The application rate for any kind of credit dropped to just over 41% this year from nearly 45% in 2022, according to a Fed survey.
The classic way banks make money rests on three words: net interest income.
Pressure to keep more capital puts constraints on banks, says Laurie Stewart of Sound Community in Seattle.
Moody's downgraded the credit ratings of several regional banks this week, citing rising costs and the troubled commercial real estate sector.
The plan would require big banks to keep more assets on hand. It could also affect regional banks, like the three that failed this year.
They've been operating under more scrutiny from the federal government and trying to manage the Federal Reserve's higher interest rates.
Hedge funds and private equity loans might lend like banks, but they're not regulated like them.
Larger lenders and regulators step in for the good of the overall banking system. But confidence among depositors is key.
Analysts say there's no reason to panic, but the sinking values of commercial properties could make those banks' balance sheets look pretty bad.
They're letting depositors know that their money is safe and highlighting differences between their banks and the ones that failed.