"We continue to see a strong, steady improvement for America's banking industry, headlined by a sharp increase in business loans and a dramatic improvement in the quality of bank portfolios. Banks are well positioned to continue their role as critical economic drivers, supporting job growth and business expansion. Banks have ample capacity and are ready and willing to meet increased loan demand as business and consumer confidence improves."
Bank Lending Hits
"Banks reached a historic milestone in the second quarter, holding more than
"While total lending is up
Earnings Up, But Compliance Costs Dampen Profitability
"While net income is at a near-record high, profitability is down compared to pre-crisis levels as institutions grapple with a surge in compliance and regulatory costs that have had a sharp impact on the bottom line. Cutting expenses has supported bank earnings. While institutions continue to monitor every dime to ensure costs remain firmly under control, there is a limit on how far that can go. Business confidence and willingness to expand will be critical going forward, and will have a direct impact on both future earnings and the direction of the broader economy."
Asset Quality Continues to Improve
"Total past-due and non-performing loans continue their downward march. We are not yet back to normal levels, but the strong loans being put on the books today and the reduction in problem loans paints a very good picture of bank asset quality. The level of non-performing loans is down almost 56 percent since its peak in the first quarter of 2010. Net charge-offs fell to the lowest level since the third quarter of 2007."
High-Quality Capital Continues to Grow
"Capital in the industry is at record levels, and banks have been steadily building high-quality - or tangible equity - capital quarter after quarter. Banks continue to build strong reserves of high-quality capital, which now stands 42 percent higher than 2008 levels. Regulators have categorized 99.8 percent of banks as well-capitalized, which means their capital levels are at least 25 percent higher than minimum standards.
"Total industry capital is now almost
TNS 18EstebanLiz-140829-30FurigayJane-4841349 30FurigayJane
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