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ABA: The American Bankers Association

ABA Statement on FDIC's Quarterly Banking Profile

“Today’s latest FDIC snapshot on the state of the banking industry as of the fourth quarter of 2020 shows that banks remain resilient through the pandemic-induced recession, and continue to serve as a steadying force for their communities and the broader economy. With strong capital and abundant liquidity parked in U.S. Treasury securities and other safe assets, banks are well-positioned to continue extending credit to support the recovery.

“Industry earnings, though down considerably for the year as banks braced for the recession, recovered for three consecutive quarters following sharp declines in the first three months of 2020. While total bank lending ticked down slightly in the fourth quarter, it increased 3.3% for the year, bolstered by strong growth in commercial and real estate lending that was partially offset by declines in credit card use. Non-performing loans have risen gradually during the downturn. However, banks factored in that risk by aggressively provisioning against potential losses at the onset of the pandemic in the U.S. Loan performance also reflects banks’ willingness to work with their customers and provide loan modifications and other relief during these challenging times.

“The unprecedented inflow of deposits – up 22.6% over 2020 – continued in the fourth quarter. This is largely due to consumers and businesses seeking the safety and security of banks as well as cash infusions from federal stimulus programs.

“America’s banks continue to display strong fundamentals and remain positioned to withstand ongoing economic headwinds. Banks continue to work with customers affected by the pandemic, providing a range of assistance options as well as playing a critical role in the Paycheck Protection Program. The countless hours banks of all sizes have spent processing these loans have helped millions of small businesses continue operations and keep employees on the payroll. Likewise, banks have remained a stable employer throughout the pandemic, with total bank employment up slightly to 2.07 million at year-end.”


About the American Bankers Association

The American Bankers Association is the voice of the nation’s $23.6 trillion banking industry, which is composed of small, regional and large banks that together employ more than 2 million people, safeguard $19.4 trillion in deposits and extend $12 trillion in loans.

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