The volume of loans issued by banks has declined in the each of the past 11 quarters and now is 12% below its peak $8 trillion of 2008, according to Fitch Ratings. That puts the aggregate loan balance at roughly where it stood at the end of 2006. Fitch reported that loan balance declines have been centered in residential real estate, construction and commercial portfolios, with further declines likely in residential real estate, which represents 35% of total loans.
