US Banks: C&I Loans Surge 11.4% YoY on AI Buildout
The Kobeissi Letter reports Commercial and Industrial loans at large US banks hit $1.6 trillion in October, up 11.4% year-over-year, the strongest pace since February 2023 and a reversal from the -8.0% contraction in Q4 2025.
SourceAnalysis
US bank lending accelerated sharply as AI infrastructure spending pulled in fresh credit. Commercial and Industrial loans at large institutions climbed 11.4% year-over-year in October to $1.6 trillion, the highest level since June 2020 and the fastest annual growth since February 2023.
The 25 largest banks posted nearly 10% year-over-year growth in the third quarter, the strongest reading in a decade outside pandemic distortions. That marks a complete reversal from the 8% contraction recorded in the fourth quarter of 2025. Big Tech firms and data-center developers drove the bulk of new borrowing, while regional lenders extended credit to construction companies riding the same wave. The data-center expansion is now being financed increasingly through debt rather than equity alone.
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