A report from the Federal Reserve Board reveals that consumer credit outstanding expanded by a seasonally adjusted annual rate of 8.5% in August 2016, reaching a total of $3.69 trillion. Eye on Housing staffer Michael Neal report on this increase which was affected by growth in both revolving and non-revolving credit.
While revolving credit grew at a slower pace than it did in July, non-revolving grew faster than it did during the previous month and played a larger role. Here's how the credit is dispersed:
Depository institutions and the federal government account for the majority of all consumer credit outstanding. However, the dispersion of asset holders is characteristic of non-revolving credit where the federal government holds 38% of non-revolving credit while banks and finance companies account for 25% and 23% of non-revolving credit respectively. Revolving credit is largely held by depository institutions.