U.S. Banks Maintain Credit Card Approvals Despite Economic Instability
- Major U.S. banks sustain credit card approvals into 2025.
- Banks report higher application volumes, contradicting contraction claims.
- Credit card delinquency rates surge, affecting lending standards.
Recent reports suggesting Wall Street banks pulling back on credit card approvals post-Trump are misleading as official data shows approvals rose amid lending standard changes due to economic instability.
This discrepancy highlights the importance of relying on verified data, impacting market perceptions as credit volatility influences TradFi and DeFi sectors without substantiated ties to political shifts.
Major U.S. banks, including JPMorgan Chase and American Express, continue to issue credit cards at increased rates through 2025 despite economic volatility.
Credit card approvals have risen, contradicting claims of a 5% drop under Trump, with banks maintaining robust issuance.
Increased Credit Card Approvals Challenge Recent Claims
The narrative that U.S. banks pulled back on credit card approvals in recent years is unsubstantiated. Data from 2024-2025 indicates that credit card applications and approvals have generally risen.
Despite claims of a 5% approval reduction, banks like Chase and American Express reported record-high application volumes, showcasing continued momentum in credit issuance into 2025. As Jamie Dimon, CEO of JPMorgan Chase, stated, “We are witnessing record-high application volumes and a robust demand for credit cards as we enter 2025.” – JPMorgan Investor Relations
Delinquency Rates Surge Amid Economic Volatility
Economic volatility has not led to a significant contraction in new card issuance. Increased delinquency rates have not deterred banks from approving more credit applications, maintaining consumer access to revolving credit.
The growing delinquency trend—especially among high-income ZIP codes—raises potential concerns about tightening standards; however, no direct crypto market effects have been observed from this financial data, as highlighted by Federal Reserve data.
Banks Maintain Stability Unlike 2008 and 2020 Crises
Historically, banks have tightened credit during crises like 2008 and 2020. Current trends show banks maintaining stability in credit card issuance, unlike the defensive measures of previous crises.
Experts suggest that continued monitoring of economic conditions is necessary. Potential outcomes could include stricter lending standards if delinquency rates continue rising, yet no immediate impact on crypto markets is evident, as noted by William Dudley, former President of the Federal Reserve Bank of New York, “While credit card delinquency rates are rising, we do not see a corresponding drop in approvals which remains strong across major issuers.” – Federal Reserve Bank of New York
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