US Banks Divest Billions in Consumer Loans
Washington, Sunday, 11 October 2026.
Recent Federal Reserve data reveals commercial banks divested $5.2 billion in consumer loans to nonbank institutions in late September 2026, shifting those funds directly into cash assets.
Aggregate Balance Sheet Shifts
The Federal Reserve Board released the H.8 report on October 9, 2026, detailing the financial position of domestically chartered commercial banks for the week ending September 30, 2026 [1][2]. Total assets for these institutions reached $22,305.2 billion on a seasonally adjusted basis, representing a significant increase from the $21,155.9 billion recorded in September 2025 [1]. This year-over-year growth calculates to a 5.433 percent rise in total assets, indicating expansion despite the divestment activities observed in consumer lending sectors [1]. Concurrently, total liabilities were reported at $19,875.7 billion for the same period, compared to $18,699.6 billion in the previous year [1]. The residual value, defined as assets less liabilities, decreased by $0.9 billion during the specific week ending September 30, 2026, highlighting tighter margins in certain operational areas [1].
Loan Portfolio Composition
Within the broader credit market, total loans and leases in bank credit stood at $12,696.9 billion for the week ending September 30, 2026 [1]. Commercial and industrial loans accounted for $2,336.5 billion of this total, showing an increase from $2,156.8 billion in September 2025 [1]. Real estate loans reached a substantial $5,716.2 billion, with residential real estate loans comprising $2,696.5 billion and commercial real estate loans making up $3,142.4 billion [1]. In contrast to the growth in commercial sectors, consumer loans totaled $1,927.8 billion, which included $1,096.4 billion in credit cards and other revolving plans [1]. The divestment of $5.2 billion in consumer and automobile loans to nonbank institutions suggests a strategic shift in risk exposure among domestic banks [1].
Liquidity and Data Accessibility
Cash assets increased by $5.2 billion during the week ending September 30, 2026, offsetting the divestment of loan assets [1]. This liquidity shift aligns with the allowance for credit losses on loans and leases decreasing by $0.9 billion [1]. For researchers and analysts tracking these metrics, the Federal Reserve announced plans to remove the Build Your Package feature in the Data Download Program during the week of November 9, 2026 [1]. Users are directed to transition to the Federal Reserve Bank of St. Louis’s Federal Reserve Economic Data platform for future data access and expanded download options [1][3]. This transition ensures continued availability of critical series such as Total Fed Funds Sold and Securities Purchased Under Agreements to Resell [3].