Bank CD Issuance Plunges as Deposits Outpace Credit

Banks are issuing fewer CDs, which are like short-term loans.

This is because people are putting more money into banks than banks are lending out.

In the June quarter, there was a big drop in CD issuance.

In July and August, the trend continued, with even fewer CDs being issued.

This shift has led mutual funds to invest in other financial tools.

The slowdown in both deposits and loans has been a main reason for this.