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ABA: The American Bankers Association
Statement

ABA Statement on FDIC's Fourth Quarter Bank Earnings Report

“The FDIC’s report shows that our nation’s banks remain healthy and well capitalized as they continue to support a strong U.S. economy. While business lending moderated in the fourth quarter amid policy and trade uncertainty, overall bank lending grew by more than $360 billion over the course of 2019, with loans up in nearly every category including business, consumer and real estate.

“The Federal Reserve’s recent rate cuts have narrowed banks’ net interest margins but have also helped support continued economic growth. Consumer finances remain very healthy, and we have seen upticks in consumer and real estate lending as a result. Deposit growth remains strong, which reflects the value that consumers place on the safety that federally insured depository institutions provide. Asset quality remains good and capital continues to rise, with nearly all banks – 99.8 percent – having capital ratios that meet the most rigorous regulatory standards. Banks continued to invest in their employees, increasing salaries and benefits by 5.4% in 2019.

“Strong fundamentals, ample deposits and higher capital are the foundation upon which banks can continue to support economic growth. Looking forward, banks are in the business of managing risk and remain well prepared for any changes to the economic outlook.”

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About the American Bankers Association

The American Bankers Association is the voice of the nation’s $20.3 trillion banking industry, which is composed of small, regional and large banks that together employ more than 2 million people, safeguard $15.8 trillion in deposits and extend nearly $11 trillion in loans.

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Mike Townsend

(202) 663-5471

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