 2016, after President Donald Trump was elected, bankers and investors predicted there would be a surge in corporate borrowing due to pro-business policies. The slowdown in corporate loan growth has bankers puzzled.
Some bankers believe borrowers are simply waiting for the right time borrow, and corporate tax rate cuts under Republicans' tax overhaul plan will open the floodgates, according to WSJ.
However, some experts disagree. "I'm not sure how much pent-up demand there is," Harris Simmons, CEO of Zions Bancorp, told WSJ in December. "The lack of loan demand mystifies me somewhat."
More articles on business and management:
Nasdaq breaks 7,000: 4 notes on 2018's first session
BP faces $1.5B hit under US tax reform: 3 things to know
Peter Thiel's venture capital firm buys millions in bitcoin as cryptocurrency continues surge