bank loans and deposits rose slightly at the end of july suggesting the us financial system is still in good health even though lenders have become more cautious total bank lending increased by 126 billion to 1212 trillion in the seven days ending july 26 the federal reserve reported friday bank deposits meanwhile climbed by 33 billion last week to 1734 trillion key details commercial and industrial loans a key economic driver edged up by 29 billion to 275 trillion all of the increase took place at large us banks smaller banks slightly reduced these loans these types of business loans had peaked at 282 trillion in march before the collapse of silicon valley bank all figures are taken from the federal reserve’s weekly h8 survey and are seasonally adjusted big picture banks have curtailed lending and stiffened requirements for borrowers to qualify for loans in the aftermath of a spate of bank failures in the spring read banks make it tougher for consumers and companies to borrow money so far the decline has been gradual leaving the us economy largely unscathed yet the economy could suffer if the amount of loans continues to shrink borrowing is a spur for growth especially if the money is used to start new businesses or expand existing ones market reaction the dow jones industrial average djia closed lower on friday the yield on the 10year treasury note tmubmusd10y fell 12 basis points to 406 after a softer july jobs report