The Wall Street Journal

Wall Street Is Booming, but Banks Are in a Lending Rut

Weak loan growth is a worry, particularly for regional lenders

Customers lined up outside a Silicon Valley Bank branch in Wellesley, Mass., in 2023.
Customers lined up outside a Silicon Valley Bank branch in Wellesley, Mass., in 2023. Photo: Steven Senne/Associated Press

U.S. banks are no longer living in the shadow of the 2023 crisis sparked by the collapse of regional lenders Silicon Valley Bank, Signature Bank, and later First Republic. But recent reports offer a glimpse of what could haunt them next: a long, slow grind.

In particular, continued slow loan growth is becoming a drag on regional banks, which have less exposure to the booming Wall Street trading and investment-banking business that is benefiting some of the very biggest megabanks.

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