Banks globally are finding there are fewer corporate acquisitions to finance now, forcing lenders to focus on a less lucrative business: giving loans to corporations looking to cover rising expenses amid high inflation.

According to data compiled by Bloomberg, the value of global mergers and acquisitions (M&A) has dropped about 29 percent compared with the same time a year ago, amid widespread market volatility that's left firms dealing with soaring interest rates. That's led to a drop in new business for banks arranging high-grade loans backing deals, with a 55 percent slump in the U.S. year-to-date compared with the same period in 2021 and a similar plunge in Europe.