Loans and leases (of all types) as percentage of US banks' total balance sheets continue to decline and are now at the lowest levels in at least 40 years (since this data has been kept).
Source: FRB (40 years)
Credit is being displaced by cash (reserves), as the Fed's securities purchases result is further dilution of US banks' balance sheets. While some believe this will motivate banks to accelerate lending, as the chart below shows, it hasn't. Credit expansion in the US has been slowing and is well below pre-recession levels.
Source: FRB
Source: Sober Look
