US banks post record lending income in Q3 as borrowing rises

US banks: US banks are financial institutions that accept deposits, provide loans, and earn income from the difference between interest charged to borrowers and interest paid to depositors. In the reported third quarter, JPMorgan Chase, Citigroup, and Wells Fargo drove a record level of lending income as customers continued borrowing despite higher rates. Credit risk: Higher rates may eventually pressure borrowers’ finances and increase defaults, creating a potential downside for banks if borrowing costs remain elevated. Lending income: Higher interest rates can initially increase banks’ net interest income by raising returns on loans, although deposit and funding costs may also rise. Borrowing demand: Recent results indicated that consumer and business borrowing remained resilient among JPMorgan Chase, Citigroup, and Wells Fargo despite increased financing costs.