Total Loans
Aggregate value of all outstanding loans on a bank's balance sheet.
Definition
Total loans represents the sum of all loan categories held by a bank, including commercial and industrial loans, commercial real estate, residential mortgages, consumer loans, and credit cards. Loan growth is a primary driver of NII growth.
Why It Matters
Loan growth signals economic activity and bank competitiveness. Rapid growth may boost short-term earnings but could indicate loosening credit standards. Declining loans may reflect weak demand or intentional de-risking.