Data: Federal Reserve; Chart: Axios Visuals

U.S. banks are seeing deposits skyrocket and are pulling back on loans in the face of the coronavirus pandemic, newly released data from the Federal Reserve show.

Why it matters: It's the latest sign of trouble for the banking sector and the economy — a signal that consumers and businesses aren't starting new projects or focusing on growth, and are instead socking away cash.

By the numbers: The Fed's latest report on assets and liabilities of commercial banks shows that while banks have radically stepped up commercial and industrial loans, consumer loans have fallen precipitously.

  • Commercial and industrial loans rose year over year by 116.8% in March, 170.4% in April and 37.6% in May, in large part because businesses have been drawing on lines of credit.
  • Overall, consumer loans declined by 24.7% in May after a 41.7% decline in April.
  • Credit cards and other revolving plans saw 73.7% and 43.7% year-over-year declines in April and May.
  • Residential real estate loans and real estate loans overall also ticked down notably in May.

At the same time, deposits rose at a historic pace, adding to the $1.85 trillion of deposits reported by just the top 50 U.S. banks in the first quarter.

  • In April alone, deposits rose by $865 billion, more than the previous record for an entire year. In May, deposits gained again, rising by $604 billion.
  • After a brief decline during the week ended June 3, deposits again increased during the week ended June 10 by $85 billion.

Between the lines: It's more bad news for banks following a quarter in which profits fell 70%.

  • The FDIC noted in a recent report that “deteriorating economic activity” caused lenders to write off 15% more delinquent debt than the previous year and set aside $38.8 billion to cover potential loan losses, up nearly 280% from the prior year.
  • More than half of all banks reported a profit decline, and 7.3% of lenders were unprofitable in Q1. The amount of non-current loans rose 7.3% from the previous quarter, the biggest increase since 2010, according to the FDIC data.

The big picture: In addition to skittish consumers, banks have tightened their lending standards and are being "as conservative as possible, especially with people that aren't existing customers," Stephen Scouten, a bank analyst with Piper Sandler, said in an S&P Global Market Intelligence report last week.

  • "Bankers don't really have a clue yet what losses are going to look like."
  • "In terms of true new business, new customer production, they're going to be extremely cautious."

Go deeper: Marc Benioff and PayPal back payday loans alternative Even

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Markets swell as the economy shrinks

Illustration: Eniola Odetunde/Axios

The economy is sputtering, but the markets are thriving — a highly unusual event that shows how the coronavirus has thrown all bets off.

Why it matters: The disconnect adds to the wealth gap. The richest 10% of households — who own 84% of stocks — are getting richer, while millions of out-of-work Americans cross their fingers that pandemic unemployment benefits will be extended.

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15 states broke single-day coronavirus records this week

Data: Compiled from state health departments by Axios; Map: Danielle Alberti/Axios

At least 15 states broke their single-day novel coronavirus infection records this week, according to state health department data reviewed by Axios.

The big picture: The number of coronavirus cases increased in the vast majority of states over the last week, and decreased in only two states plus the District of Columbia, Axios' Andrew Withershoop and Caitlin Owens report.

Updated 14 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 3 p.m. ET: 11,143,945 — Total deaths: 527,681 — Total recoveries — 6,004,593Map.
  2. U.S.: Total confirmed cases as of 3 p.m. ET: 2,818,588 — Total deaths: 129,584 — Total recoveries: 883,561 — Total tested: 34,213,497Map.
  3. States: Photos of America's pandemic July 4 ICU beds in Arizona's hot spot reach near capacity.
  4. Public health: U.S. coronavirus infections hit record highs for 3 straight days.
  5. Politics: Trump extends PPP application deadlineKimberly Guilfoyle tests positive.
  6. World: Mexican leaders call for tighter border control as infections rise in U.S.
  7. Sports: 31 MLB players test positive as workouts resume.
  8. 1 📽 thing: Drive-in movie theaters are making a comeback.